KUWAIT

FLAG

EMBLEM

Formal Name: State of Kuwait. Short Form: Kuwait. Term for Citizens: Kuwaiti(s); adjectival form, Kuwaiti. Capital: Kuwait (city of Kuwait frequently used to distinguish it from country). Date of Independence: June 19, 1961. Size: About 17,818 square kilometers. Topography: Almost entirely flat desert. Climate: Hot, dry, desert climate; sandstorms in June and July; some rain, mainly in spring. NOTE--The Country Profile contains updated information as available. Boundaries: Mostly defined; United Nations post-Persian Gulf War 1992 boundary settlement accepted by Kuwait but rejected by Iraq. Located in the north-east corner of the Arabian Peninsula, Kuwait is one of the smallest countries in the world in terms of land area. It lies between latitudes 28 and 31 N, and longitudes 46 and 49 E. The flat, sandy Arabian Desert covers most of Kuwait. The country is generally low lying, with the highest point being 306 m (1,004 ft) above sea-level. It has nine islands, all of which with the exception of Failaka Island are uninhabited. With an area of 860 km2 (330 sq mi), the Bubiyan is the largest island in Kuwait and is connected to the rest of the country by a 2,380 m (7,808 ft) long bridge. The land area is considered arable and sparse vegetation is found along its 499 km long coastline. Kuwait City is located on Kuwait Bay, a natural deep-water harbor. Kuwait has some of the world's richest oil fields with the Burgan field having a total capacity of approximately 70 billion barrels (1.11010 m3) of proven oil reserves. During the 1991 Kuwaiti oil fires, more than 500 oil lakes were created covering a combined surface area of about 35.7 km2 (13.8 sq mi). The resulting soil contamination due to oil and soot accumulation had made eastern and south-eastern parts of Kuwait uninhabitable. Sand and oil

residue had reduced large parts of the Kuwaiti desert to semi-asphalt surfaces. The oil spills during the Gulf War also drastically affected Kuwait's marine resources. The spring season in March is warm and pleasant with occasional thunderstorms. The frequent winds from the northwest are cold in winter and spring and hot in summer. Southeasterly winds, usually hot and damp, spring up between July and October; hot and dry south winds prevail in spring and early summer. The shamal, a northwesterly wind common during June and July, causes dramatic sandstorms.

Climate data for Kuwait Month Ja Ma No Feb Apr May Jun Jul Aug Sep Oct Dec Year n r v

Average 18 26 43 44.5 41 26 21 31 38 43 35 19 32.1 high C (64 (79 (10 (112. (10 (79 (70) (88) (100) (109) (95) (66) (89.8) (F) ) ) 9) 1) 6) ) Average 7 13 9 18 24 low C (45 (55 (48) (64) (75) (F) ) ) 13 27 29 28 24 19 8 18.3 (55 (81) (84) (82) (75) (66) (46) (64.9) ) 0 (0) 12. 2.5 17.8 106.8 0 7 (0.09 (0.70 (4.20 (0) (0.5 8) 1) 5) )

12. Precipitat 25. 15.2 15.2 5.1 0.20 7 0 ion mm 4 (0.59 (0.59 (0.20 (0.007 (0.5 (0) (inches) (1) 8) 8) 1) 9) )

Kuwait is divided into 6 governorates (muhafazah). The governorates are further subdivided into districts.

Subdivision Al Ahmadi1)

Capital Al Ahmadi

Area km 5 120

Population Census of 2005 393 861

Created

1946 from Al Asimah Al Asimah (Al original Al Kuwait 200 261 013 Kuwayt)2) Governorate 1988 from Al Al Farwaniyah Al Farwaniyah 190 622 123 Asimah 1979 from Al Al Jahra3) Al Jahra 12 130 272 373 Asimah original Hawalli Hawalli District 84 487 514 Governorate Mubarak AlNov. 1999 from Mubarak Al-Kabeer 94 176 519 Kabeer Hawalli TOTAL 17 818 2 213 403 1) The Neutral Zone was dissolved on Dec. 18, 1969, and the northern part with 2590 km was added to Al Ahmadi (with small part in the northwest added to Al Jahra) 2) including the islands of Failaka, Miskan, and Auhah 3) including the islands of Warbah and Bubiyan

