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Economic uncertainty looms after Kuwaiti emir's death

Kuwait faces a wave of bankruptcies as the COVID-19 crisis wreaks havoc on the emirate’s economy, which is in desperate need of reform.
Sheikh Nawaf al-Ahmad Al-Sabah salutes the crowd after being sworn in as Kuwait's new Emir at the National Assembly in Kuwait City on September 30, 2020. - Kuwait today swore in its new emir, Sheikh Nawaf al-Ahmad Al-Sabah, after the death of his half-brother, Sheikh Sabah, who died in the US at the age of 91. (Photo by Yasser Al-Zayyat / AFP) (Photo by YASSER AL-ZAYYAT/AFP via Getty Images)

Kuwaiti Emir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah died Sept. 29, leaving behind a legacy of diplomacy and positive feelings in Kuwait, the Middle East and around the world. He had a reputation for being the “wise man of the region,” and in recent years worked tirelessly to end the rift within the Gulf Cooperation Council (GCC). A week earlier, US President Donald Trump awarded the 91-year-old ruler one of the more rare and prestigious awards given by the White House; the last one had been granted three decades ago. The White House praised Sheikh Sabah's “tireless mediation of disputes.”

Sabah’s death occurred as Kuwait recorded over 100,000 cases of the coronavirus and could face one of the worst economic crunches among Gulf states. Deutsche Bank has estimated Kuwait’s $140 billion economy could shrink by 7.8% this year.

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