Sheikh Sabah al-Ahmad al-Sabah, the emir of Kuwait, has accepted the recent resignation of his government, the parliament's speaker has said.

The emir also asked for the outgoing prime minister, Sheikh Nasser al-Mohammad al-Sabah, his newphew, to form a new cabinet, Jassim al-Kharafi, the parliament speaker, said on Monday.

Kuwait's cabinet tendered its resignation en mass last month, plunging the Gulf state into a political crisis and prompting speculation that the emir could dissolve the parliament.

"The emir decided to accept the resignation of the government and there are instructions to reappoint Sheikh Nasser as prime minister," al-Kharafi said.

"This is a chance to resolve the negative [issues]."

He said that no timeframe had been set for the formation of a new cabinet.

Cabinet resigns

The cabinet resigned last month in protest at a request by three Sunni parliamentarians to question the prime minister, though the emir did not immediately accept the mass resignation.

The three parliamentarians objected to the Sheikh Nasser's decision to allow a visit by an Iranian Shia cleric, who they claimed had insulted the Prophet Mohammad's companions.

The three had also wanted to question the prime minister over alleged corruption and mismanagement of funds.

The political crisis jeopardises planned economic changes, such as a plan to set up a markets regulator a bid Kuwaitis hope will reverse months of economic decline.

Poor relations

The emir dissolved parliament and called fresh elections earlier this year to resolve a previous standoff between parliament and the government, but relations do not appear to have improved.

The last assembly dedicated much time to questioning ministers and there have been multiple changes in the government lineup over the past two years.

As a result, a number of ministers have stepped down under parliamentary pressure.

The Kuwaiti parliament has dissolved five times since 1976 to avoid questioning sessions and the no-confidence votes that often follow.

Meanwhile, Kuwaitis have voiced growing frustration at the political upheavals they say are holding their country back at a time when the country is feeling the impact of the global financial crisis.