Kuwait officially the State of Kuwait is a country in Western Asia. Situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, it shares borders with Iraq and Saudi Arabia. As of 2016, Kuwait has a population of 4.5 million people: 1.3 million are Kuwaitis and 3.2 million are expatriates,[ Expatriates account for 70% of the population.
Oil reserves were discovered in commercial quantities in 1938. From 1946 to 1982, the country underwent large-scale modernization. In the 1980s, Kuwait experienced a period of geopolitical instability and an economic crisis following the stock market crash. In 1990, Kuwait was invaded, and later annexed, by Saddam’s Iraq. The Iraqi occupation of Kuwait came to an end in 1991 after military intervention by a military coalition led by the United States. Kuwait is a major non-NATO ally of the United States. It is also a major ally of ASEAN, while maintaining a strong relationship with China.
Kuwait is a constitutional sovereign state with a semi-democratic political system. Kuwait has a high-income economy backed by the world’s sixth largest oil reserves. According to the World Bank, the country has the fourth highest per capita income. The Constitution was promulgated in 1962. Kuwait is home to the largest opera house in the Middle East. The Kuwait National Cultural District is a member of the Global Cultural Districts Network.
Kuwait has a petroleum-based economy, petroleum is the main export product. The Kuwaiti dinar is the highest-valued unit of currency in the world. According to the World Bank, Kuwait is the seventh richest country in the world per capita. Kuwait is the second richest GCC country per capita (after Qatar). Petroleum accounts for half of GDP and 90% of government income. Non-petroleum industries include financial services.
In the past five years, there has been a significant rise in entrepreneurship and small business start-ups in Kuwait. The informal sector is also on the rise, mainly due to the popularity of Instagram businesses.
Kuwait is a major source of foreign economic assistance to other states through the Kuwait Fund for Arab Economic Development, an autonomous state institution created in 1961 on the pattern of international development agencies. In 1974, the fund’s lending mandate was expanded to include all developing countries in the world.
In 2018 Kuwait enacted certain measures to regulate foreign labor. Citing security concerns, workers from Georgia will be subject to heightened scrutiny when applying for entry visas, and an outright ban was being imposed on the entry of domestic workers from Guinea-Bissau and Vietnam. Workers from Bangladesh are also banned.