HISTORY OF KUWAIT Threatened in the 19th century by the Ottoman Turks and various powerful Arabian Peninsula groups, Kuwait sought the same treaty relationship Britain had already signed with the Trucial States (U.A.E.) and Bahrain. In January 1899, the ruler Sheikh Mubarak Al Sabah--"the Great"--signed an agreement with the British Government that pledged himself and his successors neither to cede any territory, nor to receive agents or representatives of any foreign power without the British Government's consent, in exchange for protection and an

annual subsidy. When Mubarak died in 1915, the population of Kuwait of about 35,000 was heavily dependent on shipbuilding (using wood imported from India) and pearl diving. Mubarak was succeeded as ruler by his sons Jabir (1915-17) and Salim (1917-21). Kuwait's subsequent rulers have descended from these two brothers. Sheikh Ahmed al-Jabir Al Sabah ruled Kuwait from 1921 until his death in 1950, a period in which oil was discovered and in which the government attempted to establish the first internationally recognized boundaries; the 1922 Treaty of Uqair set Kuwait's border with Saudi Arabia and also established the Kuwait-Saudi Arabia Neutral Zone, an area of about 5,180 sq. km. (2,000 sq. mi.) adjoining Kuwait's southern border. Kuwait achieved independence from the British under Sheikh Ahmed's successor, Sheikh Abdullah al-Salim Al Sabah. By early 1961, the British had already withdrawn their special court system, which handled the cases of foreigners resident in Kuwait, and the Kuwaiti Government began to exercise legal jurisdiction under new laws drawn up by an Egyptian jurist. On June 19, 1961, Kuwait became fully independent following an exchange of notes with the United Kingdom. Kuwait enjoyed an unprecedented period of prosperity under Amir Sabah al-Salim Al Sabah, who died in 1977 after ruling for 12 years. Under his rule, Kuwait and Saudi Arabia signed an agreement dividing the Neutral Zone (now called the Divided Zone) and demarcating a new international boundary. Both countries share equally the Divided Zone's petroleum, onshore and offshore. The country was transformed into a highly developed welfare state with a free market economy. In August 1990, Iraq attacked and invaded Kuwait. Kuwait's northern border with Iraq dates from an agreement reached with Turkey in 1913. Iraq accepted this claim in 1932 upon its independence from Turkey. However, following Kuwait's independence in 1961, Iraq claimed Kuwait, arguing that Kuwait had been part of the Ottoman Empire subject to Iraqi suzerainty. In 1963, Iraq reaffirmed its acceptance of Kuwaiti sovereignty and the boundary it agreed to in 1913 and 1932, in the "Agreed Minutes between the State of Kuwait and the Republic of Iraq Regarding the Restoration of Friendly Relations, Recognition, and Related Matters." Following several weeks of aerial bombardment, a UN-mandated coalition led by the United States began a ground assault in February 1991 that liberated Kuwait. During the 7-month occupation by Iraq, the Amir, the Government of Kuwait, and many Kuwaitis took refuge in Saudi Arabia and other nations. The Amir and the government successfully managed Kuwaiti affairs from Saudi Arabia, London, and elsewhere during the period, relying on substantial Kuwaiti investments available outside Kuwait for funding and war-related expenses. Following liberation, the UN, under Security Council Resolution 687, demarcated the IraqKuwait boundary on the basis of the 1932 and 1963 agreements between the two states. In November 1994, Iraq formally accepted the UN-demarcated border with Kuwait, which had been further spelled out in UN Security Council Resolutions 773 and 883. Despite these

steps, bilateral relations between Kuwait and Iraq continued to be troubled into 2010 by unresolved problems related to border demarcation, debt, reparations, and the return of missing persons and archives seized during the 1990 invasion.

PEOPLE Over 90% of the population lives within a 500-square kilometer area surrounding Kuwait City and its harbor. Although the majority of people residing in the State of Kuwait are of Arab origin, fewer than half are originally from the Arabian Peninsula. The discovery of oil in 1938 drew many Arabs from nearby states. Following the liberation of Kuwait from Iraqi occupation in 1991, the Kuwaiti Government undertook a serious effort to reduce the expatriate population by specifically limiting the entry of workers from nations whose leaders had supported Iraq during the Gulf War. Kuwait later abandoned this policy, and it currently has a sizable foreign labor force (approximately 68% of the total population is non-Kuwaiti). Of the country's total population of 3.5 million, approximately 85% are Muslims, including nearly all of its 1.06 million citizens. While the national census does not distinguish between Sunni and Shi'a adherents, approximately 70%-75% of citizens, including the ruling family, belong to the Sunni branch of Islam. The remaining 25-30% of Kuwaiti citizens are Shia, with the exception of about 100-200 Christians and a few Baha'is, are Shi'a. Among expatriates, there are an estimated 450,000 Christians, 300,000 Hindus, 100,000 Buddhists, 10,000 Sikhs, and 400 Bahai. Kuwait's 93.3% literacy rate, one of the Arab world's highest, is the result of extensive government support for the education system. Public school education, including Kuwait University, is free, but access is restricted for foreign residents. The government sponsors the foreign study of qualified students abroad for degrees not offered at Kuwait University. In 2009, approximately 3,318 Kuwaitis were enrolled in U.S. universities.

