Kuwait credibility on the line

The Kuwaiti decision to refer the Petrochemical Industries - Dow Chemical joint venture to the Fatwa and Legislation Department threatens its cancellation. The project has become a micocosm of Kuwaiti politics. There is serious friction between the parliament and the cabinet. At the same time, the political and economic outlook for Kuwait is weak. There is disappointment in Emir Sabah's failed efforts to implement reforms.

As far as the Petrochemical Industries - Dow Chemical joint venture goes, the whole Kuwaiti business environment is concerned about an undermining of the concept of contract sanctity. Still, the Kuwaiti government is confident that the deal will move forward, especially since it considers that all the financial concerns expressed by the parliament have been addressed.