the Reserve Bank of India, was replaced by the Kuwaiti dinar. The discovery of large oil fields, especially the Burgan field, triggered a large influx of foreign investments into Kuwait. The massive growth of the petroleum industry transformed Kuwait from a poor pearl farming community into one of the richest countries in the Arabian Peninsula and by 1952, the country became the largest exporter of oil in the Persian Gulf region. This massive growth attracted many foreign workers, especially from Egypt and India. Kuwait settled its boundary disputes with Saudi Arabia and agreed on sharing equally the neutral zone's petroleum reserves, onshore and offshore. After a brief stand-off over boundary issues, Iraq formally recognized Kuwait's independence and its borders in October 1963. During the 1970s, the Kuwaiti government nationalized the Kuwait Oil Company, ending its partnership with Gulf Oil and British Petroleum. In 1982, Kuwait experienced a major economic crisis after the Souk Al-Manakh stock market crash and decrease in oil price.[20] However, the crisis was short-lived as Kuwait's oil production increased steadily to fill the gap caused by decrease in Iraq's and Iran's oil production levels following the events of the Iran–Iraq War. In 1983, a series of six bomb explosions took place in Kuwait killing five people. The attack was carried out by Shiite Dawa Party to retaliate Kuwait's financial support to Iraq during its war with Iran.[21] Kuwait had heavily funded Iraq's eight year-long war with Iran. After the war ended, Kuwait declined an Iraqi request to forgive its US$65 billion debt.[22] An economic warfare between the two countries followed after Kuwait increased its oil production by 40 percent.[23] Tensions between the two countries increased further after Iraq alleged that Kuwait was slant drilling oil from its share of the Rumaila field.[23] On 2 August 1990, Iraqi forces invaded and annexed Kuwait. A long-time ally of Saddam Hussein, Yemen's President, Ali Abdullah Saleh was quick to back Saddam Hussein's invasion of Kuwait.[24] Saddam Hussein, then President of Iraq, deposed the Emir of Kuwait, Jaber Al-Sabah, and initially propped up a puppet régime before annexing Kuwait and installing Ali Hassan al-Majid as the new governor of Kuwait.[25] During the Iraqi occupation, about 1,000 Kuwaiti civilians were killed and more than 300,000 residents fled the country.[26] After a series of failed diplomatic negotiations, the United States-led coalition of thirty-four nations fought the Gulf War to remove the Iraqi forces from Kuwait. On 26 February 1991, the coalition succeeded in driving out the Iraqi forces, restoring the Kuwaiti Emir to power.[27] Kuwait paid the coalition forces US$17 billion for their war efforts.[27] During their retreat from the coalition, the Iraqi armed forces carried out a scorched earth policy by damaging 737 oil wells in Kuwait, of which approximately 600 were set on fire.[28] It was estimated that by the time Kuwait was liberated from Iraqi occupation, about 5 to 6 million barrels (950,000 m3) of oil was being burned in a single day because of these fires.[29] Oil and soot accumulation had affected the entire Persian Gulf region and large oil lakes were created holding approximately 25 to 50 million barrels (7,900,000 m3) of oil[30] and covering 5% of Kuwait's land area.[28] In total, about 11 million barrels (1,700,000 m3) of oil was released into the Persian Gulf[31] and an additional 2% of Kuwait's 96 billion barrels (1.53×1010 m3) of crude oil reserves were burned by the time the oil fires were brought under control.[32] The fires took more than nine months to extinguish fully and it took Kuwait more than 2 years and US$50 billion in infrastructure reconstruction to reach pre-invasion oil output.