Kuwait

 

Bureau of Near Eastern Affairs                                                
June 2007                                                                     
                                                                       
  Background Note: Kuwait                                                     
                                                  
  A family relaxes by the seafront in                                         
  Kuwait City, Kuwait, January 16,                                            
  2001. [© AP Images]                                                         
                                                                       
  Flag of Kuwait is three equal horizontal bands of green - top - white, and  
  red, with black trapezoid based on hoist side.                              
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  State of Kuwait                                                             
                                                                       
  Geography                                                                   
  Area: 17,820 sq. km. (6,880 sq. mi.); approximately the size of the State of
  New Jersey.                                                                 
  Cities: Capital--Kuwait City.                                               
  Terrain: Almost entirely flat desert plain (highest elevation point--306 m).
  Climate: Summers are intensely hot and dry with average highs ranging from 42
  o-49oC (108o-120oF); winters are short (Dec.-Feb.) and cool, averaging 10o-30
  oC (50o-80oF), with limited rain.                                           
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Kuwaiti(s).                                
  Population (Dec. 2006 est.): 3,182,960, including approximately 1 million   
  Kuwaiti citizens and 2 million non-Kuwaiti citizens.                        
  Annual growth rate (2006 est.): 3.52%.                                      
  Ethnic groups: Kuwaiti 35%, other Arab 22%, non-Arab (primarily Asian) 39%, 
  stateless Arabs (bidoon) 4%.                                                
  Religion: Muslim estimated 80% (Sunni 70%, Shi'a 30% among Kuwaitis), with  
  sizable Hindu, Christian, Buddhist, and Sikh communities.                   
  Languages: Arabic (official), English is widely spoken.                     
  Education: Compulsory from ages 6-14; free at all levels for Kuwaitis,      
  including higher education. Adult literacy (age 15 and over)--83.5% for the 
  overall population (male 85.1%, female 81.7%), 91.2% for Kuwaitis (male     
  91.4%, female 90.8%).                                                       
  Health: Infant mortality rate (2006 est.)--9.71 deaths/1,000 live births.   
  Life expectancy (2006 est.)--76.13 yrs. male, 78.31 yrs. female.            
  Work force (official figures as of December 31, 2006): 1.963 million (76%   
  male; 24% female; 17% Kuwaiti citizens).                                    
                                                                       
  Government                                                                  
  Type: Constitutional hereditary emirate.                                    
  Independence: June 19, 1961 (from U.K.).                                    
  Constitution: Approved and promulgated November 11, 1962.                   
  Branches: Executive--Amir (head of state); prime minister (head of          
  government); Council of Ministers (cabinet) is appointed by prime minister  
  and approved by the Amir. Legislative--unicameral National Assembly (Majlis 
  al-'Umma) of 50 elected members who serve 4-year terms plus all ministers,  
  who serve as ex officio members. Judicial--High Court of Appeal.            
  Administrative subdivisions: Six governorates (muhafazat): Al 'Asimah,      
  Hawalli, Al Ahmadi, Al Jahra', Mubarak Al-Kebir, and Al Farwaniyah.         
  Political parties: None; formal political parties have no legal status,     
  although de facto political blocs exist.                                    
  Elections: There are no executive branch elections; the Amir is hereditary; 
  prime minister and crown prince are appointed by the Amir. Legislative branch
  elections were last held June 29, 2006. Municipal Council elections were held
  on April 4, 2006.                                                           
  Suffrage: Adult males and since May 16, 2005, adult females who are 21, have
  been citizens for 20 years, and are not in the security forces. In June 2006,
  women participated as voters and candidates in parliamentary elections for  
  the first time.                                                             
                                                                       
  Economy                                                                     
  GDP (2005 est.): $74.6 billion.                                             
  Real GDP growth rate (2005): 8.5%.                                          
  Natural resources: Oil, natural gas, fish.                                  
  Agriculture (about 0.5% of GDP): With the exception of fish, most food is   
  imported. Cultivated land--1%.                                              
  Industry (about 48% of GDP): Types--petroleum extraction and refining,      
  fertilizer, chemicals, desalination, construction materials.                
  Services (about 52% of GDP): public administration, finance, real estate,   
  trade, hotels and restaurants.                                              
  Trade (2005 est.): Exports --$46.87 billion: oil (93%). Major markets--Japan
  17%, South Korea 13%, U.S. 11%, Singapore 10%, Pakistan 3%. Imports--$15.67 
  billion: food, construction materials, vehicles and parts, clothing. Major  
  suppliers--U.S. 13%, Germany 13%, Japan 8%, China 6%, United Kingdom 6%.    
                                                                       
