The State of Kuwait is strategically positioned at the northwestern corner of the Arabian Gulf, bordered by Iraq to the north and west, and Saudi Arabia to the south. As one of the world's major oil-producing nations, Kuwait has developed into a prosperous modern state that combines traditional values with contemporary vision.
Kuwait City serves as both the political and economic center, where gleaming skyscrapers stand alongside historic landmarks, creating a unique urban landscape that reflects the country's journey from a pearl-diving hub to a global financial center.
Kuwait is a leading oil producer with around 10 percent of the world's crude reserves. Since the development of the petroleum industry after World War II, oil has dominated the local economy, accounting for almost 50 percent of GDP and 90 percent of export revenues.
Today, Kuwait Petroleum Company is the seventh largest oil company in the world. It has extensive overseas operations including refineries and large downstream distribution networks in western Europe. The country now exports almost 80 percent of its products outside the Arab world.
While destruction of the oil industry during Iraq's 1990-91 occupation was extensive, damage to Kuwait's exploitable reserves was estimated at only two percent. By mid-1994, crude production capacity recovered to 2.4 million bpd, and refinery capacity was back to pre-invasion levels.
Prior to the global financial crisis, oil prices sustained at record highs, and Kuwait's low interest rates along with inflation were continuing to drive an economic boom. However, although Kuwait was better prepared than most countries to handle the fallout from the global financial crisis, the economy was still affected. The decline in oil prices delayed economic growth. Real GDP declined at an estimated rate of -1.2 percent in 2009. (International Monetary Fund, 2009 Country Report).
Kuwait's private sector is investing over $8 billion in large-scale commercial ventures while the Government has unveiled a series of billion-dollar infrastructure projects to cater to the needs of Kuwait's rapidly growing population.
Kuwait's government has opened up 11 sectors to foreign investors including education, health, banking, telecommunications, petrochemicals, hotels and insurance. At the same time, much of the new liquidity is streaming into the real estate sector where unprecedented levels of investment are taking place.