[33] Kuwait has since largely recovered from the socio-economic, environmental, and public health effects of the Persian Gulf War. Politics Main articles: Politics of Kuwait and Human rights in Kuwait See also: Al-Sabah, Elections in Kuwait, and Political Issues in Kuwait United States Chairman of the Joint Chiefs of Staff, Martin Dempsey, with Kuwaiti Prime Minister Sheikh Jaber Mubarak Al-Sabah in 2011. The Bayan Palace serves as the seat of the Government of Kuwait Kuwait is a constitutional monarchy and has the oldest directly elected parliament among the Arab states of the Persian Gulf.Currently the country is under the reign of the Al Sabah family. The head of state is the Emir or Sheikh, a hereditary office. A council of ministers, also known as cabinet ministers, aids the Prime Minister, and appoints and dismisses diplomats. Legislative power is vested in the Emir and the National Assembly in accordance with the Constitution. The Emir of Kuwait is immune and inviolable: any criticism against him is not tolerated and punishable by law.[citation needed] He can dissolve the National Assembly and call a national election, or in cases of national emergency can dismiss the National Assembly outright and assume supreme authority over the country. The Emir is the commander in chief of Kuwait's armed forces. The Emir has authority to grant pardon from the death penalty or prison. The National Assembly consists of fifty elected members, who are chosen in elections held every four years. Government ministers are also granted membership in the parliament and can number up to sixteen excluding the fifty elected members. According to the Constitution of Kuwait, nomination of a new Emir or Crown Prince by the ruling Al-Sabah family has to be approved by the National Assembly. If the nominee does not win the votes of the majority of the assembly, the royal family must submit the names of three other candidates to the National Assembly, and the Assembly must approve one of them to hold the post. Any amendment to the constitution can be proposed by the Emir but it needs to be approved by more than two-thirds of the members of the National Assembly before being implemented.[34] There have been several conflicts between the Emir, the government and the National Assembly over various policies. The National Assembly was suspended from 1976 to 1981, from 1986 to 1991 and from May 1999 to July 1999, due to irresolvable conflicts between some members of the government and the Assembly.[35] The Assembly was dissolved again in May 2009 by the Emir leading to the resignation of Prime Minister Sheik Nasser Mohammad al-Ahmad al-Sabah and the rest of the Cabinet.[36] Nationwide elections were held on May 16, 2009.[37] More than two-thirds of those who reside in Kuwait do not hold Kuwaiti citizenship and thus cannot vote in parliamentary elections. Additionally, prior to 2005, only 15% of the Kuwaiti population were allowed to vote, with all "recently naturalized" citizens (i.e. those of less than thirty years' citizenship), and members of the Kuwaiti Armed Forces excluded. On 16 May 2005, Parliament permitted women's suffrage by a 35–23 vote. The decision raised Kuwait's eligible voter population from 139,000 to about 339,000. In 2006, Kuwaiti citizens were estimated to be more than 960,000. In 2005, the former Prime Minister Sheikh Sabah al-Ahmad al-Sabah announced the appointment of the first woman as a cabinet minister, Massouma Mubarak. She was designated Planning Minister and Minister of State for Administrative Development Affairs.[38] During the 2008 parliamentary elections, 27 of the 275 candidates were women. However, none of them won.[39] In the parliamentary elections on 16 May 2009, 16 female candidates contested for 50 seats for a four-year term. Four female candidates won their seats and became Kuwait's first female lawmakers.[40] In April 2010, Kuwait's government, unhappy about possible democratic change in Egypt by Mohamed ElBaradei's National Association for Change, deported 17 Egyptians for trying to organize a local chapter of the Association in Kuwait.