  PEOPLE                                                                      
  Over 90% of the population lives within a 500-square kilometer area         
  surrounding Kuwait City and its harbor. Although the majority of people     
  residing in the State of Kuwait are of Arab origin, fewer than half are     
  originally from the Arabian Peninsula. The discovery of oil in 1938 drew many
  Arabs from nearby states. Following the liberation of Kuwait from Iraqi     
  occupation in 1991, the Kuwaiti Government undertook a serious effort to    
  reduce the expatriate population by specifically limiting the entry of      
  workers from nations whose leaders had supported Iraq during the Gulf War.  
  Kuwait later abandoned this policy, and it currently has a sizable foreign  
  labor force (approximately 68% of the total population is non-Kuwaiti).     
                                                                       
  Of the country's total population of 3.1 million, approximately 80% are     
  Muslims, including nearly all of its1.023 million citizens. While the       
  national census does not distinguish between Sunni and Shi'a adherents,     
  approximately 70-75 % of citizens, including the ruling family, belong to the
  Sunni branch of Islam. The remaining Kuwaiti citizens, with the exception of
  about 100-200 Christians and a few Baha'is, are Shi'a. The expatriate       
  Christian population is estimated to be more than 400,000 residents. There  
  also are communities of Hindus, Buddhists, and Sikhs.                       
                                                                       
  Kuwait's 83.5% literacy rate, one of the Arab world's highest, is the result
  of extensive government support for the education system. Public school     
  education, including Kuwait University, is free, but access is restricted for
  foreign residents. The government sponsors the foreign study of qualified   
  students abroad for degrees not offered at Kuwait University. In 2004,      
  approximately 1,720 Kuwaitis were enrolled in U.S. universities, down 6.8%  
  from the previous year.                                                     
                                                                       
  HISTORY                                                                     
  Archaeological finds on Failaka, the largest of Kuwait's nine islands,      
  suggest that Failaka was a trading post at the time of the ancient Sumerians.
  Failaka appears to have continued to serve as a market for approximately    
  2,000 years, and was known to the ancient Greeks. Despite its long history as
  a market and sanctuary for traders, Failaka appears to have been abandoned as
  a permanent settlement in the 1st century A.D. Kuwait's modern history began
  in the 18th century with the founding of the city of Kuwait by the Uteiba, a
  subsection of the Anaiza tribe, who are believed to have traveled north from
  Qatar.                                                                      
                                                                       
  Threatened in the 19th century by the Ottoman Turks and various powerful    
  Arabian Peninsula groups, Kuwait sought the same treaty relationship Britain
  had already signed with the Trucial States (UAE) and Bahrain. In January    
  1899, the ruler Sheikh Mubarak Al Sabah--"the Great"--signed an agreement   
  with the British Government that pledged himself and his successors neither 
  to cede any territory, nor to receive agents or representatives of any      
  foreign power without the British Government's consent, in exchange for     
  protection and an annual subsidy. When Mubarak died in 1915, the population 
  of Kuwait of about 35,000 was heavily dependent on shipbuilding (using wood 
  imported from India) and pearl diving.                                      
                                                                       
  Mubarak was succeeded as ruler by his sons Jabir (1915-17) and Salim        
  (1917-21). Kuwait's subsequent rulers have descended from these two brothers.
  Sheikh Ahmed al-Jabir Al Sabah ruled Kuwait from 1921 until his death in    
  1950, a period in which oil was discovered and in which the government      
  attempted to establish the first internationally recognized boundaries; the 
  1922 Treaty of Uqair set Kuwait's border with Saudi Arabia and also         
  established the Kuwait-Saudi Arabia Neutral Zone, an area of about 5,180 sq.
  km. (2,000 sq. mi.) adjoining Kuwait's southern border.                     
                                                                       
  Kuwait achieved independence from the British under Sheikh Ahmed's successor,
  Sheikh Abdullah al-Salim Al Sabah. By early 1961, the British had already   
  withdrawn their special court system, which handled the cases of foreigners 
  resident in Kuwait, and the Kuwaiti Government began to exercise legal      
  jurisdiction under new laws drawn up by an Egyptian jurist. On June 19, 1961,
  Kuwait became fully independent following an exchange of notes with the     
  United Kingdom.                                                             
                                                                       
