Business and Economic Reform Policies in Kuwait: The Case of the Capital Market Authority

Abstract

Despite economic reform policies in Kuwait being mainly based around the empowerment of the private sector, the discourse concerning economic policies rarely addresses the role of the country’s existing business community in promoting or stalling such reforms. The private sector in the Gulf is generally perceived as politically passive, due to its state dependency. The article questions such representation of the political role of businesses. It suggests, first, that Kuwaiti merchants retain their political influence through formal and informal means, and are therefore able to shape economic policy-making according to their interests. Secondly, through analysis of Kuwait’s Capital Market Authority reform, it shows that not all initiatives aimed at improving the business environment and liberalising the economy are welcomed by the dominant private sector players. Thus, it is often the business community itself that uses its methods of political influence to halt and reverse certain economic reform policies.