Country Facts, Kuwait

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Country Facts, Kuwait






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 href="http://www.travel.state.gov">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 href="http://www.travel.state.gov">http://www.travel.state.gov.
For    
  additional information on international
travel, see href="http://www.usa.gov/">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 href="http://www.cdc.gov/travel/index.htm">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 href="http://www.osac.gov">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 href="http://www.state.gov/r/pa/bgn/">http://www.state.gov/r/pa/bgn/ for all
Background
notes
************************************************************
To
change your subscription, go to href="http://www.state.gov/misc/echannels/66822.htm">http://www.state.gov/misc/echannels/66822.htm

 

Kuwait

Country Facts, Kuwait


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