GOVERNMENT AND POLITICS IN KUWAIT

Kuwait is a constitutional, hereditary emirate ruled by princes (Amirs) who have been drawn from the Al Sabah family since the middle of the 18th century. The 1962 constitution provides for an elected National Assembly and details the powers of the branches of government and the rights of citizens. Under the Constitution, the National Assembly has a limited role in approving the Amir's choice of the Crown Prince, who succeeds the Amir upon his death. If the National Assembly rejects his nominee, the Amir then submits three names of qualified candidates from among the direct descendants of Mubarak the Great, the founder of modern Kuwait, from which the Assembly must choose the new Crown Prince. Successions have been orderly since independence. In January 2006, the National Assembly played a symbolically important role in the succession process, which was seen as an assertion of parliament's constitutional powers.

For almost 40 years, the Amir appointed the Crown Prince as Kuwait's Prime Minister. However, in July 2003, the Amir formally separated the two positions and appointed a different ruling family member as Prime Minister. Kuwait's first National Assembly was elected in 1963, with follow-on elections held in 1967, 1971, and 1975. From 1976 to 1981, the National Assembly was suspended. Following elections in 1981 and 1985, the National Assembly was again dissolved. Fulfilling a promise made during the period of Iraqi occupation, the Amir held new elections for the National Assembly in 1992. In 1999, 2006, 2008, March 2009, and December 2011, the Amir dissolved the National Assembly, but complied with the constitution by holding new elections within 60 days. The upcoming general election, to be held in February 2011, is expected to be considered free and fair. Women will participate for the fourth time as voters and candidates. The February 2012 parliamentary election will be the third under a new five-constituency system. The government does not officially recognize political parties; however, de facto political blocs, typically organized along ideological lines, exist and are active in the National Assembly. Although the Amir maintains the final word on most government policies, the National Assembly plays a real role in decision-making, with powers to initiate legislation, interpellate ("grill") cabinet ministers, and conduct a vote of no-confidence for individual ministers. For example, in May 1999, the Amir issued several landmark decrees dealing with women's suffrage, economic liberalization, and nationality. The National Assembly later rejected all of these decrees as a matter of principle and then reintroduced most of them as parliamentary legislation. In July 2005, the Prime Minister appointed Kuwait's first female minister, Masouma AlMubarak, as Planning Minister and Minister of State for Administrative Development Affairs, and later as Minister of Health. Dr. Amani Khalid Buresli, appointed Minister of Commerce in December 2011, is the sole female cabinet member. Principal Government Officials Amir--Sabah Al-Ahmed Al-Jaber Al Sabah Crown Prince--Nawaf Al-Ahmed Al-Jaber Al Sabah Prime Minister--Jaber Al-Mubarak Al-Hamad Al Sabah Deputy Prime Minister, Minister of Interior and Minister of Defense--Ahmed Humoud AlJaber Al Sabah Deputy Prime Minister/Minister of Foreign Affairs, Minister of State for Cabinet Affairs-Shaykh Sabah Al-Khalid Al-Hamad Al-Sabah Minister of Information: Shaykh Hamad Jaber Al-Sabah Minister of Finance and Minister of Health: Mustafa Jassem Al-Shamali Minister of Public Works and Municipality Affairs: Dr. Fadhil Safar Ali Safar Minister of Oil and Minister of National Assembly Affairs: Dr. Mohammed Mohsen alBusairi Minister of Education and Minister of Justice: Ahmad Abdulmohsen al-Mulaifi Minister of Commerce and Minister of Planning and Development: Dr. Amani Khalid Buresli Minister of Electricity and Water and Minister of Communications: Salem Mutheeb Ahmad al-Othaina Minister of Awqaf and Minister of Housing: Mohammed Abbas al-Nomes National Assembly Speaker: Ambassador to the United States--Salim Al-Abdullah Al-Jaber Al Sabah Permanent Representative to the United Nations--Mansour Al-Otaibi

