Free Research Paper on Kuwait

Kuwait is a small Arab region situated in southwestern Asia between the nations of Iraq and Saudi Arabia and bounded by the Persian Gulf. Kuwait is believed to become a single of fifteen states that gave birth to civilization and thus have been regarded the ‘cradle of humanity’ states.

Speaking about the geographic coordinates of Kuwait, I need to note that they are 29° 30′ North, 45° 45′ East. Kuwait is also simply discovered over a map of Southwest Asia (Foster, 132).

Geographic area of Kuwait is 17820 square kilometers. All the area is located on a land, despite the existence of 9 tiny islands belonging to Kuwait in the Persian Gulf. That area makes Kuwait similar to New Jersey in size.

Kuwait borders make up 462 kilometers (about 300 miles). The border with Iraq is about 240 kilometers while the border with Saudi Arabia is about 222 kilometers. The coastline in the land of Kuwait extends for 500 kilometers.

The climate in Kuwait is dry desert, meaning that it gets incredibly hot during the summer and during the day and cool at night and during winters. The terrain throughout Kuwait is flat desert plain. The lowest thing in Kuwait may be the Persian gulf that is certainly 0 meters around the sea level. The highest thing is stated to be located 300 yards above the ground yet bears no name as it is often a component of a plain’s landscape curves (Stephenson, 190).

Kuwait possess vast amounts of resources just like oil, natural gas and smaller amounts of fish and shrimp.

Because of barren terrain, Kuwait has only about 1/3 of the percent of arable country and less than 6/100 of the percent of permanent crops that grow due to irrigation that covers only about 70 square kilometers of territory of Kuwait.

Kuwait possesses numerous natural hazards just like cloudbursts that eat place in Kuwait predominantly in autumn and winter (from October till April). Cloudbursts usually bring heavy rain and devastate roads and houses. Inside the summer, Kuwait is exposed to sandstorms that take in location predominantly from March to August.

Kuwait has a number of environmental trouble it is to resolve including limited natural fresh water resources, ever increasing desertification and air and water pollution produced by petrochemical and gas industries of Kuwait.

Currently, the nation of Kuwait is a component of many international agreements including agreement on climate change, desertification, hazardous waste, law with the sea, marine dumping, nuclear test ban, ozone layer protection. The global community pressures Kuwait to ratify Biodiversity and endangered species agreements, yet currently Kuwait doesn't conduct negotiations in these areas.

Kuwait is really a large plain desert with modest altitude changes. Kuwait has 9 modest islands from the largest of them, known as Bubiyan, becoming linked towards mainland Kuwait by a bridge. In 1991 (after the Gulf War), the island of Bubiyan turned into a military base and allows not civilians in. The other islands are named Auhah, Failaka, Kubbar, Miskan, Qaruh, Umm al Maradim, Umm an Namel, and Warbah (Mulloy, 48).

The capital of Kuwait is referred to as Kuwait. The other 3 major cities are Al-Jahrah, Salmiya and Hawalli.

As for the economic development of Kuwait, 1 needs to understand that Kuwait is often a modest yet open economy compared to other Arab nations that is certainly linked strongly for the production of oil and natural gas. Kuwait is said to possess about 90 billion barrels of oil, which would make it about 10% of global oil reserves. Petroleum export accounts for 50% of Kuwait’s GDP and is about 88% of total export earnings generated by Kuwait. Petroleum export accounts for 80% of federal government revenue. As noted earlier, water is scarce in Kuwait for instance arable land, thus, agriculture is non-existent in Kuwait. Kuwait fully depends on imports of food except for fish that's caught by Kuwait fishermen within the Persian gulf. 80% of Kuwait’s water is either imported or distilled. The ever increasing oil prices over the past few many years allowed Kuwait to make a lot more revenues and lower the budget deficit by about 50% to $3 billion in 2002.

The government in Kuwait is rather inactive and doesn't initiate any progressive reforms. The federal government is pro-western and relies on a foreign direct investment during the petrogas industry and oil field development in Northern component of Kuwait. The dependence on foreign capital is said by Iraqi invasion of Kuwait as well as the devastation of its oil infrastructure.

The federal government of Kuwait looks to take in great responsibility within the social welfare development with the nation and sponsors many public works and development plans which is attempts to finance on the oil and investment revenues that Kuwait has at its disposal. Kuwait citizens have a guaranteed retirement income, marriage bonuses, baby bonuses, many housing loans, practically 100% employment, free and simply out there medical services and free education at all levels (Mirepoix, 98). Even foreigners living in Kuwait can pay for most of the free services available to Kuwait nationals. For instance, foreigners aren't allowed to individual stock in publicly traded companies, real estate and Kuwait banks. Also foreigners are not allowed to acquire a majority interest in a business.

Speaking about Market and Development in Kuwait, one can say that the market comprises several big export-oriented organizations dealing with oil, petroleum and natural gas. Also marketplace comprises several refineries and small manufacturers belonging for the petrochemical industry. Water desalinization companies, ammonia/ sulphur, fertilizer producing businesses together with cement and brick/block and construction firms are the ones that account for practically all marketplace in Kuwait. During the war and occupation by Iraq, Kuwait lost most of its machinery and technology. At offer much work is produced to fully replace the lost technology with new and advanced technology as brought to the country of the FDIs (Martin, 51).

