Background: 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 completely liberated Kuwait in four days. Kuwait has spent more than $5 billion dollars to repair oil infrastructure damaged during 1990-91.
Natural hazards: sudden cloudbursts are common from October to April; they bring inordinate amounts of rain which can damage roads and houses; sandstorms and dust storms occur throughout the year but are most common between March and August
Geography Note: strategic location at head of Persian Gulf
Environment Current issues: limited natural fresh water resources; some of world's largest and most sophisticated desalination facilities provide much of the water; air and water pollution; desertification
International organization participation: ABEDA AfDB AFESD AL AMF BDEAC CAEU CCC ESCWA FAO G-77 GCC IAEA IBRD ICAO ICC ICRM IDA IDB IFAD IFC IFRCS IHO (pending member) ILO IMF IMO Inmarsat Intelsat Interpol IOC ISO (correspondent) ITU NAM OAPEC OIC OPCW OPEC UN UNCTAD UNESCO UNIDO UPU WFTU WHO WIPO WMO WToO WTrO
Economy overview: Kuwait is a small relatively open economy with proved crude oil reserves of about 94 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of GDP 90% of export revenues and 75% of government income. Kuwait lacks water and has practically no arable land: thus preventing development of agriculture. With the exception of fish it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. Higher oil prices reduced the budget deficit from $5.5 billion to $3 billion in 1999 and prices are expected to remain relatively strong throughout 2000. The government is proceeding slowly with reforms. It inaugurated Kuwait's first free-trade zone in 1999 and will continue discussions with foreign oil companies to develop fields in the northern part of the country.
Exports: $13.5 billion (f.o.b. 1999 est.) Commodities: oil and refined products fertilizers Partners: Japan 24% India 16% US 13% South Korea 11% Singapore 8% (1997)
Imports: $8.1 billion (f.o.b. 1999 est.) Commodities: food construction materials vehicles and parts clothing Partners: US 22% Japan 15% UK 13% Germany 8% Italy 6% (1997)
Telephone system: the civil network suffered some damage as a result of the Gulf war but most of the telephone exchanges were left intact and by the end of 1994 domestic and international telecommunications had been restored to normal operation; the quality of service is excellent
Disputes international: in November 1994 Iraq formally accepted the UN-demarcated border with Kuwait which had been spelled out in Security Council Resolutions 687 (1991) 773 (1993) and 883 (1993); this formally ends earlier claims to Kuwait and to Bubiyan and Warbah islands; ownership of Qaruh and Umm al Maradim islands disputed by Saudi Arabia