ECONOMY OF KUWAIT

Kuwait is a geographically small but wealthy country with a relatively open economy and self-reported crude oil reserves of nearly 105 billion barrels--approximately 8% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 95% of government income. Kuwaiti officials have committed to increasing oil production to 4 million barrels per day (bpd) by 2020. Due to a budget surplus generated from oil prices, Kuwait survived the economic crisis that began in 2008, and in 2010 it posted its twelfth consecutive budget surplus. Kuwait has done little to diversify and reform its economy, in part because of this positive fiscal situation, but also due to the poor business climate. In addition, the acrimonious relationship between the National Assembly and the executive branch has stymied most movement on economic reforms. Nonetheless, in 2010 the government passed an economic development plan that pledged to spend up to $104 billion over 5 years to diversify the economy away from oil, attract more investment, and boost private sector participation in the economy. There is speculation whether such an increase in spending over the planned time frame is even possible. The Kuwait National Assembly passed a law on December 26, 2007, amending the Income Tax Decree No. 3 of 1955 and setting the foreign corporate tax rate at a flat 15% to attract more foreign investment. The foreign corporate tax rate previously ranged from 0% to 55%. Oil In 1934, the ruler of Kuwait granted an oil concession to the Kuwait Oil Company (KOC), jointly owned by the British Petroleum Company and the Gulf Oil Corporation. In 1976, the Kuwaiti Government nationalized KOC. The following year, Kuwait took over part of onshore production in the Divided Zone between Kuwait and Saudi Arabia. Kuwait Gulf Oil Company (KGOC) produces jointly there with Saudi Arabian Chevron, which, by its 1984 purchase of Getty Oil Company, acquired the Saudi Arabian onshore concession in the Divided Zone. Saudi Arabia renewed Chevron's concession in the Divided Zone for another 30 years, effective from February 2009. KGOC also manages offshore production operations, while Aramco Gulf Oil Company (AGOC) manages the Saudi portion of the offshore Divided Zone. Kuwait Petroleum Corporation (KPC), an integrated, state-owned oil company, is the parent company of the government's operating companies in the petroleum sector. It includes Kuwait Oil Company, which produces oil and gas; Kuwait National Petroleum Company, which manages refining and domestic sales; Petrochemical Industries Company, which produces ammonia, urea, ethylene, propylene, and styrene and participates in a number of successful joint ventures with Dow Chemical within Kuwait and abroad; Kuwait Foreign Petroleum Exploration Company, which is responsible for exploration and upstream production outside Kuwait (in several developing countries and Australia); Kuwait Oil

Tanker Company; Kuwait Gulf Oil Company, responsible for exploration and production in the Kuwait portions of the offshore and onshore Divided Zone; and Kuwait Petroleum International, which manages refining and retail operations outside Kuwait (in Europe and East Asia). According to official Organization of Petroleum Exporting Countries (OPEC) figures, Kuwait has approximately 101.5 billion barrels of proven oil reserves (including the Kuwaiti share of proven reserves in the Divided Zone), the fifth-largest oil reserves in the world after Saudi Arabia, Canada, Iran, and Iraq. By 1993, Kuwait had restored its oil production capacity to its pre-occupation levels of 2.4 million bpd. Kuwait's current oil production capacity is estimated at 3 million bpd. Kuwait plans to increase its capacity to 3.5 million bpd by 2015 and 4.0 million bpd by 2020. Many analysts question whether these goals are feasible. Kuwaiti export crude averaged $82 per barrel in 2010. KPC purchased refineries in the Netherlands and Italy and service stations in the Benelux nations, Italy, and Scandinavia from Gulf Oil Company. In 1987, KPC bought a 19% share in British Petroleum, which was later reduced to 10%. KPC markets its products in Europe under the brand name Q8. In 2006, KPC announced plans to participate in a joint venture to build and operate a refinery and associated petrochemical plant in China. In April 2008, KPC signed a joint venture agreement with Idemitsu Kosan-Japan to hold a 35.1% stake, worth $6 billion, of Vietnam's second refinery. Both projects are pending processing of domestic licenses. In 2008, KPC awarded a $14 billion project to construct a fourth refinery to several international firms. The project would increase refining capacity from the current 930,000 barrels per day to 1.5 million barrels per day by 2012. However, this project was canceled in March 2009. Under political pressure, the tendering process was reviewed and found illegitimate, as it was not awarded under the Central Tenders Committee bidding process. As of now, the fourth refinery has not been retendered. Social Benefits The government has sponsored many social welfare, public works, and development plans financed with oil and investment revenues. Among the benefits for Kuwaiti citizens are retirement income, marriage bonuses, housing loans, virtually guaranteed employment, free medical services, and education at all levels. By Amiri decree, the government occasionally disburses a portion of its budget surplus as a grant to all Kuwaiti citizens. In 2006, an Amiri grant of 200 Kuwaiti dinars (approximately $700) was paid to every citizen who applied. In 2007, the government implemented a debt forgiveness scheme for Kuwaiti citizens amounting to just over $1 billion. In February 2011, the government announced an Amiri grant of estimated 1.5 billion Kuwaiti dinars (approximately $5.3 billion), including 1,000 Kuwaiti dinars (approximately $3,500) to be paid to every citizen along with free monthly food baskets to each Kuwaiti family for 14 months. Foreign nationals residing in Kuwait do not have access to these welfare services. The right to own stock in publicly traded companies, real estate, and banks or a majority interest in a business is limited to Kuwaiti citizens and citizens of Gulf Cooperation Council (GCC) countries under limited

