Profile

State of Kuwait

Kuwait at a Glance

Location: Middle East, bordering the

Persian Gulf, between Iraq and Saudi

Arabia

Geographic Coordinates: 29 30 N, 45

45 E

Map References: Middle East

Area - Comparative: slightly smaller

than New Jersey

Terrain: flat to slightly undulating desert

plain

Capital: Kuwait City

Official language: Arabic

Population: 2,875,422 (July 2017 est.)

Government: constitutional monarchy

Establishment 19 June 1961 (from the UK)

National or Regional Currency: Kuwaiti dinar (KWD)

Area:

total: 17,818 sq km ; land: 17,818 sq

km ; water: 0 sq km

Elevation Extremes(M): lowest point: Persian Gulf 0 m ; highest point: unnamed elevation 306

m

Land Boundaries(Km): total: 475 km ; border countries: Iraq 254 km, Saudi Arabia 221 km

Coastline: 499 km

Maritime Claims: territorial sea: 12 nm

Geography - Note: strategic location at head of Persian Gulf1

History

Kuwait has been ruled by the AL-SABAH dynasty since the 18th century. The threat of Ottoman

invasion in 1899 prompted Amir Mubarak AL-SABAH to seek protection from Britain, ceding

foreign and defense responsibility to Britain until 1961, when the country attained its

independence. Kuwait was attacked and overrun by Iraq on 2 August 1990. Following several

weeks of aerial bombardment, a US-led UN coalition began a ground assault on 23 February 1991

that liberated Kuwait in four days. Kuwait spent more than $5 billion to repair oil infrastructure

damaged during 1990-91. The AL-SABAH family returned to power in 1991 and established one

of the most independent legislatures in the Arab World. The country witnessed the historic election

in 2009 of four women to its National Assembly. Amid the 2010-11 uprisings and protests across

the Arab world, stateless Arabs, known as bidoon, staged small protests in early 2011 demanding

citizenship, jobs, and other benefits available to Kuwaiti nationals. Youth activist groups' repeated

rallies in 2011 for the dismissal of a prime minister seen as being corrupt, ultimately led to his

resignation in late 2011. Demonstrations renewed in late 2012 in response to an Amiri decree

amending the electoral law. The opposition, led by a coalition of Sunni Islamists, tribalists, some

liberals, and myriad youth groups, largely boycotted legislative elections in 2012 and 2013, which

ushered in a legislature more amenable to the government's agenda. However, the opposition,

expressing strong opposition to the government’s fiscal reforms, participated in the November

2016 National Assembly election and won almost half of the positions. Since coming to power in

2006, the Amir has dissolved the National Assembly on seven occasions (the Constitutional Court

annulled the Assembly in June 2012 and again in June 2013) and shuffled the cabinet over a dozen

times, usually citing political stagnation and gridlock between the legislature and the government.2

Government

Country name: State of Kuwait

Government

type:

constitutional monarchy

Capital: Kuwait city

Administrative

divisions:

6 governorates (muhafazat, singular - muhafazah); Al Ahmadi, Al 'Asimah,

Al Farwaniyah, Al Jahra', Hawalli, Mubarak al Kabir

Independence: 19 June 1961 (from the UK)

1 http://www.economywatch.com/economic-statistics/kuwait/Geography/ 2 https://www.indexmundi.com/kuwait/background.html

National

holiday:

National Day, 25 February (1950)

Constitution: history: approved and promulgated 11 November 1962

Legal system: mixed legal system consisting of English common law, French civil law,

and Islamic religious law

Suffrage: 21 years of age and at least 20-year citizenship; universal; note - in early

2017, legislation was introduced to lower the voting age to 18 and instate

suffrage for the armed forces and police

Executive

branch:

chief of state: Amir SABAH al-Ahmad al-Jabir al-Sabah (since 29 January

2006); Crown Prince NAWAF al-Ahmad al-Jabir al-Sabah (born 25 June

1937)

head of government: Prime Minister JABIR AL-MUBARAK al-Hamad

al-Sabah (since 30 November 2011); First Deputy Prime Minister NASIR

al-Sabah al-Ahmad al-Sabah (since 12 December 2017); Deputy Prime

Ministers SABAH al-KHALD al-Sabah (since 4 August 2013), KHALD

al-Jarrah al-Sabah (since December 2016), Anas al-SALEH (since 2015)

cabinet: Council of Ministers appointed by the prime minister, approved

by the amir

elections/appointments: amir chosen from within the ruling family,

confirmed by the National Assembly; prime minister and deputy prime

ministers appointed by the amir

Legislative

branch:

description: unicameral National Assembly or Majlis al-Umma (65 seats;

