The impact of the pandemic and especially lower oil prices hit the government budget hard, since more than nine-tenths of revenue comes from oil sales. However, the country also faces longer-term structural challenges that undermine project implementation.
The emir will seek to avoid fresh elections, which could bring an even more obstructionist National Assembly.
Tensions with parliament will prevent consideration of measures such as an excise tax on harmful products or a Gulf-agreed value-added tax.
The government will resist legislative pressure to scale down generous foreign aid, seen as an important source of global soft power.
The authorities could approach various government entities for dividend transfers to push back the risk of a liquidity crunch.
