Emir Mishal faces familiar set of challenges

2 January 2024

 

The succession of a new emir in Kuwait hands formal power to another long-serving figure from the Al-Sabah dynasty. Sheikh Mishal al-Ahmad al-Jaber al-Sabah – only three years younger than his late elder brother, Sheikh Nawaf al-Ahmad al-Sabah – is a well-known figure who has held senior defence and security roles in the past, and since 2020, the crown prince position.

Effectively, Sheikh Mishal has been in charge of the government since at least November 2021, when Nawaf’s deteriorating health meant day-to-day power was transferred to his younger brother. This may be a positive, say analysts.

“Since then, there’s been an improvement in parliamentary relations with government, so that could be a positive sign for the future,” says Kristian Ulrichsen, a Middle East fellow at the Baker Institute.

Continuity candidate

Perhaps mindful of the view of many in Kuwait that the new emir hardly represents a break with the past, Sheikh Mishal’s first speech on taking power on 20 December was bold in tone and substance.

He told MPs that both they and the government had harmed the interests of the people. He even voiced disagreement with the late Emir Nawaf over some of the pardons he had issued to individuals accused of spying for Iran and Hezbollah.

That robust style was already evident in June 2022, when the then crown prince attacked the government for a “lack of clarity” in its vision, which he implied had done little to dampen broader opposition to the government.

Sheikh Mishal also appeared to hint that unless there was an improvement and the various logjams obstructing progress removed, the National Assembly could be suspended – regarded in Kuwaiti political circles as the “nuclear option”.

That seems an unlikely prospect. In fact, Sheikh Mishal has also taken conciliatory positions. According to Ulrichsen, many of the politicians who were convicted in the 2010s under former Emir Sheikh Sabah were granted amnesties out of a desire for reconciliation and to move on from the post-Arab Spring decade.

“Because of Nawaf’s ill health, Mishal was the driving force behind that. He’s been signalling to the political class that he’s willing to give them a chance,” says Ulrichsen.

Shifting power dynamics

If the new emir is to give substance to the more ambitious elements of his first speech on taking the oath, then he will need to make some senior appointments that can effect that change. 

“There’s certainly been an attempt to replace or reshuffle a lot of the old guard, and that’s associated with Mishal even if Nawaf was the emir in name,” says Ulrichsen.

Powerful incumbents such as Defence Minister Sheikh Ahmad Fahad al-Sabah are expected to remain in position. He has been viewed as a potential emir himself, enjoying the advantage of relative youth – he is in his late 60s.

The latter’s main rival within senior circles has been the former prime minister Sheikh Nasser Mohammed al-Sabah, who is 81 and less of a direct challenge to Sheikh Mishal. The intense competition between Nasser and Ahmad made it easier for Mishal to emerge as the consensus emir candidate.

Another brewing rivalry could see the sons of the late Emir Nawaf and Sheikh Mishal making plays for a shift in generational power.

Both men were influential in the reorganisation of senior decision-making processes, which saw a number of individuals associated with the late Sheikh Sabah removed from office. Emir Mishal’s son, Ahmad Mishal al-Ahmad, was the head of the Government Performance Monitoring Agency. Ahmad Nawaf al-Ahmad, who was prime minister between June 2022 and December 2023, remains a powerful figure in Kuwait City.  

Given Emir Mishal’s advanced age, these two men are viewed as potential succession candidates – representing a younger generation that some have viewed as presaging a shift seen over recent years in Saudi Arabia, the UAE and Qatar.

Such hopes may be dashed since the reality is that there is not a Kuwaiti version of Saudi Arabia’s Mohammed bin Salman waiting in the wings. And given the parliament’s important role in the approval process – uniquely in the Gulf – Kuwait’s ruler does not have the same freedom of action that his counterpart in Saudi Arabia has. 

Nevertheless, “the Al-Sabahs are running out of brothers. They’ve basically gone from one brother to another for the last 46 years, and their ability to continue that is in question”, says Ulrichsen.

Regional implications

The change of guard in Kuwait also has implications for the rest of the Gulf, given the state’s historic role as a regional peace broker and bridge builder within the often-fractious Gulf Cooperation Council.

The aftermath of the Al-Ula agreement in 2021, which ushered in the reconciliation between Qatar and its GCC antagonists, Saudi Arabia, the UAE and Bahrain, means there is now less requirement for Kuwaiti intermediation.

In any case, Kuwait’s effectiveness in that role largely rested on the personal qualities of the late Emir Sabah, who had decades of diplomatic experience to draw on. His successors do not enjoy such elevated status.

The coming months will give a clearer idea of how Emir Mishal intends to stamp his authority. Those anticipating root and branch change may be disappointed. A younger generation is still some way from taking the reins of power in Kuwait, and the country could still prove stubbornly resistant to the kinds of reforms that have swept through other GCC states.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11404550/main.gif
James Gavin
Related Articles
  • GE Vernova invests in Xlinks

    2 May 2024

    US-headquartered GE Vernova has invested $10.2m in Xlinks First, the investment company established by UK-based startup Xlinks to deliver the $18bn Morocco-UK power project.

