FACTBOX-Economic reforms at stake in Kuwait elections
May 16 (Reuters) - Kuwaitis are voting in parliamentary elections on Saturday, two months after the ruler, Sheikh Sabah al-Ahmad al-Sabah, dissolved the Islamist-dominated parliament to end a long-running dispute with the government.
The world's fourth-largest oil exporter wants to diversify and revitalise its economy, hit by the global crisis, but several reforms have been delayed in parliament due to the row.
The elected parliament has the power to approve laws and Kuwait's budget. It can also cancel major deals and projects.
Following is the status of key reform plans:
GOVERNMENT-APPROVED
-- The last cabinet resigned in March, paving the way for the ruler to approve a 1.5 billion dinars ($5.18 billion) economic stimulus package through emergency legislation. The plan, which faced some opposition in the last parliament, still needs to be approved by the new assembly. Analysts say it is more likely to be passed by the new parliament when it convenes for the first time in June because implementation will already be under way.
-- In December, the government launched an investment fund worth at least 1.5 billion dinars to shore up the stock market after it was hit by the global financial crisis.
-- Last year, the central bank saved Gulf Bank (GBKK.KW), the fifth-largest local lender by market value, and ordered the bank to restructured. The Kuwait Investment Authority, the country's sovereign wealth fund, bought a 16 percent stake in Gulf Bank when it made an emergency rights issue.
PASSED BY PARLIAMENT
-- Parliament passed a law in October to guarantee bank deposits after the central bank stepped in to save Gulf Bank following derivatives losses worth $1.4 billion.
-- Parliament approved in January 2008 the sale of loss-making national carrier Kuwait Airways [KA.UL] within two years.
-- Deputies approved in 2007 a government-sponsored bill to cut tax on foreign firms to a flat 15 percent from up to 55 percent. Gains on the stock market will be tax-free for foreign investors.
-- Parliament also approved a bill to outsource more activities such as warehousing facilities.