circumstances. Industry and Development Industry in Kuwait consists of several large export-oriented petrochemical units, oil refineries, and a range of small manufacturers. It also includes large water desalinization, ammonia, desulphurization, fertilizer, brick, block, and cement plants. The U.S. and Kuwaiti governments signed a Trade and Investment Framework (TIFA) agreement in 2004, providing a forum to address mutual trade concerns and needed economic reforms. Kuwait and the other GCC nations signed a free trade agreement with Singapore in 2008, and with the European Free Trade Association (EFTA) in 2009. Kuwait does not attract significant foreign direct investment (FDI), largely due to bureaucratic obstacles and barriers to doing business in Kuwait. Agriculture Agriculture is limited by the lack of water and arable land. The government has experimented in growing food through hydroponics and carefully managed farms. However, much of the soil which was suitable for farming in south central Kuwait was destroyed when Iraqi troops set fire to oil wells in the area and created vast "oil lakes." Fish and shrimp are plentiful in territorial waters, and large-scale commercial fishing has been undertaken locally and in the Indian Ocean. Shipping The Kuwait Oil Tanker Company has 24 crude oil, liquefied petroleum gas, and refined product carriers and is the largest tanker company in an OPEC country. Kuwait is a member of the United Arab Shipping Company. Trade, Finance, and Aid The Kuwaiti dinar is currently pegged to an undisclosed basket of currencies. As of December 1, 2011, one U.S. dollar was equivalent to 0.2749 Kuwaiti dinars. Soaring oil prices in 2010 contributed to a budget surplus for fiscal year 2010/11 (ending March 31, 2011). As of November 2011, the budget surplus was estimated at $29.9 billion for the first 7 months of the 2011-2012 fiscal year. The Kuwait Investment Authority's (KIA) Kuwait Sovereign Wealth Fund manages the Kuwait General Reserve Fund and the Kuwait Future Generations Fund. KIA is prohibited by law from publicly discussing the size of its holdings, and avoids any but the most general discussions of asset allocation. KIA does, however, provide closed-door presentations on the full details of all funds under its management--including its strategic asset allocation, benchmarks, and rates of return--to the Council of Ministers as well as to the National Assembly. Media reports in 2011 speculated that KIA's holdings were approximately U.S. $250 billion. Kuwait has been a major source of foreign economic assistance to other states through its Kuwait Fund for Arab Economic Development (KFAED). The fund is an autonomous state

