🇰🇼 Kuwait

Kuwait is a small Persian Gulf emirate of 4.3 million people (only 1.5 million are citizens) with a GDP of about $160 billion. The country sits on 6% of the world's proven oil reserves and has one of the highest GDP per capita figures globally. Kuwait's sovereign wealth fund, the Kuwait Investment Authority (established 1953), is one of the oldest and largest in the world at about $800 billion. The country was invaded by Iraq in 1990, leading to the Gulf War — the environmental damage from burning oil wells took years to remediate. Kuwait has a relatively open political system by Gulf standards, with an elected parliament that frequently clashes with the ruling Al Sabah family.

Oil accounts for about 90% of government revenue and 95% of exports. Kuwait produces about 2.7 million barrels per day. Japan, South Korea, China, and India are the main oil customers. The non-oil economy is small — government spending drives most economic activity, and the public sector employs about 80% of Kuwaiti nationals. The country has been trying to develop a financial services sector and attract foreign investment, but progress has been slow compared to Dubai or Riyadh.

Kuwait's Burgan oil field is the world's second-largest, and the country's oil reserves could last over 100 years at current production rates. Kuwait was the first Gulf state to establish a constitution and parliament (1962). The country's Liberation Tower, built to commemorate the Gulf War liberation, is the tallest structure in Kuwait at 372 meters.

Kuwait's oil wealth provides an enormous cushion, but the political gridlock between parliament and government has stalled economic reform for years. The diversification challenge is real but not urgent — those reserves buy a lot of time.