  Kuwait enjoyed an unprecedented period of prosperity under Amir Sabah       
  al-Salim Al Sabah, who died in 1977 after ruling for 12 years. Under his    
  rule, Kuwait and Saudi Arabia signed an agreement dividing the Neutral Zone 
  (now called the Divided Zone) and demarcating a new international boundary. 
  Both countries share equally the Divided Zone's petroleum, onshore and      
  offshore. The country was transformed into a highly developed welfare state 
  with a free market economy.                                                 
                                                                       
  In August 1990, Iraq attacked and invaded Kuwait. Kuwait's northern border  
  with Iraq dates from an agreement reached with Turkey in 1913. Iraq accepted
  this claim in 1932 upon its independence from Turkey. However, following    
  Kuwait's independence in 1961, Iraq claimed Kuwait, arguing that Kuwait had 
  been part of the Ottoman Empire subject to Iraqi suzerainty. In 1963, Iraq  
  reaffirmed its acceptance of Kuwaiti sovereignty and the boundary it agreed 
  to in 1913 and 1932, in the "Agreed Minutes between the State of Kuwait and 
  the Republic of Iraq Regarding the Restoration of Friendly Relations,       
  Recognition, and Related Matters."                                          
                                                                       
  Following several weeks of aerial bombardment, a UN-mandated coalition led by
  the United States began a ground assault in February 1991 that liberated    
  Kuwait. During the 7-month occupation by Iraq, the Amir, the Government of  
  Kuwait, and many Kuwaitis took refuge in Saudi Arabia and other nations. The
  Amir and the government successfully managed Kuwaiti affairs from Saudi     
  Arabia, London, and elsewhere during the period, relying on substantial     
  Kuwaiti investments available outside Kuwait for funding and war-related    
  expenses.                                                                   
                                                                       
  Following liberation, the UN, under Security Council Resolution 687,        
  demarcated the Iraq-Kuwait boundary on the basis of the 1932 and the 1963   
  agreements between the two states. In November 1994, Iraq formally accepted 
  the UN-demarcated border with Kuwait, which had been further spelled out in 
  UN Security Council Resolutions 773 and 883.                                
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  Kuwait is a constitutional, hereditary emirate ruled by princes (Amirs) who 
  have been drawn from the Al Sabah family since the middle of the 18th       
  century. The 1962 constitution provides for an elected National Assembly and
  details the powers of the branches of government and the rights of citizens.
  Under the Constitution, the National Assembly has a limited role in approving
  the Amir's choice of the Crown Prince, who succeeds the Amir upon his death.
  If the National Assembly rejects his nominee, the Amir then submits three   
  names of qualified candidates from among the direct descendants of Mubarak  
  the Great, the founder of modern Kuwait, from which the Assembly must choose
  the new Crown Prince. Successions have been orderly since independence. In  
  January 2006, the National Assembly played a symbolically important role in 
  the succession process, which was seen as an assertion of parliament's      
  constitutional powers.                                                      
                                                                       
  For almost 40 years, the Amir appointed the Crown Prince as Kuwait's Prime  
  Minister. However, in July 2003, the Amir formally separated the two        
  positions and appointed a different ruling family member as Prime Minister. 
                                                                       
  Kuwait's first National Assembly was elected in 1963, with follow-on        
  elections held in 1967, 1971, and 1975. From 1976 to 1981, the National     
  Assembly was suspended. Following elections in 1981 and 1985, the National  
  Assembly was again dissolved. Fulfilling a promise made during the period of
  Iraqi occupation, the Amir held new elections for the National Assembly in  
  1992. In May 1999 and once again in May 2006, the Amir dissolved the National
  Assembly, but complied with the constitution by holding new elections within
  60 days. The most recent general election, held in June 2006, was considered
  free and fair and was marked by the participation of women for the first time
  as voters and candidates who introduced social and educational issues to the
  political debate. In July 2006 the newly elected legislature passed a law to
  reduce the number of electoral districts from 25 to 5 in a move that        
  reformers hoped would increase the transparency of the democratic process by
  increasing the number of votes necessary to win a seat in parliament.       
                                                                       
  The government does not officially recognize political parties; however, de 
  facto political blocs, typically organized along ideological lines, exist and
  are active in the National Assembly. Although the Amir maintains the final  
  word on most government policies, the National Assembly plays a real role in
  decision-making, with powers to initiate legislation, question ("grill")    
  cabinet ministers, and express lack of confidence in individual ministers.  
  For example, in May 1999, the Amir issued several landmark decrees dealing  
  with women's suffrage, economic liberalization, and nationality. The National
  Assembly later rejected all of these decrees as a matter of principle and   
  then reintroduced most of them as parliamentary legislation. In May 2005, the
  National Assembly approved legislation granting women full political rights.
  Subsequently the Prime Minister appointed Kuwait's first female minister, Dr.
  Masouma Al-Mubarak, as Planning Minister and Minister of State for          
  Administrative Development Affairs, and the government appointed two women to
  Kuwait's Municipal Council. Following the March 2007 resignation of the     
  cabinet, Dr. Masouma was joined by a second woman, Nouriya Subih, in the    
  cabinet.                                                                    
                                                                       
