koowītˈ, –wāt or Kowait kōˈ–, officially State of Kuwait, independent sheikhdom (1995 pop. 1,575,983), 6,177 sq mi (16,000 sq km), NE Arabian peninsula, at the head of the Persian Gulf. Kuwait is bounded by Saudi Arabia on the south and by Iraq on the north and west. The capital is Al-Kuwait, or Kuwait (1991 pop. 150,100), a modern city. The capital's port, Mina al-Ahmad, is a trade center with shipyards and oil refineries.

Land, People, and Government

The country is a low, sandy region that is generally barren and sparsely settled. It has a warm climate, dry inland and humid along the coast. The population is predominantly Arab; however, about two thirds of the population are non-Kuwaitis. Native Kuwaitis have an extremely high per capita income, pay no taxes, and enjoy numerous social services. Since the development of the oil industry, large numbers of foreigners have found employment in Kuwait. Ethnic groups include Iranians, Indians, Pakistanis, Yemenis, and Palestinians. Arabic is the official language, but English is widely spoken. Over 85% of the population is Muslim (about 45% Sunni and 40% Shi'a), and there are Christian, Hindu, and Parsi minorities. The country is a monarchy governed under a constitution promulgated in 1963. The sheikh, the hereditary monarch of the Mubarak line of the ruling al Sabah family, serves as head of state. A prime minister is appointed by the sheikh to head the government; until 2003 the prime minister traditionally was the crown prince. The unicameral national assembly has 50 members who are elected by popular vote. There are no official political parties, although several political groups act as de facto parties. Administratively, the country is divided into five governorates.

Economy

Kuwait's traditional exports were pearls and hides, but since 1946 it has become a major petroleum producer and oil now dominates the economy. The country is mostly desert, with some fertile areas near the Persian Gulf coast; there is virtually no agricultural industry.

Kuwait has the third largest oil reserves in the world after Saudi Arabia and Iraq. The main concession for oil exploitation was held by a joint British-American firm until 1974, when Kuwait took control of most of the operations; it had previously retained a large part of the oil profits. Much of the profits have been devoted to the modernization of living conditions and education in the country. The petroleum industry, which accounts for over 90% of Kuwait's export revenues, was severely damaged in the Persian Gulf War. However, by the end of 1992, the country had repaired nearly all the damage to its war-ravaged oil fields and its oil output was at about prewar levels. Huge amounts of natural gas complement Kuwait's oil production.

To provide against the possible future exhaustion of the oil reserves, in the 1960s the government launched a program of industrial diversification and overseas investment. Present industries include food processing, desalinization, construction, and the manufacture of electronics, cement, textiles, and fertilizers. Food, construction materials, vehicles, and clothing are the principal imports. Kuwait's major trading partners are the United States, Japan, European Union countries, and Singapore.

History

The development of the nation of Kuwait dates to the early 18th cent. when the town of Kuwait was founded by Arabs. The present ruling dynasty was established by Sabah abu Abdullah (ruled 1756–72). In the late 18th and early 19th cent. the sheikhdom, nominally an Ottoman province, was frequently threatened by the Wahhabis. In 1897, Kuwait was made a British protectorate. In June, 1961, the British ended their protectorate, and Kuwait became an independent sheikhdom. However, the British supplied troops in July at the request of the sheikh when Iraq claimed sovereignty over Kuwait. A short time later the British forces were replaced by detachments from the Arab League, of which Kuwait is a member. In Oct., 1963, Iraq officially recognized the nation of Kuwait.

Oil-rich Kuwait was a founding member (1961) of the Organization of Petroleum Exporting Countries (OPEC). The country's oil revenues have been used to provide financial aid to other Arab countries, and the nation became a supporter of Palestinian causes. Although Kuwait has maintained strong ties with Western nations, it also established diplomatic relations with the Soviet Union in 1963, the first of the Persion Gulf states to do so. Kuwait took part in the oil embargo against nations that had supported Israel during the 1973 Arab-Israeli War, and during the war Kuwaiti troops stationed in Egypt along the Suez Canal fought against Israeli forces. In 1981, Kuwait became a founding member of the Gulf Cooperation Council (GCC).

Kuwait supported Iraq during the Iran-Iraq War, which caused the country's oil income to decrease by nearly 50%. An oil refinery was attacked by Iran in 1982, Kuwaiti tankers in the Persian Gulf came under Iranian fire, and Iran instigated terrorist activity in Kuwait through radical Muslim groups. An assassination attempt on Sheikh al Sabah occurred in May, 1985. In 1987, Kuwait sought U.S. protection for its oil tankers in the Persian Gulf; U.S. forces patrolled the gulf's waters until the end of the war in 1988.

In 1989, Iraqi President Saddam Hussein accused Kuwait of flooding the international oil market and consequently forcing oil prices down. Iraq invaded Kuwait on Aug. 2, 1990, and Hussein declared Kuwait annexed. Many native Kuwaitis, including the royal family, fled. Western and Arab coalition forces, the largest part of which were American, drove Iraqi forces from Kuwait in the Persian Gulf War. Thousands of foreign workers who were based in Kuwait fled to Iran, Turkey, and Jordan, or were housed in temporary refugee camps throughout the Middle East. Iraqi forces devastated the country, setting fire to Kuwaiti oil wells before retreating. Over 80% of all wells were destroyed or damaged, causing phenomenal environmental hazards. The sheikh returned to Kuwait from Saudi Arabia in Mar., 1991. The Palestinians remaining in Kuwait after the war were expelled because of the Palestine Liberation Organization 's support of Iraq.

In the war's wake, Kuwait concentrated on restoring its oil industry and on rebuilding the country. Parliamentary elections in 1992 resulted in the victory of a majority of the opposition candidates, but despite promises of democratic reform, the al Sabah family continued to dominate the government. In Oct., 1994, Iraq massed elite troops along the border with Kuwait, but it removed them when Kuwait and the United States moved forces into the area. Parliament was dissolved by the sheikh in May, 1999; new elections held in July gave Islamist and liberal candidates the most seats. Also in 1999, the sheikh issued an edict giving Kuwaiti women the right to vote and to run for office, but parliament failed to ratify it. In the July, 2003, parliamentary elections Islamists won 42% of the seats, while liberals retained only a handful; government supporters won 28% of the seats.

Bibliography

See J. Daniels, Kuwait Journey (1971); S. Demir, The Kuwait Fund and the Political Economy of Arab Regional Development (1976); N. A. Abraham, Doing Business in Kuwait (1981); S. N. Ghabra, Palestinians in Kuwait (1987); A.-R. Assiri, Kuwait's Foreign Policy (1989).

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