Kuwait

Kuwait, formally known as the State of Kuwait, is a nation located in West Asia, near the northern boundary of Eastern Arabia, at the extremity of the Persian Gulf. Kuwait, with a population of 4.93 million as of 2024—a 1.98% rise from the year before—occupies a vital location separating Iraq to the north from Saudi Arabia to the south. Comprising a coastline of around 500 kilometers along the Persian Gulf, the country has a maritime boundary with Iran.

Kuwait’s past is closely entwined with that of ancient Mesopotamia; most of its modern area previously constituted part of this birthplace of civilization. Kuwait’s economy was based on marine trade; it was essentially a regional trading port before oil deposits were found in 1938. Driven mostly by the increasing money from oil output, Kuwait underwent a fast modernizing phase between 1946 and 1982. This metamorphosis changed the geography, economics, and society of the country.

Still, the 1980s presented Kuwait with major difficulties. Following a stock market meltdown, the nation experienced geopolitical unrest and managed an economic crisis. The most extreme test came in 1990 when conflicts over oil output led Kuwait to be invaded and then taken over by Iraq under the direction of Saddam Hussein. Thanks to the involvement of an international coalition headed by the United States, Britain, France, Saudi Arabia, and Egypt, this occupation was fleeting and ended on February 26, 1991.

Kuwait’s political structure is that of an emirate, a kind of governance shared by most Arab nations in the Persian Gulf. Head of state is the emir; the Al Sabah family has traditionally controlled the political scene of the nation. Though with little democratic involvement, this style of government has given stability and continuity. Officially the state religion is Islam, more especially the Maliki school of Sunni Islam, which shapes many facets of Kuwaiti law and life.

Economically Kuwait is a high-income country, its wealth supported by the sixth-largest oil reserves in the world. Kuwait from a small trade outpost to one of the richest nations in the world has been changed by the exploration and use of these huge petroleum resources. The fact that the Kuwaiti dinar is the most valuable unit of money in the world speaks to the nation’s economic might. With a gross national income per capita ranking fifth among all countries, Kuwait is among only five that have a GNI per capita above $70,000, according to World Bank figures.

Kuwait struggles to diversify its economy notwithstanding its great resources. With the worst infrastructure and lowest percentage of economic diversification among its neighbors, it still depends most on oil in the Gulf Cooperation Council (GCC). Kuwait’s over dependence on petroleum exports exposes it to swings in world oil prices and emphasizes the pressing necessity of economic diversification.

Kuwait’s export pattern mirrors its economic system. Including oil, mineral fuels accounted for an amazing 89.1% of all exports in 2019. Additional major export categories were plastics (1.2%), organic chemicals (3.2%), and airplanes and spacecraft (4.3%). Kuwait especially dominated the world in exports of sulfonated, nitrated, and nitrosated hydrocarbons that year. With food and agricultural goods accounting for 94.2% of export goods to that country, Iraq was the largest export market for the nation.

Kuwait came 63rd out of 157 nations in the 2019 Economic Complexity Index (ECI), in terms of economic complexity. This rating shows that although Kuwait’s economy is strong, it lacks the diversity and sophistication of certain other countries, therefore stressing the necessity of more general economic growth beyond the oil industry.

Driven by security issues, Kuwait’s attitude to foreign workers has changed recently. The government has instituted policies meant to control the flood of workers from some countries. Workers from countries like Georgia, for example, are under more scrutiny throughout the visa application process; domestic workers from Guinea-Bissau and Vietnam are outright banned. The list of blacklisted nations as of April 2019 now included twenty countries, including Guinea, Bhutan, Ethiopia, and Burkina Faso. The lack of embassies and labor companies from these nations in Kuwait is mostly responsible for these limitations.

Kuwait’s travel industry is still undeveloped even with its economic strength. This is mostly owing to poor infrastructure and the national alcohol restriction, which can discourage some foreign guests. Kuwait International Airport, the main hub for international air travel, is the main portal for the nation into the globe.

Within the field of culture, Kuwait has been known as a Gulf area pioneer. Often referred to as the “Hollywood of the Gulf,” the country has produced some of the most well-known artists in the Arabian Peninsula and has the oldest contemporary arts scene there. Kuwaiti popular culture—theatre, radio, music, and television soap operas—has found an audience outside of its boundaries thanks to exports to surrounding Gulf Cooperation Council nations.

Kuwait’s impact goes beyond both culture and business. The nation is a founding member of the Gulf Cooperation Council, therefore facilitating regional collaboration and diplomacy. Kuwait also has memberships in important worldwide groups such as the Organization of the Petroleum Exporting Countries (OPEC), the Arab League, and the United Nations. These connections highlight Kuwait’s participation in world events and dedication to international cooperation.