  Principal Government Officials                                              
  Amir--His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah                  
  Crown Prince--His Highness Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah          
  Prime Minister--His Highness Sheikh Nasser Al-Mohammed Al-Sabah             
  First Deputy Prime Minister, Minister of Defense, and Minister of           
  Interior--Sheikh Jaber Al-Mubarak Al-Sabah                                  
  Deputy Prime Minister and Minister of State for Cabinet Affairs--Faisal     
  Mohammed Al-Hajji                                                           
  Deputy Prime Minister and Foreign Minister--Sheikh Dr. Mohammad Sabah       
  Al-Salim Al-Sabah                                                           
  National Assembly Speaker--Jassem Al-Khorafi                                
  Ambassador to the United States--Sheikh Salim Al-Abdullah Al-Jaber Al Sabah 
  Permanent Representative to the United Nations--Ambassador Abdullah Al-Murad
                                                                       
  Kuwait maintains an embassy in the United States at 2940 Tilden Street NW,  
  Washington, DC 20008 (tel. [1] (202)-966-0702).                             
                                                                       
  ECONOMY                                                                     
  Kuwait has a small, relatively open economy dominated by the oil industry and
  government sector. Approximately 90% of the Kuwaiti citizen labor force works
  in the public sector, and 90% of private sector workers are non-Kuwaitis.   
  Kuwait's proven crude oil reserves of about 101.5 billion barrels--9% of    
  world reserves--account for nearly 60% of GDP, 95% of export revenues, and  
  80-90% of government income. During the 1970s, Kuwait benefited from the    
  dramatic rise in oil prices, which Kuwait actively promoted through its     
  membership in the Organization of Petroleum Exporting Countries (OPEC). The 
  economy suffered from the triple shock of a 1982 securities market crash, the
  mid-1980s drop in oil prices, and the 1990 Iraqi invasion and occupation. The
  Kuwaiti Government-in-exile depended upon its $100 billion in overseas      
  investments during the Iraqi occupation to help pay for the reconstruction. 
  Thus, by 1993, this balance was cut to less than half of its pre-invasion   
  level. The wealth of Kuwait is based primarily on oil and capital reserves, 
  and the Iraqi occupation severely damaged both, although both have been     
  restored as reconstruction has proceeded and world oil prices have risen.   
  Kuwait enjoyed an economic boom following Operation Iraqi Freedom as many   
  companies working in Iraq established offices in Kuwait and procured goods  
  through Kuwaiti companies. The banking, financial services, logistics,      
  telecommunications, and construction sectors, in particular, have grown in  
  the last two years. The sustained high oil prices also provided the Kuwaiti 
  Government with windfall revenues in 2005 and 2006.                         
                                                                       
  In the closing hours of the Gulf War in February 1991, the Iraqi occupation 
  forces set ablaze or damaged 749 of Kuwait's oil wells. Kuwait spent more   
  than $5 billion to repair oil infrastructure damage. Oil production was 1.5 
  million barrels per day (bpd) by the end of 1992, and pre-war capacity was  
  restored in 1993. Kuwait's current production capacity is estimated to be 2.5
  million bpd. Kuwait plans to increase its capacity to 3.5 million bpd by 2015
  and 4.0 million bpd by 2020.                                                
                                                                       
  Oil                                                                         
  In 1934, the ruler of Kuwait granted an oil concession to the Kuwait Oil    
  Company (KOC), jointly owned by the British Petroleum Company and Gulf Oil  
  Corporation. In 1976, the Kuwaiti Government nationalized KOC. The following
  year, Kuwait took over part of onshore production in the Divided Zone between
  Kuwait and Saudi Arabia. Kuwait Gulf Oil Company (KGOC) produces jointly    
  there with Saudi Arabian Chevron, which, by its 1984 purchase of Getty Oil  
  Company, acquired the Saudi Arabian onshore concession in the Divided Zone. 
  Saudi Arabian Chevron's concession is due to expire in February 2009.       
                                                                       