50 members directly elected in multi-seat constituencies by simple majority

vote and 15 ex-officio members - cabinet ministers - appointed by the

prime minister; members serve 4-year terms)

elections: last held on 26 November 2016 (next to be held in 2020)

election results: preliminary results - opposition groups including those

linked to the Muslim Brotherhood and Salafists 24 seats, other 26

Judicial

branch:

highest court(s): Constitutional Court (consists of 5 judges); Supreme

Court or Court of Cassation (organized into several circuits, each with 5

judges)

judge selection and term of office: all Kuwaiti judges appointed by the

Amir upon recommendation of the Supreme Judicial Council, a

consultative body comprised of Kuwaiti judges and Ministry of Justice

officials

subordinate courts: High Court of Appeal; Court of First Instance;

Summary Court

Source: https://www.indexmundi.com/kuwait/government_profile.html

International Human Development Trend

Human Development Index

Year value

2010 0.792

2012 0.796

2014 0.799

2015 0.802

2016 0.804

2017 0.803 Source: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf

Human Development Indicators

Health

Indicator value

Expenditure on health, public (% of GDP)(%)2015 4.0

Under-five morality (per 1,000 live birth) 2016 8.4

Life expectancy at birth 2017 74.8

Source: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf

Education

Indicator Value

Government expenditure on education (%

of GDP) (%) 2012-2017

…

Primary school dropout rates (% of

primary school cohort) 2007-2016

3.9

Expected Years of Schooling (of children)

2017

13.6

Adult literacy rate, both sexes (% aged 15

and above)

95.7

Mean years of schooling (of adults) (years) 7.3

Source: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf

Economy - overview:

Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves

of about 102 billion barrels - more than 6% of world reserves. Kuwaiti officials plan to increase

production to 4 million barrels of oil equivalent per day by 2020. Petroleum accounts for over half

of GDP, 92% of export revenues, and 90% of government income.

In 2015, Kuwait, for the first time in 15 years, realized a budget deficit after decades of high oil

prices; in 2016, the deficit grew to 16.5% of GDP. Kuwaiti authorities announced cuts to fuel

subsidies in August 2016, provoking outrage among the public and National Assembly, and the

Amir dissolved the government for the seventh time in ten years. In 2017 the deficit was reduced

to 7.2% of GDP. Despite Kuwait’s dependence on oil, the government has cushioned itself against

the impact of lower oil prices, by saving annually at least 10% of government revenue in the Fund

for Future Generations.

Kuwait has failed to diversify its economy or bolster the private sector, because of a poor business

climate, a large public sector that employs about 76% of citizens, and an acrimonious relationship

between the National Assembly and the executive branch that has stymied most economic reforms.

The Kuwaiti Government has made little progress on its long-term economic development plan

first passed in 2010. While the government planned to spend up to $104 billion over four years to

diversify the economy, attract more investment, and boost private sector participation in the

economy, many of the projects did not materialize because of an uncertain political situation or

delays in awarding contracts.3

Economic Outlook

GDP Last Previous Range Unit Reference Frequency

GDP 120 111 1.83:174 USD

Billion

Dec/17 Yearly

GDP Annual

Growth Rate

2 1.8 -

20.62:33.99

% Dec/18 Quarterly

GDP PER CAPITA 33546 35251 33546:4958

9

USD Dec/17 Yearly

GDP PER CAPITA

PPP

65530 68862 65530:9687

0

USD Dec/17 Yearly

Labor Last Previous Range Unit Reference Frequency

POPULATION 4.1 4.1 0.26:4.1 Million Dec/17 Yearly

UNEMPLOYMENT

RATE

2.06 2.08 0.5:3.6 % Dec/18 Yearly

Prices Last Previous Range Unit Reference Frequency

INFLATION RATE 0.6 0.4 -1.15:11.7 % Feb/19 Monthly

Money Last Previous Range Unit Reference Frequency

INTEREST RATE 3 3 2:7.25 % Mar/19 Daily

Trade Last Previous Range Unit Reference Frequency

3 https://www.indexmundi.com/kuwait/economy_overview.html

BALANCE OF

TRADE

3139 2645 25.3:7066 KWS

Million

Sep/18 Quarterly

CURRENT

ACCOUNT

2155 2648 -908:18142 KWD

Million

Sep/18 Quarterly

CURRENT

ACCOUNT TO

GDP

5.9 -4.6 -242:54.57 % Dec/17 Yearly

EXPORTS 5946 5358 648:8855 KWD

Million

Sep/18 Quarterly

IMPORTS 2807 2712 440:2807 KWD

Million

Sep/18 Quarterly

Government Last Previous Range Unit Reference Frequency

GOVERNMENT

DEBT TO GDP

27.1 18.5 1.09:203 % Dec/17 Yearly

GOVERNMENT

BUDGET

11.4 6.6 -151:43.3 % of

GDP

Dec/18 Yearly

CREDIT RATING 90 Monthly

Source: https://tradingeconomics.com/Kuwait/indicators

GDP

The Gross Domestic Product (GDP) in Kuwait was worth 120.13 billion US dollars in 2017. The

