DUBAI - Kuwait on Wednesday formed a government headed by Prime Minister Sheikh Mohammed Sabah al-Salem al-Sabah, the state news agency said, the country's first cabinet after the death of its previous ruler.

The prime minister appointed Emad Mohammed al-Atiqi as oil minister for the OPEC producer, Anwar Ali al-Mudhaf as finance minister and Abdullah Ali al-Yahya as the country's foreign minister.

Kuwait's new Emir Sheikh Meshal al-Ahmad al-Sabah, who came to power in December after his predecessor Sheikh Nawaf died, is expected to preserve Kuwaiti foreign policies including support for Gulf Arab unity, Western alliances, and good ties to Riyadh - a relationship seen as top priority.

Kuwait will have to grapple with long-running strains between the ruling family and its critics in the deadlocked and fractious parliament that critics say has hindered fiscal and economic reform.

The country's legislature wields more influence than similar bodies in other Gulf monarchies, and political deadlock has for decades led to cabinet reshuffles and dissolutions of parliament. REUTERS