The development comes a day after a royal decree was issued by the country’s emir to form a new government made up of 12 ministers.

The new Kuwaiti government led by Prime Minister Ahmad Nawaf al Ahmad.
The new Kuwaiti government led by Prime Minister Ahmad Nawaf al Ahmad. (Reuters)

The new Kuwaiti government led by Prime Minister Ahmad Nawaf al Ahmad has been sworn in.

Crown Prince Meshal al Sabah hosted the 12-member Cabinet at the Bayan Palace in the capital Kuwait City at a ceremony attended by top officials, state news agency KUNA said on Tuesday.

Oil Minister Mohammad al Fares, Finance Minister Abdul Wahab al Rasheed and Foreign Minister Sheikh Ahmed Nasser al Mohammed al Sabah were all reappointed to their posts in the new government.

A royal decree was issued by the country’s emir on Monday to form a new government made up of 12 ministers.

The crown prince's move aims to resolve a stand-off between the government and elected parliament that has hindered fiscal reform. 

Last month Crown Prince Sheikh Meshal al Ahmad al Sabah, who took over most of the ruling emir's duties, said on Tuesday he was dissolving parliament and would call for early elections. 

"To rectify the political scene, the lack of harmony and cooperation ... and behaviour that undermines national unity, it was necessary to resort to the people ... to rectify the path," Sheikh Meshal said in the decree dissolving parliament.

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Political stability in Kuwait, an OPEC oil producer, has traditionally depended on cooperation between the government and parliament, the Gulf region's most lively legislature. 

The previous government resigned in April ahead of a non-cooperation motion in parliament against Prime Minister Sheikh Sabah al Khalid, who late last month was replaced as premier by the current emir's son Sheikh Ahmad Nawaf al Sabah.

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Kuwait bans political parties but has given its legislature more influence than similar bodies in other Gulf monarchies.

Deadlock between government and parliament in Kuwait has often led to cabinet reshuffles and dissolutions of the legislature over the decades, hampering investment and reforms. 

The last time parliament was dissolved was in 2016.