institution created in 1961 on the pattern of western and international development agencies and is chaired by the Kuwaiti Foreign Minister. In 1974, the funds lending mandate was expanded to include all non-Arab developing countries. According to the most recent statistics, the funds paid capital amount is $7 billion. The fund has granted 805 loans with a total value of about $15.6 billion since its inception, and has extended technical assistance on 102 countries, including 16 Arab countries, 40 African countries, 35 Asian and European countries, and 11 Latin American countries. During 2011, , the fund signed 15 loan agreements, valued at $316.27 million, with four Arab countries, five African countries, three countries in East Asia, South Asia, and the Pacific, two countries in Central Asia and Europe, and one country in Latin America and the Caribbean region. FOREIGN RELATIONS Following independence in June 1961, Kuwait faced its first major foreign policy problem arising from Iraqi claims to Kuwait's territory. The Iraqis threatened invasion but were dissuaded by the U.K.'s ready response to the Amir's request for assistance. Kuwait presented its case before the United Nations and preserved its sovereignty. U.K. forces were later withdrawn and replaced by troops from Arab League nations, which were withdrawn in 1963 at Kuwait's request. On August 2, 1990, Iraq invaded and occupied Kuwait. Through U.S. efforts, a multinational coalition was assembled, and, under UN auspices, initiated military action against Iraq to liberate Kuwait. Arab states, especially the other five members of the Gulf Cooperation Council (Saudi Arabia, Bahrain, Qatar, Oman, and the United Arab Emirates), Egypt, and Syria, supported Kuwait by sending troops to fight with the coalition. Many European and East Asian states sent troops, equipment, and/or financial support. After liberation, Kuwait concentrated its foreign policy efforts on development of ties to states which had participated in the multinational coalition. Notably, these states were given the lead role in Kuwait's reconstruction. Kuwait's relations with those nations that supported Iraq, among them Jordan, Sudan, Yemen, and Cuba, were slow to recover. Palestine Liberation Organization (PLO) Chairman Yasir Arafat's support for Saddam Hussein during the war also affected Kuwait's attitudes toward the PLO though Kuwait supports the ArabIsraeli peace process. The Government of Kuwait has abandoned its previous policy of limiting the entry of workers from nations whose leaders had supported Iraq during the Gulf War. In August 2001, the Interior Minister announced that there were no longer any special restrictions or permits required for Palestinian workers wishing to return to the country. At the end of 2009, there were approximately 30,000 Palestinians, 48,000 Jordanians, and 5,000 Yemenis resident in Kuwait. Since liberation from Iraq, Kuwait has made efforts to secure allies throughout the world, particularly UN Security Council members. In addition to the United States, defense arrangements have been concluded with the United Kingdom, Russia, and France. Ties to other key Arab members of the Gulf War coalition--Egypt and Syria--also have been

sustained. During the 2002-03 buildup to and execution of Operation Iraqi Freedom (OIF), Kuwait was a vital coalition partner, reserving a full 60% of its total land mass for use by coalition forces and donating significant assistance in kind to the effort. Kuwait continued to provide generous assistance in kind to coalition operations in Iraq. Kuwait has been consistently involved in reconstruction efforts in Iraq, pledging $1.5 billion at the October 2003 international donors' conference in Madrid, and consulting closely with Iraqi officials, including former Prime Minister Ibrahim Jaffari, who visited Kuwait in late October 2005, and Prime Minister Nouri al-Maliki, who visited in July 2006 and again in April 2007. Kuwait has been an active and vocal public supporter of the political process in Iraq, welcoming the January 2005 elections and praising Iraq's October 2005 successful constitutional referendum. In April 2008 Kuwait hosted the Iraq Neighbors Conference, which was attended by Secretary of State Condoleezza Rice, Iraqi Prime Minister Nouri AlMaliki, and foreign ministers from throughout the region. In October 2008, Lieutenant General (retired) Ali Al-Moumin presented his credentials as Kuwaits Ambassador to Baghdad to Iraqi President Jalal Talabani. Two years later, in 2010, Iraq nominated Muhammad Al-Ulum to become the first Iraqi Ambassador to Kuwait since 1990. Kuwait is a member of the UN and some of its specialized and related agencies, including the World Bank (IBRD), International Monetary Fund (IMF), World Trade Organization (WTO), General Agreement on Tariffs and Trade (GATT); African Development Bank (AFDB), Arab Fund for Economic and Social Development (AFESD), Arab League, Arab Monetary Fund (AMF), Council of Arab Economic Unity (CAEU), Economic and Social Commission for Western Asia (ESCWA), Group of 77 (G-77), Gulf Cooperation Council (GCC), INMARSAT, International Development Association (IDA), International Finance Corporation, International Fund for Agricultural Development, International Labor Organization (ILO), International Maritime Organization, Interpol, IOC, Islamic Development Bank (IDB), International Federation of Red Cross and Red Crescent Societies, Non-Aligned Movement, Organization of Arab Petroleum Exporting Countries (OAPEC), Organization of the Islamic Conference (OIC), Organization of Petroleum Exporting Countries (OPEC), and the International Atomic Energy Agency (IAEA). DEFENSE Before the Gulf War, Kuwait maintained a small military force consisting of army, navy, and air force units. The majority of equipment for the military was supplied by the United Kingdom. Aside from the few units that were able to escape to Saudi Arabia, including a majority of the air force, all of this equipment was either destroyed or taken by the Iraqis. Much of the property returned by Iraq after the Gulf War was damaged beyond repair. Iraq retained a substantial amount of captured Kuwaiti military equipment in violation of UN resolutions. Since liberation, Kuwait, with the help of the United States and other allies, has made significant efforts to increase the size and modernity of its armed forces. These efforts are succeeding. The government also continues to improve defense arrangements with other Arab