  Offshore in the Divided Zone, the Arabian Oil Company (AOC)--80% owned by   
  Japanese interests and 10% each by the Kuwaiti and Saudi                    
  Governments--produced on behalf of both countries from 1961 until 2000, when
  its concession in the Saudi zone expired. AOC gave up its drilling rights in
  the Kuwaiti sector 3 years later. KGOC has assumed AOC's offshore operations.
  Aramco Gulf Oil Company (AGOC) manages the Saudi portion of the offshore    
  Divided Zone.                                                               
                                                                       
  Kuwait Petroleum Corporation (KPC), an integrated, state-owned oil company, 
  is the parent company of the government's operating companies in the        
  petroleum sector, and includes Kuwait Oil Company, which produces oil and   
  gas; Kuwait National Petroleum Company, which manages refining and domestic 
  sales; Petrochemical Industries Company, which produces ammonia, urea,      
  ethylene, propylene, and styrene and participates in a number of successful 
  joint ventures with Dow Chemical within Kuwait and abroad; Kuwait Foreign   
  Petroleum Exploration Company, which is responsible for exploration and     
  upstream production outside Kuwait (in several developing countries and     
  Australia); Kuwait Oil Tanker Company.; Kuwait Gulf Oil Company, responsible
  for exploration and production in the Kuwait portions of the offshore and   
  onshore Divided Zone; and Kuwait Petroleum International, which manages     
  refining and retail operations outside Kuwait (in Europe and East Asia).    
                                                                       
  KPC purchased from Gulf Oil Co. refineries in the Netherlands and Italy and 
  service stations in the Benelux nations, Italy, and Scandinavia. In 1987, KPC
  bought a 19% share in British Petroleum, which was later reduced to 10%. KPC
  markets its products in Europe under the brand name Q8. In 2006, KPC        
  announced plans to participate in a joint venture to build and operate a    
  refinery and associated petrochemical plant in China. The Government of     
  Kuwait also signed a memorandum of agreement with the State of Louisiana in 
  2006 to explore the feasibility of building a refinery in the United States.
                                                                       
  According to official OPEC figures, Kuwait has about 101.5 billion barrels of
  proven oil reserves, including the Kuwaiti share of proven reserves in the  
  Divided Zone. This gives Kuwait the fifth-largest oil reserves in the world 
  after Saudi Arabia, Canada, Iran, and Iraq. Estimated capacity before the   
  occupation was about 2.4 million bpd. During the Iraqi occupation, Kuwait's 
  oil-producing capacity was severely reduced. However, tremendous recovery and
  improvements have been made. Oil production was 1.5 million bpd by the end of
  1992, and pre-war capacity was restored in 1993. Kuwait's production capacity
  is estimated to be 2.5 million bpd. Kuwait plans to increase its capacity to
  3.5 million bpd by 2015 and 4.0 million bpd by 2020. Oil revenues comprise  
  about 95% of exports and 90% of total government revenues. Kuwaiti export   
  crude averaged about $58/barrel in 2006.                                    
                                                                       
  Social Benefits                                                             
  The government has sponsored many social welfare, public works, and         
  development plans financed with oil and investment revenues. Among the      
  benefits for Kuwaiti citizens are retirement income, marriage bonuses,      
  housing loans, virtually guaranteed employment, free medical services, and  
  education at all levels. By Amiri decree, the government occasionally       
  disburses a portion of its budget surplus as a grant to all Kuwaiti citizens.
  In September 2006, an Amiri grant of 200 Kuwaiti dinars (approximately $700)
  was paid to every citizen who applied. Foreign nationals residing in Kuwait 
  do not have access to these welfare services. The right to own stock in     
  publicly traded companies, real estate, and banks or a majority interest in a
  business is limited to Kuwaiti citizens, and citizens of Gulf Cooperation   
  Council (GCC) states under limited circumstances.                           
                                                                       
  Industry and Development                                                    
  Industry in Kuwait consists of several large export-oriented petrochemical  
  units, oil refineries, and a range of small manufacturers. It also includes 
  large water desalinization, ammonia, desulphurization, fertilizer, brick,   
  block, and cement plants. During the invasion, the Iraqis looted nearly all 
  movable equipment of value, especially high-technology items and small      
  machinery. Much of this has been replaced with newer equipment. The Kuwaiti 
  Government has promoted the Trade and Investment Framework (TIFA) agreement,
  signed with the U.S. in 2004, as a means to attract additional foreign      
  investment into Kuwaiti industries and enhance the country's diversification
  from a purely oil-based economy.                                            
                                                                       
