Empresas y finanzas

Kuwaitis go to the polls

By Ulf Laessing and Rania El Gamal

KUWAIT (Reuters) - Kuwaitis voted in a parliamentaryelection on Saturday that they hoped would bring in fresh facesable to bury political feuds and push through economic reforms.

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

Women won the right to vote and stand for office in 2005but face an uphill struggle attracting voters in a Gulf Arabcountry where many still believe a woman's place is in thehome.

"I'm against women in parliament. I think everybody shouldstay in his place," said Samira al-Azm, a voter in her fifties.

Nearly 362,000 Kuwaitis, over half of them women, areeligible to vote, but polling got off to a slow start on a hot,dusty weekend. By noon an average 25.6 percent of voters hadcast their ballots, state new agency KUNA said.

Kuwait's ruler, Sheikh Sabah al-Ahmad al-Sabah, dissolvedparliament in March to end a standoff with the cabinet that haddelayed economic reforms aimed at preparing Kuwait for the erawhen its vast oil reserves run out.

The last assembly focused on questioning ministers overtheir conduct, forcing several to resign. The OPEC producer hasyet to appoint an oil minister since the last quit in November.

Amid the political squabbles, reforms such as a bill toattract foreign investment were left on the back burner.

"I expect many of the old assembly not to make it. Theirperformance was not good enough. They were pursuing their owninterests, not solving Kuwait's problems," said Hanaa, 33.

REFORM HOPES

Kuwait's bourse, the second-largest in the Arab world, roseafter parliament was dissolved on hopes the new chamber wouldbe more business-friendly but has since shed some of its gains.

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

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

Candidates have also been detained on vote-buyingallegations and, under the new rules that have cut the numberof constituencies from 25 to five, no one can predict who willwin.

Analysts said the main Islamist and tribal blocs would dowell in the enlarged districts where independents may struggle.

"They will enter the parliament. They are a big part of thesociety," said Amani Bouresli, a finance professor at KuwaitUniversity. "But we expect a big change, almost 40-50 percentchange, because of the five constituencies. There will a changein the faces but not in the formation of the assembly."

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

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

Part of the problem is that ordinary Kuwaitis opposereforms that would cut their benefits. They pay no taxes andare content with state jobs and handouts and free health andschools.

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

Reforms will be even harder to push through with globalfood prices rising and inflation at a record 9.5 percent inJanuary.

(Editing by Lin Noueihed and Philippa Fletcher)

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