[41] Heads of Kuwait Supreme Commander: Sabah Al-Ahmad Al-Jaber Al-Sabah Executive Branch: Jaber Al-Mubarak Al-Hamad Al-Sabah Legislative Branch: ---- Judicial Branch: Sabah Al-Ahmad Al-Jaber Al-Sabah, Kuwait Courts Foreign relations and military Main article: Foreign relations of Kuwait Location of diplomatic missions of Kuwait:   Kuwait   Embassy The State of Kuwait became the 111th member state of the United Nations on May 14, 1963. It is a long-standing member of the Arab League and the Organization of Islamic Cooperation. It is also a key member of the Cooperation Council for the Arab States of the Gulf, also known as the Gulf Cooperation Council (GCC), along with Bahrain, Qatar, UAE, Oman and Saudi Arabia. Having modeled the GCC on the European Union, member states enjoy free trade and citizens of GCC member states can travel to other GCC countries with their civil identification, not requiring visas. Kuwait's relationship with its neighbors has been influenced by the Sunni-Shia conflict. After the Iranian revolution of 1979, Sunni-majority Kuwait began supporting the Sunni regime of Iraq's Saddam Hussein in its subsequent eight-year war with the hardline Shia regime of Iran. Despite prior tensions, Kuwait and Saudi Arabia provided considerable financial support to Saddam Hussein's Iraq. Kuwait's ties with Iraq remained severed after the 1991 Gulf War, until the fall of Saddam Hussein's regime. Kuwait enjoys a strong relationship with Saudi Arabia, which provided considerable support for the deposed royal family of Kuwait. Although fairly cordial, Kuwait's relations with Iran remain hinged on the stability of the Shia-Sunni conflict and rival goals for the control of the Persian Gulf. Kuwait's ties with states that supported Saddam Hussein's invasion, such as Yemen and the Palestine Liberation Organization, remain testy, although Kuwait has always refused to establish ties with Israel. Kuwait enjoys a strong relationship with the United States, playing host to major U.S. military bases. Following U.S. leadership in the effort to liberate Kuwait, both nations have forged close political and economic relations. Although most Arab nations expressed opposition to the U.S.-led invasion of Iraq in 2003, Kuwait supported it and provided its territory as a launching pad for the invasion. The State of Kuwait spends close to US$ 5 billion for defense. Its military consists of the Kuwaiti army, with an estimated strength of 15,000 personnel, the Kuwaiti navy, with 2,000 naval personnel and 400 coast guards, and the Kuwaiti Air Force, with an estimated strength of 2,500 personnel. The Kuwaiti National Guard is the main internal security force. Owing to its demographics and small population, Kuwait has not been able to build a sizeably large military and therefore collaborates extensively with foreign nations to preserve its security. After liberation from Iraq, Kuwait signed long-term defense cooperation agreements with the United States, Britain and France, and purchased military equipment from Egypt, Russia and the People's Republic of China as well. Geography and climate Main articles: Geography of Kuwait and Climate of Kuwait Map of Kuwait 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.[1] It has nine islands, all of which with the exception of Failaka Island are uninhabited.[42] 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.[43] The land area is considered arable[1] and sparse vegetation is found along its 499 km long coastline.[1] 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 (1.1×1010 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).[44] 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.[29] The oil spills during the Gulf War also drastically affected Kuwait's marine resources.[45] 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.[46] Climate data for Kuwait Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Average high °C (°F) 18 (64) 21 (70) 26 (79) 31 (88) 38 (100) 43 (109) 43 (109) 44.5 (112.1) 41 (106) 35 (95) 26 (79) 19 (66) 32.1 (89.8) Average low °C (°F) 7 (45) 9 (48) 13 (55) 18 (64) 24 (75) 27 (81) 29 (84) 28 (82) 24 (75) 19 (66) 13 (55) 8 (46) 18.3 (64.9) Precipitation mm (inches) 25.4 (1) 15.2 (0.598) 12.7 (0.5) 15.2 (0.598) 5.1 (0.201) 0.20 (0.0079) 0 (0) 0 (0) 0 (0) 2.5 (0.098) 12.7 (0.5) 17.8 (0.701) 106.8 (4.205) Source: weather.com[47] Sandstorm over Kuwait in April, 2003 Topography of Kuwait Sandstorm over Al Ahmadi in 2011 The Burqan Field Nine Islands of Kuwait Governorates Main article: Governorates of Kuwait Kuwait is divided into 6 governorates (muhafazah). The governorates are further subdivided into districts. Subdivision