  Agriculture                                                                 
  Agriculture is limited by the lack of water and arable land. The government 
  has experimented in growing food through hydroponics and carefully managed  
  farms. However, most of the soil which was suitable for farming in south    
  central Kuwait was destroyed when Iraqi troops set fire to oil wells in the 
  area and created vast "oil lakes." Fish and shrimp are plentiful in         
  territorial waters, and large-scale commercial fishing has been undertaken  
  locally and in the Indian Ocean.                                            
                                                                       
  Shipping                                                                    
  The Kuwait Oil Tanker Company has 24 crude oil, liquefied petroleum gas, and
  refined product carriers and is the largest tanker company in an OPEC       
  country. Kuwait also is a member of the United Arab Shipping Company.       
                                                                       
  Trade, Finance, and Aid                                                     
  The Kuwaiti dinar is a strong currency which was pegged from 2003 until May 
  2007 to the U.S. dollar. The dinar is now pegged to a basket of currencies, 
  of which the dollar is a majority. Kuwait ordinarily runs a current account 
  surplus, estimated at $40 billion for 2006 (about 45% of GDP). Government   
  revenues are dependent on oil revenues. In 2006, Kuwait's fiscal surplus was
  estimated to be about 20% of GDP, despite a 16% rise in government          
  expenditure.                                                                
                                                                       
  The government's two reserve funds--the Fund for Future Generations and the 
  General Reserve Fund--which totaled nearly $100 billion prior to the invasion
  in 1990, were the primary source of capital for the Kuwaiti Government during
  the war. While these funds were depleted to $40-$50 billion after the war,  
  total external assets, including the two reserve funds and the Public Fund  
  for Social Security, are currently estimated to be around $160 billion. The 
  bulk of this is invested in the United States, Germany, the United Kingdom, 
  France, Japan, and Southeast Asia. In order of importance, foreign assets are
  believed to be invested in stocks and bonds, fixed yield instruments (mostly
  short term), and real estate. Kuwait follows a generally conservative       
  investment policy.                                                          
                                                                       
  Kuwait has been a major source of foreign economic assistance to other states
  through the Kuwait Fund for Arab Economic Development (KFAED), an autonomous
  state institution created in 1961 on the pattern of Western and international
  development agencies and chaired by the Foreign Minister. In 1974, the fund's
  lending mandate was expanded to include all non-Arab, developing countries. 
  According to the most recent statistics available, the Fund's paid-up capital
  amounts to $7 billion. Total loan disbursement extended is $37 billion. The 
  Fund has granted 595 loans since its inception and extended technical       
  assistance on 196 occasions to different countries and organizations in     
  Africa, Asia, Europe, and Latin America. KFAED is responsible for           
  administering the disbursal of at least $500 million in concessionary loans 
  to Iraq in support of reconstruction efforts.                               
                                                                       
  Over the years Kuwait has provided aid to Egypt, Syria, and Jordan, as well 
  as the Palestinian Authority. During the Iran-Iraq war, Kuwait also gave    
  significant aid to the Iraqis. The Kuwait fund issued loans and technical   
  assistance grants totaling over $419 million during its fiscal year ending  
  March 31, 2003. Kuwaiti provided unparalleled assistance during Operation   
  Iraqi Freedom by establishing and operating the Humanitarian Operations     
  Center for Iraq. Following the Israel-Lebanon conflict in 2006, Kuwait      
  pledged $300 million for humanitarian aid and deposited $500 million in the 
  Lebanese Central Bank.                                                      
                                                                       
  At the 2003 Madrid Conference, the Government of Kuwait pledged $1.5 billion
  in assistance to Iraq. KFAED is responsible for disbursing and overseeing as
  much as $560 million of that assistance through grants. In 2005, KFAED      
  contributed $50 million to Pakistan earthquake relief, contributed $50      
  million for Hurricane Katrina relief, and made significant contributions to 
  tsunami relief efforts. Kuwaiti has also supported the establishment of the 
  International Compact for Iraq.                                             
                                                                       
  FOREIGN RELATIONS                                                           
  Following independence in June 1961, Kuwait faced its first major foreign   
  policy problem arising from Iraqi claims to Kuwait's territory. The Iraqis  
  threatened invasion but were dissuaded by the U.K.'s ready response to the  
  Amir's request for assistance. Kuwait presented its case before the United  
  Nations and preserved its sovereignty. U.K. forces were later withdrawn and 
  replaced by troops from Arab League nations, which were withdrawn in 1963 at
  Kuwait's request.                                                           
                                                                       