GDP value of Kuwait represents 0.19 percent of the world economy. GDP in Kuwait averaged

44.45 USD Billion from 1962 until 2017, reaching an all time high of 174.16 USD Billion in

2013 and a record low of 1.83 USD Billion in 1962.4

4 https://tradingeconomics.com/kuwait/gdp

GDP Annual Growth Rate

The Gross Domestic Product (GDP) in Kuwait expanded 2 percent in the fourth quarter of 2018

over the same quarter of the previous year. GDP Annual Growth Rate in Kuwait averaged 3.19

percent from 1963 until 2018, reaching an all time high of 33.99 percent in the fourth quarter of

1993 and a record low of -20.62 percent in the fourth quarter of 1980.5

GDP Per Capita

The Gross Domestic Product per capita in Kuwait was last recorded at 33545.60 US dollars in

2017. The GDP per Capita in Kuwait is equivalent to 266 percent of the world's average. GDP per

capita in Kuwait averaged 40104.58 USD from 1995 until 2017, reaching an all time high of

49588.80 USD in 2007 and a record low of 33545.60 USD in 2017.6

5 https://tradingeconomics.com/kuwait/gdp-growth-annual 6 https://tradingeconomics.com/kuwait/gdp-per-capita

Government Budget

Kuwait recorded a Government Budget surplus equal to 6.60 percent of the country's Gross

Domestic Product in 2017. Government Budget in Kuwait averaged 8.26 percent of GDP from

1990 until 2017, reaching an all time high of 43.30 percent of GDP in 2005 and a record low of

-151.31 percent of GDP in 1991.7

7 https://tradingeconomics.com/kuwait/government-budget

Foreign Trade Evaluation

Trade Last Previous Highest Lowest Unit

Balance of Trade

3138.60 2645.00 7065.90 25.30 KWD

Million

Current Account 2155.00 2648.00 18142.00 -908.00 KWD

Million

Current Account to GDP 5.90 -4.60 54.57 -242.19 percent

Exports 5945.60 5358.00 8855.40 647.50 KWD

Million

Imports 2807.00 2712.00 2807.00 440.00 KWD

Million

Source: https://tradingeconomics.com/kuwait/balance-of-trade

Balance of Trade

Kuwait recorded a trade surplus of 3138.60 KWD Million in the third quarter of 2018. Balance

of Trade in Kuwait averaged 2127.61 KWD Million from 1993 until 2018, reaching an all time

high of 7065.90 KWD Million in the first quarter of 2012 and a record low of 25.30 KWD Million

in the second quarter of 1998.8

8 https://tradingeconomics.com/kuwait/balance-of-trade

Exports and Imports

Exports in Kuwait increased to 5945.60 KWD Million in the third quarter of 2018 from 5358

KWD Million in the second quarter of 2018. Exports in Kuwait averaged 3447.95 KWD Million

from 1993 until 2018, reaching an all time high of 8855.40 KWD Million in the first quarter of

2012 and a record low of 647.50 KWD Million in the first quarter of 1999.9

Imports in Kuwait increased to 2807 KWD Million in the third quarter of 2018 from 2712 KWD

Million in the second quarter of 2018. Imports in Kuwait averaged 1320.33 KWD Million from

1993 until 2018, reaching an all time high of 2807 KWD Million in the third quarter of 2018 and

a record low of 440 KWD Million in the third quarter of 1994.10

g

9 https://tradingeconomics.com/kuwait/exports 10 https://tradingeconomics.com/kuwait/imports

Tariffs and imports: Summary and duty ranges

Trade Profile 2017

Extracted from: World Trade Organization (WTO), “Trade Profiles 2017”, page.196-197

Kuwait Chamber of Commerce & Industry www.kuwaitchamber.org.kw

Mr. Ali Mohammed Thunayan Al-Ghanim Address: Commercial Area # 9, Al-Shuhadaa St. Kuwait City

775, Safat 13008 - Kuwait Tel: (965) 1805580 (965) 22423555 - (965) 22423666

Fax: (965) 22300074 kcci@kcci.org.kw