Kuwait country profile
Kuwait's economy is heavily reliant on oil, which contributes significantly to government revenue and GDP. The country has a high GDP per capita, ranking among the wealthiest in the world.
Oil-rich Kuwait is a tiny country nestling at the top of the Gulf. Flanked by powerful neighbours Saudi Arabia, Iraq and Iran, its strategic location and massive oil reserves make it one of the world's richest countries per capita.
A conservative state with a Sunni Muslim majority and a US ally, Kuwait stands out from the other Gulf monarchies for having the most open political system.
The emirate's parliament has the most powers of any elected body in the Gulf and opposition MPs openly criticise the ruling Al-Sabah family
The ruling family retains full control over key government and executive posts and the emir has the last say in political matters. He also has the power to override or dissolve parliament, and call elections.
But tensions persist between parliament and the cabinet, controlled by the Sabahs, and the government is facing increasing calls for radical political reform from the opposition.
STATE OF KUWAIT: FACTS
Capital: Kuwait city
Area: 17,818 sq km
Population: 4.4 million
Language: Arabic
Life expectancy: 78 years (men) 82 years (women)
LEADER
Emir: Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah
Sheikh Mishal became emir, aged 83, on the death of his half-brother Nawaf Al-Ahmad Al-Jaber Al-Sabah in December 2023.
His appointment earlier as crown prince (next in line to the throne) was seen as a sign that Kuwait's rulers wanted to avoid significant change, such as a transition to the next generation of leaders.
His half-brother Sheikh Nawaf became emir in 2020. He was defence minister when Iraq invaded and occupied Kuwait in 1990, sparking the beginning of the Gulf War, and later went onto serve as interior minister.
Compared to his predecessor, who served as emir for more than a decade and shaped the country's foreign policy for 50 years, Sheikh Nawaf's time as ruler was relatively short, just three years.
MEDIA
The authorities place limits on media freedom, and legislation provides for punishments for criticism of the emir and the government. State broadcasters operate alongside privately-owned outlets. Internet use is among the highest in the region.
TIMELINE
Image caption,
A multi-national force came to Kuwait's aid during the 'Desert Storm' offensive to expel Iraqi invaders in 1991
Some key dates in Kuwait's history:
1700s - Nomadic tribes from central Arabia settle in the bay of Kuwait City, among them the Al-Sabah family whose descendants now rule Kuwait.
1899 - British protectorate: Britain assumes control of foreign and defence policy amid fears of an expanding Ottoman Empire.
1930s - Oil: The discovery of massive oil reserves revolutionises the country's economy.
1961- Kuwait gains independence from Britain.
1963 - British military intervention forces Iraq to abandon its territorial claims and recognize Kuwait's independence. Kuwait becomes the first Arab country in the Gulf to establish an elected parliament.
1990-91 - First Gulf War: Iraqi invasion leads to a US-led military campaign to liberate Kuwait. A US-led and UN-backed bombing aerial campaign begins in Kuwait and Iraq. By late February 1991, allied forces reach Kuwait City. Iraqi forces torch oil wells as they pull out.
2003 - Tens of thousands of soldiers converge on the Kuwait-Iraq border for a US-led military campaign to disarm and oust Iraqi leader Saddam Hussein in Second Gulf War.
2003 - Political reform: Emir issues a landmark decree separating the post of prime minister from the crown prince.
2005 - Kuwaiti women win the right to vote and run in parliamentary elections.
2012 - Unprecedented protests call for government reforms.
2015 - Kuwait and four other Gulf states take part in Saudi-led air strikes on Houthi rebels in Yemen.
Suicide bombing at a Shia mosque in Kuwait kills 27 and injures 227 people. Islamic State claims responsibility for what is the largest terror attack in Kuwait's history.
2020 - Covid pandemic exacerbates Kuwait's economic crisis, and country rercords a budget deficit of $46bn.
Image caption,
Kuwaiti women display their passports as they vote during the September 2022 parliamentary elections
The BBC
Overview
Kuwait's economy is heavily reliant on oil, which contributes significantly to government revenue and GDP. The country has a high GDP per capita, ranking among the wealthiest in the world, thanks in part to its substantial oil reserves. However, the economy faces challenges in diversifying away from hydrocarbons and attracting foreign direct investment.
Key aspects of the Kuwaiti economy:
Oil Dependency:
Oil and gas account for over 90% of government revenue and exports.
High GDP per Capita:
Kuwait has a high GDP per capita, reflecting its wealth and well-developed welfare state.
Diversification Challenges:
The economy is struggling to diversify away from oil and attract foreign direct investment.
Economic Growth:
While experiencing negative growth in 2023 due to lower oil prices, Kuwait's GDP is projected to rebound in 2024 and 2025, driven by increased oil exports.
Government Policies:
The government is working to reduce its reliance on oil and promote a more diversified economy through various initiatives.
Labor Market:
Kuwait relies heavily on expatriate labor, particularly for low-skilled jobs.
Challenges:
The economy faces challenges related to diversification, attracting foreign investment, and managing the impact of fluctuating oil prices.
Article Talk
Kuwait has a petroleum-based economy that is classified as emerging and high-income. By various per-capita measures of economic output, Kuwait is one of the wealthiest countries in the world.
Economy of
Kuwai
Kuwait City skyline
Currency
Kuwaiti dinar (KWD)
Fiscal year
1 April – 31 March
Trade organisations
WTO, OPEC and GCC
Country group
Developing/Emerging
High-income economy
Statistics
Population
Neutral increase 4,853,420 (2023)
GDP
Decrease $301 billion (nominal, 2024 est)
Decrease $249.255 billion (PPP, 2024 est.)
GDP rank
58th (nominal, 2024)
72nd (PPP, 2024)
GDP growth
Increase -3.6% (2023)
Increase -2.7% (2024e)
Increase 3.3% (2025f)
GDP per capita
Decrease $32,289 (nominal, 2024 est.)
Decrease $51,200 (PPP, 2025 est.)
GDP per capita rank
37th (nominal, 2024)
39th (PPP, 2024)
GDP by sector
agriculture (0.4%), industry (67%), services (43.6%) (2022 est.)
Source: Wikipedia