  On August 2, 1990, Iraq invaded and occupied Kuwait. Through U.S. efforts, a
  multinational coalition was assembled, and, under UN auspices, initiated    
  military action against Iraq to liberate Kuwait. Arab states, especially the
  other five members of the Gulf Cooperation Council (Saudi Arabia, Bahrain,  
  Qatar, Oman, and the United Arab Emirates), Egypt, and Syria, supported     
  Kuwait by sending troops to fight with the coalition. Many European and East
  Asian states sent troops, equipment, and/or financial support.              
                                                                       
  After liberation, Kuwait concentrated its foreign policy efforts on         
  development of ties to states which had participated in the multinational   
  coalition. Notably, these states were given the lead role in Kuwait's       
  reconstruction. Kuwait's relations with those nations that supported Iraq,  
  among them Jordan, Sudan, Yemen, and Cuba, were slow to recover. Palestine  
  Liberation Organization (PLO) Chairman Yasir Arafat's support for Saddam    
  Hussein during the war also affected Kuwait's attitudes toward the PLO though
  Kuwait supports the Arab-Israeli peace process.                             
                                                                       
  The Government of Kuwait has abandoned its previous policy of limiting the  
  entry of workers from nations whose leaders had supported Iraq during the   
  Gulf War. In August 2001, the Interior Minister announced that there were no
  longer any special restrictions or permits required for Palestinian workers 
  wishing to return to the country. At the end of 2002, there were            
  approximately 30,000 to 40,000 Palestinians, 30,000 to 40,000 Jordanians, and
  5,000 Yemenis resident in Kuwait.                                           
                                                                       
  Since liberation from Iraq, Kuwait has made efforts to secure allies        
  throughout the world, particularly UN Security Council members. In addition 
  to the United States, defense arrangements have been concluded with the     
  United Kingdom, Russia, and France. Ties to other key Arab members of the   
  Gulf War coalition--Egypt and Syria--also have been sustained.              
                                                                       
  During the 2002-03 buildup to and execution of Operation Iraqi Freedom (OIF),
  Kuwait was a vital coalition partner, reserving a full 60% of its total land
  mass for use by coalition forces and donating significant assistance in kind
  to the effort. Kuwait continues to provide generous assistance in kind to   
  ongoing coalition operations in Iraq. Kuwait has been consistently involved 
  in reconstruction efforts in Iraq, pledging $1.5 billion at the October 2003
  international donors' conference in Madrid, and consulting closely with Iraqi
  officials, including former Prime Minister Ibrahim Jaffari, who visited     
  Kuwait in late October 2005, and Prime Minister Nuri al-Maliki, who visited 
  in July 2006 and again in April 2007. Kuwait has been an active and vocal   
  public supporter of the political process in Iraq, welcoming the January 2005
  elections and praising Iraq's October 2005 successful constitutional        
  referendum. Iraqi President Talibani visited Kuwait in September 2006.      
                                                                       
  Kuwait is a member of the UN and some of its specialized and related        
  agencies, including the World Bank (IBRD), International Monetary Fund (IMF),
  World Trade Organization (WTO), General Agreement on Tariffs and Trade      
  (GATT); African Development Bank (AFDB), Arab Fund for Economic and Social  
  Development (AFESD), Arab League, Arab Monetary Fund (AMF), Council of Arab 
  Economic Unity (CAEU), Economic and Social Commission for Western Asia      
  (ESCWA), Group of 77 (G-77), Gulf Cooperation Council (GCC), INMARSAT,      
  International Development Association (IDA), International Finance          
  Corporation, International Fund for Agricultural Development, International 
  Labor Organization (ILO), International Maritime Organization, Interpol, IOC,
  Islamic Development Bank (IDB), International Federation of Red Cross and Red
  Crescent Societies, Non-Aligned Movement, Organization of Arab Petroleum    
  Exporting Countries (OAPEC), Organization of the Islamic Conference (OIC),  
  Organization of Petroleum Exporting Countries (OPEC), and the International 
  Atomic Energy Agency (IAEA).                                                
                                                                       
  DEFENSE                                                                     
  Before the Gulf War, Kuwait maintained a small military force consisting of 
  army, navy, and air force units. The majority of equipment for the military 
  was supplied by the United Kingdom. Aside from the few units that were able 
  to escape to Saudi Arabia, including a majority of the air force, all of this
  equipment was either destroyed or taken by the Iraqis. Much of the property 
  returned by Iraq after the Gulf War was damaged beyond repair. Iraq retained
  a substantial amount of captured Kuwaiti military equipment in violation of 
  UN resolutions.                                                             
                                                                       
