Kuwaitis go to the polls and economy tops agenda

Kuwaitis voted in a parliamentary election on Saturday that they hoped would bring in fresh faces able to revive economic reforms to wean the country off its dependence on oil.

Some 275 candidates are running for the 50-seat National Assembly, among them 27 women hoping for their first success after failing to win a single seat in 2006.

Women won the right to vote and stand for office in 2005.

Some 361,685 Kuwaitis, over half of them women, are eligible to vote. Members of the security forces are not allowed to vote.

The Gulf Arab state's ruler, Sheikh Sabah al-Ahmad al-Sabah, dissolved parliament in March to end a standoff with the cabinet that had delayed economic reforms aimed at preparing Kuwait for the era when its vast oil reserves run out.

"Oh voter - which Kuwait do you want?" said the daily al-Rai in an editorial, urging voters to support candidates putting national interest first and seeking to work with the government to approve reforms aimed at enlivening the country's economy.

Kuwait's stock market, the second-largest in the Arab world, initially rose on hopes the new chamber would be more business-friendly, but has shed some gains recently.

"Investors now want to see some action," said Mustafa Behbehani, a director at Gulf Consulting Co in Kuwait.

The two-month campaign has been marred by protests, arrests and confusion after a new law redrew electoral districts to ensure a more balanced representation in a parliament that has tended to be dominated by Islamist blocs and tribal alliances.

Candidates have also been detained on vote-buying allegations and, under the new rules that have cut the number of constituencies from 25 to five, no one can predict who will win.

The last assembly focused on questioning ministers over their conduct, forcing several to resign. The major OPEC producer has yet to appoint an oil minister since Badr al-Humaidhi resigned in November.

Kuwait, which sits on 10 percent of the world's oil, wants to wean its economy off energy exports and emulate the success of neighbours like Dubai and Bahrain which have transformed themselves into financial centres and tourist destinations.

But Kuwait's political standoff means even a long-awaited bill aimed at attracting foreign investment has yet to pass.

Oil makes up over 90 percent of Kuwaiti government revenues and 55 percent of the gross domestic product in 2006, according to official data. That compares to 3 percent of GDP in Dubai.

Part of the problem is that ordinary Kuwaitis oppose reforms that would cut their benefits. They pay no taxes and are content with state jobs and handouts and free health and schools.

Many Kuwaitis are also fed up with a state which, despite its oil wealth, allows roads, hospitals and schools to crumble.

Reforms will be even harder to push through with global food prices rising and inflation at a record 9.5 percent in January.

"They don't treat you, they torture you," said a woman, describing dental treatment at a flagship state hospital.