Introduction:
Britain oversaw foreign relations and defense for the ruling Kuwaiti AL-SABAH dynasty from 1899 until independence in 1961. 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 has ruled since returning to power in 1991, and reestablished an elected legislature that in recent years has become increasingly assertive.

Location: Middle East, bordering the Persian Gulf, between Iraq and Saudi Arabia

Population: 2,418,393
note: includes 1,291,354 non-nationals (July 2006 est.)

Languages: Arabic (official), English widely spoken

Country name: conventional long form: State of Kuwait
conventional short form: Kuwait
local long form: Dawlat al Kuwayt
local short form: Al Kuwayt

Capital: name: Kuwait
geographic coordinates: 29 20 N, 47 59 E
time difference: UTC+3 (8 hours ahead of Washington, DC during Standard Time)

Economy - overview:
Kuwait is a small, rich, relatively open economy with self-reported crude oil reserves of about 96 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. Kuwait's climate limits agricultural development. Consequently, with the exception of fish, it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. Kuwait continues its discussions with foreign oil companies to develop fields in the northern part of the country. High oil prices in recent years have helped build Kuwait's budget and trade surpluses and foreign reserves. As a result of this positive fiscal situation, the need for economic reforms is less urgent and the government has not earnestly pushed through new initiatives.