Kuwait’s dysfunctional politics continues to stymie economic diversification whilst yet another cabinet reshuffle looms. Oil price gains are helping reduce the budget deficit, but non-oil revenues account for barely 10% of the total.

Oil price gains enabled Kuwait to secure a 19.4% year-on-year real terms fall in its budget deficit for the year to 31 March 2018. The Ministry of Finance this week announced that the deficit fell from $19.5bn to $16bn. Predictably the deficit was much...