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[[Image:Kuwait rel96.jpg|thumb|right|300px|Kuwait]]

|map         =Kuwait rel96.jpg

|pm-raw         =

|area         =6,880 sq mi

|pop         =3,182,960

|pop-basis =2006

The '''State of Kuwait''' is a small oil-rich desert nation at the head of the [[Persian Gulf]]. It has land borders with with [[Iraq]] and [[Saudi Arabia]].  The name Kuwait is derived from Arabic meaning "fortress built near water".   

The '''State of Kuwait''' is a small oil-rich desert nation at the head of the [[Persian Gulf]]. It has land borders with with [[Iraq]] and [[Saudi Arabia]].  The name Kuwait is derived from Arabic meaning "fortress built near water".   

==Economy==

==Economy==

Kuwait has a small, relatively open economy dominated by the oil industry and government sector. Approximately 90% of the Kuwaiti citizen labor force works in the public sector, and 90% of private sector workers are non-Kuwaitis. Kuwait's proven crude oil reserves of about 101.5 billion barrels--9% of world reserves--account for nearly 60% of GDP, 95% of export revenues, and 80-90% of government income. During the 1970s, Kuwait benefited from the dramatic rise in oil prices, which Kuwait actively promoted through its membership in the Organization of Petroleum Exporting Countries (OPEC). The economy suffered from the triple shock of a 1982 securities market crash, the mid-1980s drop in oil prices, and the 1990 Iraqi invasion and occupation. The Kuwaiti Government-in-exile depended upon its $100 billion in overseas investments during the Iraqi occupation to help pay for the reconstruction. Thus, by 1993, this balance was cut to less than half of its pre-invasion level. The wealth of Kuwait is based primarily on oil and capital reserves, and the Iraqi occupation severely damaged both, although both have been restored as reconstruction has proceeded and world oil prices have risen. Kuwait enjoyed an economic boom following Operation Iraqi Freedom as many companies working in Iraq established offices in Kuwait and procured goods through Kuwaiti companies. The banking, financial services, logistics, telecommunications, and construction sectors, in particular, have grown in the last two years. The sustained high oil prices also provided the Kuwaiti Government with windfall revenues in 2005 and 2006.  

Kuwait has a small, relatively open economy dominated by the oil industry and government sector. Approximately 90% of the Kuwaiti citizen labor force works in the public sector, and 90% of private sector workers are non-Kuwaitis. Kuwait's proven crude oil reserves of about 101.5 billion barrels--9% of world reserves--account for nearly 60% of GDP, 95% of export revenues, and 80-90% of government income. During the 1970s, Kuwait benefited from the dramatic rise in oil prices, which Kuwait actively promoted through its membership in the Organization of Petroleum Exporting Countries (OPEC). The economy suffered from the triple shock of a 1982 securities market crash, the mid-1980s drop in oil prices, and the 1990 Iraqi invasion and occupation. The Kuwaiti Government-in-exile depended upon its $100 billion in overseas investments during the Iraqi occupation to help pay for the reconstruction. Thus, by 1993, this balance was cut to less than half of its pre-invasion level. The wealth of Kuwait is based primarily on oil and capital reserves, and the Iraqi occupation severely damaged both, although both have been restored as reconstruction has proceeded and world oil prices have risen. Kuwait enjoyed an economic boom following Operation Iraqi Freedom as many companies working in Iraq established offices in Kuwait and procured goods through Kuwaiti companies. The banking, financial services, logistics, telecommunications, and construction sectors, in particular, have grown in the last two years. The sustained high oil prices also provided the Kuwaiti Government with windfall revenues in 2005 and 2006.  

*GDP (2005 est.): $74.6 billion.  

*GDP (2007 est.): $138.6 billion.  

*Real GDP growth rate (2005): 8.5%.  

*Real GDP growth rate (2005): 8.5%.  

*Natural resources: Oil, natural gas, fish.  

*Natural resources: Oil, natural gas, fish.