    This investment equates to a minority shareholding in the company, which is developing a project comprising wind and solar generation as well as battery storage, with a total combined capacity of 3,600MW, to be transmitted from Morocco to the UK.

    Xlinks said the investment will “further accelerate delivery and buildout of the project”.

    GE Vernova joins at least four other investors in the project.

    Other investors include Africa Finance Corporation, which invested $14.1m in April; Abu Dhabi National Energy Company (Taqa), $30.7m; the UK’s Octopus Energy, $6.23m; and France’s Total Energies, $25.4m.

    The planned electricity generation and battery storage facilities, located in south Morocco, will be connected exclusively to the UK via 4,000-kilometre high-voltage, direct current (HVDC) cables.

    In December last year, Xlinks signed a contract with Canada-headquartered WSP to provide technical advisory services for the project.

    WSP will support Xlinks with route optimisation, power systems and interface management for the plan to construct the project.

    The Morocco-UK power project entails building 10,500MW solar and wind farms in Morocco’s Guelmim-Oued Noun region and sending 3,600MW a day of energy exclusively to the UK via four 3,800-kilometre HVDC cables.

    The HVDC network is envisaged to run from the UK’s south coast, passing France, Spain and Portugal undersea and then onshore to a planned solar and wind energy project in Morocco.

    This renewable energy-sourced electricity amounts to nearly 8% of the UK’s current requirements, equivalent to powering 7 million homes by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11734222/main5830.jpg
    Jennifer Aguinaldo
  • Awards buoy Oman’s green hydrogen strategy

    2 May 2024

    Commentary
    Jennifer Aguinaldo
    Energy & technology editor

    Oman has awarded two additional land blocks designed to develop green hydrogen projects.

    The latest land block concessions in Dhofar were awarded to two consortiums. One comprises a team of France's EDF Group and EDF Renewables, with partners Japanese Electric Power Development Company (J-Power) and the UK-headquartered Yamna Company.

    Another team comprises UK investment firm Actis and Australian metals firm Fortescue.

    This brings the total number of land blocks awarded through the public auction process spearheaded by Hydrogen Oman (Hydrom) to four, exclusive of the four legacy initiatives signed or agreed upon already.

    *Budgets are MEED estimates if not publicly disclosed. Sources: MEED, Hydrom

    A limited gas supply and network strongly incentivises Oman to build a green hydrogen-centric downstream sector that will provide feedstock to domestic industrial plants and generate derivatives for the local and export markets.

    Stakeholders have implemented a strategy, including setting up an infrastructure company catering to these projects. The target is to generate 1 to 1.5 million tonnes a year (t/y) of green hydrogen by 2030 and 7.5 to 8.5 million t/y by 2050.

    The blueprint envisages a complete green hydrogen ecosystem, from the production of renewable energy and its distribution to electrolysis plants and hydrogen derivatives conversion plants to storage and export terminals.

    Omani ports' existing relationships with European stakeholders and growing alliances with other countries could also help seal future offtake agreements for the planned facilities.

    As things stand, the consortiums that won the land auctions and the legacy initiative partners provide much gravitas to Oman's green hydrogen programme. They comprise energy old guards such as BP and Shell that are keen to decarbonise, private companies aiming to balance their investment portfolios with clean energy investments, and offtakers or trading companies that are grappling with net-zero targets.

    Yet the most obvious question remains. Given the eye-popping foreign direct investments these complex projects entail, not all are likely to achieve a final investment decision within three years. This seems to be the window required for the projects to start production before 2030.

    But like any emerging industry, the risks can only be properly assessed and mitigated as the first projects move toward the execution phase.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11733331/main.gif
    Jennifer Aguinaldo
  • Operationalise loss and damage fund says Al Jaber

    2 May 2024

    Steps must be taken to ensure a fully functioning Loss and Damage Fund, following an agreement at Cop28 to operationalise the fund, according to Cop28 President Sultan Al Jaber.

    “While delivering an agreement to operationalise the Fund at Cop28 was a huge breakthrough for climate progress more needs to be done,” Al Jaber said during the first board meeting of the fund on 30 April.

    The Loss and Damage Fund, which was first proposed in the 1990s, aims to help developing countries cope with the impact of extreme global warming events such as droughts and floods.

    Al Jaber cited the need to build a fully functioning fund, which will be endorsed at Cop29 in Baku, which will be “disbursing funds soon after and a Fund that delivers lasting, positive, socio-economic impact for decades to come."

    "While it took over three decades to establish this Fund, climate change has not stood still. Every region of the world is now vulnerable…the impacts of climate change are a clear and present danger to lives and livelihoods everywhere."

    Al Jaber’s message resonates closer home given the recent storms hitting the UAE, which brought some emirates to a standstill in mid-April.

    Heavy rainfall inundated Dubai and the Northern Emirates on 16 April, causing flooding and significant property and infrastructure damages.

