Economy of Kuwait

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Kuwait is an Arab, independent, fully Sovereign state. The religion of the state is Islam and Islamic
law shall be the main source of legislation.It has nine main cities with Kuwait city as capital. The
constitution of Kuwait was created by Constitutional assembly in 1961-62 and signed into law
in Nov. 1952 by Emir, the commander of military of Kuwait. 
Kuwait is a geographically small petroleum- based progressive  economy. Kuwaiti Dinar is the highest value unit currency in the world.Non-petroleum industries include financial services.
National Bank of Kuwait was established in 1952 which is now largest financial institution
in Kuwait.
Kuwait is the fourth richest country in the world per capita. It is the second richest GCC (Gulf co-operation council) country per capita. Kuwait has oil reserves of about 102 billion barrels -more
than 6% of world's reserves. Petroleum accounts for over half of GDP - 92% export revenues and 90% of Govt. income. 
By 19th and 20th century, Kuwait economy shifted mostly to Pearl trade as pearl diving gained
more & more importance. Since Pearl banks there were abundant in the world, they were richly
exploited by merchants and sailors at that time. Kuwait had 700 boats and 15000 men employed
in Pearl diving during early 20th century. This resulted in development of strong ship building
industry that was soon famous through Arabia. This trend continued till 1990. While this trend
produced a rich class of merchants & Kuwait economy was flourishing it offered a very poor
standard of life for those who did not belong to such families. A decline in the Pearl trade struck
the economy at that time and was put in danger of collapse.
In 1938, oil was discovered in Kuwait and ever since the commencing of oil exports in post
World War II period, Kuwait economy has only changed for the better. Due to climatic conditions,
there is not much scope for agriculture in Kuwait. Most of soil useful for farming was destroyed
by Iraqi forces who set fire to oil wells in the area. Except for Fish, Kuwait has to import most
of what it eats. 75% of Potable water needs to be either distilled or imported. Kuwait economy
is continuing to look for opening more wells in the north of the country.
       

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