states, as well as UN Security Council members. During Operation Iraqi Freedom, in 2003, Kuwaiti military elements successfully operated missile defense systems. A separately organized National Guard maintains internal security. The police constitute a single national force under the purview of civilian authorities of the Ministry of Interior.

SOCIAL AND CULTURAL ENVIRONMENT OF KUWAIT

Kuwait was never a colony and the Kuwaitis have always been free to manage their affairs among themselves as they see fit and develop their unique cultural characteristics in their own way. The Kuwaiti of the pre-oil era survived, in the harshness of the desert or sea, through a mix of finely honed skills and highly developed social organization based on family, can and tribe, which provided the economic and political support necessary for survival. In return for this support, the individual gave unquestioning service and loyalty to his group. This gave rise to clan based networks, which are still extremely strong and provide the basis of social relations between Kuwaitis today. The Kuwaiti child was taught from an early age to serve and protect older family members and also, to ensure cooperation between clans, not to embarrass the family, The degree, which a young Kuwaiti was successful in learning his role was reflected in the amount of (face), he earned. The concept of face has the same meaning as respect and reputation in the west, except the face has intensity about it that is almost inconceivable to a westerner. But face accrues not only to the individual but also to the group, and a youth is considered mature once he view personal success as being synonymous with the success of the family or group. Face is expressed through hospitality, generosity and loyalty to family or particular group. A Kuwaiti spends his life building his personal and social face and the sense of face lies behind many social behaviors in Kuwait.

The dewaniyah or parlour has existed in Kuwait since time immemorial. The term originally referred to the section of a Bedouin tent where the menfolk and their visitors sat apart from the family. In the old city of Kuwait it was the reception area where a man resaved his business colleagues and male guests. Today the term refers both to a reception hall and the gathering held in it, and visiting or hosting a Diwaniyah is an in dispensable feature of a Kuwaiti mans social life. As a social event, adiwaniyah takes place in special room or annex, which is usually, separate from the rest of mans house. Only men are present and they sit around on soft benches or cushion, conversing casually, smoking, nibbling snacks and relaxing the evening, The hosts job is to be hospitable and entertain his guests, and the reputation of a man Diwaniyah is one of the prime ways in which he achieves face. There are also more formal Diwaniyah, which specialize in particular interests, such as politics or science.