Speaking within the Agriculture in Kuwait, a single has to note that it is virtually non existent simply because Kuwait experiences drastic deficit of water and arable land. Kuwait government conducts experiments with growing meals in the system of hydroponics and at carefully managed and government-sponsored farms, yet apparently, the modern day agriculture can't feed Kuwait. One of the most fertile soil of Kuwait was located in south central Kuwait, yet during the war with Iraq it became barren after the fires at the oil wells and oil spills contaminated the area generating oil lakes/ponds. The only other agricultural resource that Kuwait possesses stands out as the shrimp and fish that are plentiful in territorial waters during the Persian Gulf. Kuwait had bought the fishing rights for big scale commercial fishing in the Indian Ocean in the territorial waters of other countries.

Kuwait possess over 40 crude oil and refined oil item tankers/carriers and hosts the largest tanker company within the OPEC organization, called Kuwait Oil Tankers Co (Heatwole, 320).

As for ones trade, finance, and assist produce in Kuwait, one needs to thing out the fact that Kuwait currency unit is referred to as Dinar. Dinar is often a pretty powerful currency that's pegged to a basket of a number of currencies like US dollar, Euro, Japanese Yen, British pound and other. Historically Kuwait runs a balance of payments surplus and this strategy is believed to benefit this small Arab nation greatly from year to year.

As noted earlier, the Kuwait federal government depends greatly on a revenues obtained within the sale of oil, gas and petroleum products and solutions to other countries. Kuwait’s fiscal surplus is usually 10-15% with the GDP during high oil prices and can experience budget deficits during low oil prices as set by the world markets.

The Kuwait federal government has set aside 2 unique reserve funds known as Fund for Future Generations and also the General Reserve Fund, that together possessed over $110 billion ahead of the Iraqi occupation inside the 1990s. At offer these money are believed to become close to $100 billion despite their drastic depletion during the war with Iraq (Sutcliffe, 121). The money are invested from the top world nations like the USA, Germany, Very good Britain, Japan and Southeast Asia (Taiwan). These foreign assets are invested in stocks, bonds, fixed yield instruments and actual estate. The Fund for Future Generations as well as the General Reserve Fund typically obey the conservative investor policy.

One needs to note that despite its small geographic size Kuwait were a principal source of investment and service to other developing Arab countries from the Fund for Arab Economic Development, an independent investment institution that was created in 1962 of the functionality of investing in the neighboring Arab states. In 1975, the Fund for Arab Economic Development started to acquire other developing countries, which were not necessarily Arab.

Kuwait was responsible for your support to Egypt, Syria and Jordan, permit alone to numerous other person businesses located in the middle east. During the Iraq-Iran war, Kuwait supported Iraq and provided tremendous economic assist to the Iraqi leader and the army. In 2000 alone, Kuwait issued loans and technical service grants entirely over $600 million. 

Speaking about some key statistics, 1 requirements to know that the purchasing power parity in Kuwait is $41.46 billion in 2003. The GDP growth rate over the past 5 many years averaged 3%. The per capital purchasing power parity was $19,200 in 2003. Market provided about 60% of the GDP, whilst services account for another 39.5%, leaving 0.5% for agriculture.

Kuwait is thought being a rather stable economy with inflation rarely surpassing 3%. In 2003, inflation rate was only 1.5%. Kuwait possess the labor force of 1.4 million, with non-Kuwaitis accounting for about 75% on the total labor force (Davis, 273). The federal government and social services account for 55% of all occupations, services account for 35%, although marketplace and agriculture account for remaining 10%. The unemployment rate in Kuwait has often been really low and rarely surpassed 2.5%.

The budget of Kuwait oftentimes possesses a surplus. For your year ended 2002, the budget revenues were $28 billion, while budget expenditures have been $16 billion. Despite increasing foreign direct investments in Kuwait, industrial production in 2002 slumped by 4%. Currently, much work is created to engage inside the production of electricity for getting adequate capability to export it.

Currently, Kuwait exports oil, gas and oil-related goods like petroleum and fertilizers accounting for $23 billion to countries like Japan, South Korea, United States, Taiwan or Pakistan.

Imports of Kuwait are usually significantly small and in 2002 accounted for only $10 billion. The primary imports were food, water, construction materials, technology, vehicles and clothes. The imports to Kuwait originate inside the USA, Japan, Germany, China, Europe and Saudi Arabia

Despite impressive GDP and web export figures, Kuwait is really a global debtor owing on the outside globe more than $12 billion in 2003.

The demographics of Kuwait are worth noting because it possesses only about 80% of Arabs, a low figure compared to other Arab countries. Kuwait hosts quite a few Egyptians, stateless Arabs, Indians, Pakistanis, Filipinos, and Bangladeshis. Inside past Kuwait hosted many Palestinians who nevertheless have been ordered to leave Kuwait by Yassir Arafat right after Kuwait invasion by Iraq.

Although the official language in Kuwait is Arabic, the majority of population understands and speaks English. 84% of Kuwait’s citizens are Sunni Muslims. Shii Muslims are a Muslim minority group.

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