Capital Area km² Population Census of 2005 Created Al Ahmadi1) Al Ahmadi 5 120 393 861 1946 from Al Asimah Al Asimah (Al Kuwayt)2) Al Kuwait 200 261 013 original Governorate Al Farwaniyah Al Farwaniyah 190 622 123 1988 from Al Asimah Al Jahra3) Al Jahra 12 130 272 373 1979 from Al Asimah Hawalli Hawalli District 84 487 514 original Governorate Mubarak Al-Kabeer Mubarak Al-Kabeer 94 176 519 Nov. 1999 from Hawalli TOTAL 17 818 2 213 403   1) The Neutral Zone was dissolved on Dec. 18, 1969, and the northern part with 2590 km² 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 Economy Main article: Economy of Kuwait Kuwait City, the main economic hub of the country An oil refinery in Mina-Al-Ahmadi, Kuwait Kuwait has a GDP (PPP) of US$167.9 billion[48] and a per capita income of US$81,800,[48] making it the 5th richest country in the world, per capita.[10] According to the 2008 Index of Economic Freedom, Kuwait has the second-most free economy in the Middle East.[49] In March 2007, Kuwait's foreign exchange reserves stood at US$213 billion.[50] The Kuwait Stock Exchange, which has about 200 firms listed, is the second-largest stock exchange in the Arab world with a total market capitalization of US$235 billion.[51] In 2007, the Kuwaiti government posted a budget surplus of US$43 billion.[52] Kuwait has a proven crude oil reserves of 104 billion barrels (15 km³),[48] estimated to be 10% of the world's reserves. According to the Kuwaiti constitution, all natural resources in the country and associated revenues are government property.[53] Being a tax-free country, Kuwait's oil industry accounts for 80% of government revenue. Petroleum and petrochemicals accounts for nearly half of GDP and 95% of export revenues. Increase in oil prices since 2003 resulted in a surge in Kuwait's economy.[54] Kuwait's current oil production of 2.8 million bpd is expected to increase to 4 million bpd by 2020.[55] To realize this production target, Kuwait Petroleum Corporation plans to spend US$51 billion between 2007 to 2012 to upgrade and expand the country's existing refineries.[56] However, the country's economy was badly affected by the global financial crisis of 2008.[57] In 2009, the Central Bank of Kuwait devised a US$5.15 billion stimulus package to help boost the economy.[58] Other major industries include shipping, construction, cement, water desalination, construction materials and financial services.[48] Kuwait has a well developed banking system and several banks in the country date back to the time before oil was discovered. Founded in 1952, the National Bank of Kuwait is the largest bank in the country and one of the largest in the Arab world.[59] Other prominent financial institutions based in Kuwait include the Gulf Bank of Kuwait and Burgan Bank, which is named after the largest oilfield in the country. Kuwait's climate limits agricultural development. Consequently, with the exception of fish, it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. The government is keen on decreasing Kuwait's dependence on oil to fuel its economy by transforming it into a regional trading and tourism hub. The planned US$77 billion Madinat al-Hareer (City of Silk) is the largest real estate development project in the Middle East.[50] The Central Bank issues Kuwait's currency, the Kuwaiti dinar. As of December 2007, the dinar was the highest-valued currency unit in the world.[60] In 2007, estimated exports stood at US$59.97 billion and imports were around US$17.74 billion. Petroleum, petrochemical products, fertilizers and financial services are major export commodities. Kuwait imports a wide range of products ranging from food products and textiles to machinery. Kuwait's most important trading partners are Japan, United States, India, South Korea, Singapore, China, European Union and Saudi Arabia.[48] Japan is the largest customer of Kuwaiti oil followed by India, Singapore and South Korea.[61] On January 5, 2010,Kuwait has started the construction of Salmiya Park in Salmiya. The Heads said "it would take atleast 4 years to complete Salmiya Park" Education Main article: Education in Kuwait 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