Most Kuwaitis men wear a dishdasha, a floor length robe with a center robe opening which is but on over the head. Because it is so well suited to the climate, this basic garment has changed little in the last few hundred years, though the collar, front button fastening and buttoned cuffs are 20th century innovations introduction by Indian tailor . Provided he is not corpulent, the dishdasha can at time make the wearer look quit elegant. The three-part headdress of the Kuwait male is also very functional. It provides shade during summer, it can be wrapped across the face during sandstorms, and its end can be twisted up like a turban if the wearer is doing manual work The gutra is a square piece of cloth which is folded into a triangle and then placed centrally on the head so that the ends hang down equally over the shoulders. It is held in place by an ogal, a double circlet of twisted black cord, which is placed firmly over the head. Often a gahfiah, a close fitting skull cap , is worn under the gutra to stop it from slipping . The headdress can be worn in various ways, ranging from the stiffly formal to the downright rakish, depending on the wearers mode and the social occasion, In the most dignified style the gutra is centered on the head. And pulled down well cover the forehead so that tow pointed ends are arranged on each side of the face, the other at the back, and the ogal is set straight on the head just slightly tilted back from the forehead .The possible variation on this basic positioning are endless. The ogal can be pushed backwards towards the top of the head, pulled down over the forehead, tilted on the kildare side or pulled down over a raffish eye. And once the ogal has been exactly positioned, the gutra can be arranged in various symmetrical and asymmetrical ways. The ends can, for example, be folded neatly back over the shoulders to open the face, or one end can be left hanging forward while the other is folded up and draped back to the head to expose a handsome profile. Shebabs, young Kuwaiti studs, spend a lot of their time getting the lie of ogal and gutra just right. Once his headgear is settled to his liking, all a Kuwaiti has to complete his dress is to slip on a pair of leather sandals as he goes out the door. In the old days he would properly have girded himself in a leather belt with shoulder strap to hold a sheathed saef (sword) and khanjar (dagger) with possibly a sakeen (dirk) up his sleeve, but todays Kuwaiti has replaced these manly accessories with those modern necessities, a mobile and pager.Kuwaiti wears white or cream dishdash, with matching gutras, most months of the year. During winter somber coloured heavier cloths are used and the gutras is changed to a red and white check, For example, the onset of winter and spring is easily marked when the locals suddenly, within the space of a day or so, change the colour of their clothing. In winter, most Kuwaitis also wear a heavy bisht, a cloak made of traditional thick dun-coloured camel hair or of heavy modern wool, over their dishdash, though the shebab tend to favour thick leather wool-lined zipped jerkins. On grand occasion, a semi-transparent bisht with zari, special gold braiding, is worn by the rich and powerful, The embossed look of the zari is created by the first hand-embroidering the bisht with gold threads and then hammering the threads so that they become fused.

Kuwaiti women dress in western clothes, Though they may choose from the more demure styles, the latest designs are worn, regardless of the climate or convenience. However their traditional clothing, such as the thob (a straight-sided long overdress), is still used for dancing on festive occasion. When in public many local women cover their chic western clothing with an aba, a head-totoe silky black cloak, Bedouin women may also wear a burga, a short black veil that covers

the entire face. The hijab, or Islamic headscarf, which conceals the hair while leaving the face unveiled is not a Kuwaiti garment but is of northern origin. It is worn by many expatriate Muslim women. The hijab is usually complemented by along-sleeved floor-length garment,often in pretty colours, and the overall more elegant than the voluminous aba. most of the information from Kuwait Pocket Guide. Education The State of Kuwait is directing its attention towards Inclusive Education, which provides opportunity to all children, irrespective of their social class, including children with special needs. Kuwait education system is marked by several achievements in recent years. As of 2005/06 Kuwait allocates 13 percent of all public expenditure to education, which is comparable to the allocation of public funds to education in many OECD countries but lower than other Arab countries. For the same years the public expenditure on education as a percentage of GDP was 3.9 percent in 2005/12 which is well below the percentage of GDP spent by OECD countries on education. As of 2005, the literacy rate of Kuwait is 93.3 percent. Kuwait is facing challenges in improving the quality of education at all levels and to build capacities of students' from a young age. The Ministry of Education is also making efforts to incorporate women into the educated workforce through various programs, for instance the 1989 initiative to establish daytime literacy clinics for women. The Kuwaiti government also offers scholarships to students accepted in universities in United States, United Kingdom and other foreign institutes. There is also higher education, which has improved drastically in the past years. The largest university is Kuwait University which is free for Kuwaitis and has over 1,500 faculty members and 22,000 students. There are also a number of private institutions such as American University of Kuwait, Gulf University for Science and Technology, the Australian University of Kuwait. The American University of The Middle East, Box Hill College Kuwait and Maastricht Business School Kuwait. Kuwait has the highest literacy rate among the Arab world with 94%, up from 93.3% in 2005 (as stated above) Ethnic groups About 57% of the population in Kuwait is Arab, 39% South and East Asian, and 4% are classified Bidoon ('without' stateless Arabs). In 2009, more than 580,000 Indian nationals lived in Kuwait, making them the single largest expatriate community there. In 2003, there were also an estimated 260,000 Egyptians, 100,000 Syrians and 80,000 Iranians in Kuwait. After Kuwait was liberated from the Iraqi invasion and occupation by coalition forces led by The United States of America, most of the 400,000 Palestinians living in Kuwait were expelled because of their government's open support for the Iraqi Forces Languages Kuwait's official language is Modern Standard Arabic. Kuwaiti Arabic, a Gulf Arabic subdialect, is Kuwait's colloquial dialect. English is widely understood and often used as a business language. TECHNOLOGICAL ENVIRONMENT