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• GDP: US$32.8 billion (2002).
• Main exports: Oil and refined products and fertiliser.
• Main imports: Food, construction materials, vehicles and parts and clothing.
• Main trade partners: UK, Japan, USA and Germany.
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Kuwait’s considerable wealth is the result of the country’s vast oil deposits, estimated at 100 billion barrels (9 per cent
of the world’s total known reserves). With production of over two million barrels daily, oil now accounts for about half of
total output, 90 per cent of export income and three-quarters of government revenue. The economy has long since recovered
from the extensive and systematic looting conducted by Iraqi troops during the occupation of 1990-1. This was estimated to
have cost Kuwait US$170 billion, and the extent of the reconstruction was reflected in the fact that Kuwait was obliged to
liquidate a large proportion of its overseas investment portfolio. These holdings, which are administered by the Kuwait Investment
Office, are used partly to meet the country’s running costs (free education and social services) and partly lodged in the
Fund for Future Generations. During the 1990s, Kuwait, not surprisingly, invested large sums in building up a military apparatus.
There has been some diversification of the economy, promoted and funded by the government. Heavy industrial projects have
been eschewed in favour of light manufacturing industries such as paper and cement production. There is a small fishing industry
and some agriculture. The government has tabled a privatisation programme both as a means to raise revenue and as an instrument
of economic policy. A free-trade zone has also been established. Kuwait is a member of OPEC and of the Gulf Co-operation Council.
The re-emergence of OPEC as a major influence appears to have triggered some disputes inside the Kuwaiti government over oil
production and pricing policy. Japan, The Netherlands and Italy are the main markets for Kuwaiti oil. The principal exporters
to Kuwait are Japan, the USA, Germany and the UK.
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Overview 