  Since liberation, Kuwait, with the help of the United States and other      
  allies, has made significant efforts to increase the size and modernity of  
  its armed forces. These efforts are succeeding. The government also continues
  to improve defense arrangements with other Arab states, as well as UN       
  Security Council members. During Operation Iraqi Freedom, in 2003, Kuwaiti  
  military elements successfully operated missile defense systems.            
                                                                       
  A separately organized National Guard maintains internal security. The police
  constitute a single national force under the purview of civilian authorities
  of the Ministry of Interior.                                                
                                                                       
  U.S.-KUWAITI RELATIONS                                                      
  The United States opened a consulate in Kuwait in October 1951, which was   
  elevated to embassy status at the time of Kuwait's independence 10 years    
  later. The United States supports Kuwait's sovereignty, security, and       
  independence, as well as its multilateral diplomatic efforts to build greater
  cooperation among the GCC countries.                                        
                                                                       
  Strategic cooperation between the United States and Kuwait increased in 1987
  with the implementation of a maritime protection regime that ensured the    
  freedom of navigation through the Gulf for 11 Kuwaiti tankers that were     
  reflagged with U.S. markings.                                               
                                                                       
  The U.S.-Kuwaiti strategic partnership intensified dramatically again after 
  Iraq's invasion of Kuwait. The United States spearheaded UN Security Council
  demands that Iraq withdraw from Kuwait and its authorization of the use of  
  force, if necessary, to remove Iraqi forces from the occupied country. The  
  United States also played a dominant role in the development of the         
  multinational military operations Desert Shield and Desert Storm that       
  liberated Kuwait. The U.S.-Kuwaiti relationship has remained strong in the  
  post-Gulf War period. Kuwait and the United States worked on a daily basis to
  monitor and to enforce Iraq's compliance with UN Security Council           
  resolutions, and Kuwait has also provided the main platform for Operation   
  Iraqi Freedom since 2003.                                                   
                                                                       
  Since Kuwait's liberation, the United States has provided military and      
  defense technical assistance to Kuwait from both foreign military sales (FMS)
  and commercial sources. The U.S. Office of Military Cooperation in Kuwait is
  attached to the American embassy and manages the FMS program. There are     
  currently over 100 open FMS contracts between the U.S. military and the     
  Kuwait Ministry of Defense totaling $8.1 billion. Principal U.S. military   
  systems currently purchased by the Kuwait Defense Forces are Patriot Missile
  systems, F-18 Hornet fighters, the M1A2 main battle tank, AH-64D Apache     
  helicopter, and a major recapitalization of Kuwait's Navy with U.S. boats.  
                                                                       
  Kuwaiti attitudes toward American products have been favorable since the Gulf
  War. In 1993, Kuwait publicly announced abandonment of the secondary and    
  tertiary aspects of the Arab boycott of Israel (those aspects affecting U.S.
  firms). The United States is currently Kuwait's largest supplier of goods and
  services, and Kuwait is the fifth-largest market in the Middle East. U.S.   
  exports to Kuwait totaled $2.14 billion million in 2006. Provided their     
  prices are reasonable, U.S. firms have a competitive advantage in many areas
  requiring advanced technology, such as oil field equipment and services,    
  electric power generation and distribution equipment, telecommunications    
  gear, consumer goods, and military equipment.                               
                                                                       
  Kuwait also is an important partner in the ongoing U.S.-led campaign against
  international terrorism, providing assistance in the military, diplomatic,  
  and intelligence arenas and also supporting efforts to block financing of   
  terrorist groups. In January 2005, Kuwait Security Services forces engaged in
  gun battles with local extremists, resulting in fatalities on both sides in 
  the first such incident in Kuwait's history.                                
                                                                       
  Principal U.S. Officials                                                    
  Ambassador--Richard LeBaron                                                 
  Deputy Chief of Mission--vacant                                             
  Political Affairs--Donald Blome                                             
  Commercial Affairs--Erik Hunt                                               
  Economic Affairs--Timothy Lenderking                                        
  Consular Affairs--Santiago (Sonny) Busa                                     
  Management--Brian Moran                                                     
  Public Affairs--Tanya Anderson                                              
  Chief, Office of Military Cooperation--BG Charles Hudson USMC               
                                                                       
  The U.S. Embassy in Kuwait is located at Al Masjed Al Aqsa Street. Block 13,
  Bayan Plan 36302. The mailing address is P.O. Box 77, SAFAT, 13001 Safat,   
  Kuwait; or PSC 1280 APO AE 09880.                                           
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

***********************************************************
See http://www.state.gov/r/pa/bgn/ for all Background notes
************************************************************
To change your subscription, go to http://www.state.gov/misc/echannels/66822.htm