    A total of $792m has been pledged for loss and damage funding arrangements – of which $662m has been pledged to the Fund to date – including a $100m contribution each from the UAE and Germany and $75m from the UK.   

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11732746/main.jpg
    Jennifer Aguinaldo
  • Norwegian firm to develop Oman wave energy project

    2 May 2024

    Oman's shipping and logistics firm Asyad Group has signed an agreement with Norwegian wave energy company Havkraft to explore the development of wave energy.

    It is the first project of its kind in the sultanate and across the region.

    Havkraft is known globally for pioneering technologies that enable the production of renewable electricity from wave energy.

    According to Havkraft Middle East adviser Matt Minshall, wave power has the potential to be the “most eco-friendly and cost-effective route to net zero”.

    Oceans cover 78% of the earth’s and waves have the potential for energy with the reliability of a constantly charged battery, and have remained untouched, according to Minshall.

    The Norwegian startup reached a breakthrough in 2013 when it successfully developed the Havkraft Wave Energy Converter (H-Wec), which is suited for "all types of wave climates globally."

    Since then, the company has launched several solutions, including the deployment of a floating power-plant powered entirely by wave energy.

    Havkraft envisages a supersystem – a combination of solar, wind and wave power – to achieve a more resilient and sustainable energy mix while reducing dependence on expensive storage.

    Photo: Asyad

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11732539/main.jpeg
    Jennifer Aguinaldo
  • Saudi Arabia foregoes April nuclear deadline

    2 May 2024

     

    Register for MEED's guest programme 

    The 30 April bid deadline for nuclear technology providers to submit bids for a contract to build Saudi Arabia’s Duwaiheen nuclear power plant project has passed without any clear indication of a new tender closing date, according to two sources familiar with the project.

    “The understanding is that the tendering process requires a level of [political] stability in the region. This seems like an automatic postponement for the project tendering process,” one of the sources said.

    Companies that have been invited and are expected to bid for the contract include:

    • China National Nuclear Corporation (CNNC, China)
    • Korea Electric Power Corporation (Kepco, South Korea)
    • Rosatom (Russia) 
    • EDF Group (France)

    The project is in the so-called bid invitation specification stage, and there are no direct negotiations between the client and the potential bidders at this stage, MEED reported in July 2023.

    Saudi Arabia plans to build a large-scale nuclear power plant facility as part of its energy diversification agenda. 

    However, the ongoing conflict between Israel, Gaza and other neighbouring countries appears to be a major contributing factor in the extended procurement timeline of the Duwaiheen nuclear plant project.

    In October, an industry source said the ongoing conflict in Gaza is not likely to help advance negotiations between the countries with a key stake in the project.

    It is understood that Riyadh is using its nuclear power plant project, along with its plan to enrich uranium sources as part of its industrial strategy, as a bargaining chip with the US government. The White House is pushing for the normalisation of relations between Israel and Saudi Arabia and opposed to uranium enrichment.

    A month before the latest conflict between Israel and Hamas started, it was reported that senior Palestinian officials were in Riyadh for talks with senior Saudi and US officials.

    According to a BBC report in September 2023, the Palestinians were negotiating for hundreds of millions of dollars and more control of land in the occupied West Bank in the event of a three-way deal between Israel, Saudi Arabia and the US.

    On 14 October, Saudi Arabia suspended the talks on potentially normalising ties with Israel, which it never officially recognised as an independent state.

    Consultants

    Duwaiheen Nuclear Energy Company received three bids for the project management consultancy package for the nuclear plant project last year.

    MEED understands the following companies submitted proposals for the contract:

    • Atkins (UK/Canada)
    • Worley (Australia)
    • Assystems (France)

    Two of the three bidders have had previous engagements with the Saudi nuclear energy project. 

    2.8GW project

    The Duwaiheen nuclear power plant is expected to be procured using a traditional design-and-build model. 

    In September 2016, MEED reported that Saudi Arabia was carrying out technical and economic feasibility studies for the first reactors, and was also looking at possible locations for the kingdom’s first nuclear project, a 2.8GW facility.

    A site at Khor Duwaiheen, on the coast near the UAE and Qatari borders, was subsequently chosen for the first project.

    In March 2022, Saudi Arabia announced the establishment of a holding company – understood to be the Duwaiheen Nuclear Energy Company – to develop nuclear power projects in the country to produce electricity, desalinate seawater and support thermal energy applications.


    MEED's April 2024 special report on Saudi Arabia includes:

    > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
    > BANKING: Saudi lenders gear up for corporate growth
    > UPSTREAM: Aramco spending drawdown to jolt oil projects
    > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

    > POWER: Riyadh to sustain power spending
    > WATER: Growth inevitable for the Saudi water sector
    > CONSTRUCTION: Saudi gigaprojects propel construction sector
    > TRANSPORT: Saudi Arabia’s transport sector offers prospects

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11729932/main3634.jpg
    Jennifer Aguinaldo