Kuwait at a Glance  Government   Formal Name State of Kuwait (Dawlat al Kuwayt)   Short Form Kuwait (Al Kuwayt)   Capital Kuwait City  Kuwait contains 96.5 billion barrels of proven oil reserves (including its  share of the Neutral Zone), or roughly 9% of the world's total oil reserves.  Along with Saudi Arabia and the United Arab Emirates, Kuwait remains one of the  few oil producing countries with significant excess oil production capacity. Government Type Constitutional monarchy   Date of  Independence June 19, 1961   Constitution Approved and  promulgated November 11, 1962   Executive Power exercised by the  Amir through Council of   Ministers (frequently referred to as "the  government") headed by   a prime minister who is chosen by the Amir after  traditional   consultations   President (Amir) Sheikh Jaber  Al-Ahmed Al-Jaber Al-Sabah   (1/31/77-present)   Prime Minister Sheikh Saad Abdullah Al-Salim Al-Sabah    (2/8/78-present)   Judicial System Based on the Egyptian model,  it is an amalgam of Islamic law, English common law, and the Ottoman civil  code. Personal and family matters such as divorce and inheritance  are governed by separate family courts operating under religious laws, each religious tradition (e.g. Sunni, Shia, Christian) having its  own set of laws and courts.   Legislature Unicameral National  Assembly (Majlis al-Umma) of 50 members elected by popular vote to serve  4-year terms   Political Parties Not permitted, though there are  formal political groupings that back MPs and candidates   Suffrage Male citizens 21 and older. With the median age  below the  age of majority, the national constituency is  approximately 113,000,  making up roughly 15 percent of  Kuwaiti nationals. To avoid politicizing  certain groups tied to the  government, neither judges, nor the uniformed  services (i.e.  police and military personnel) vote.   Geography   Land Area 17,818 square kilometers  (6,880 square miles),  including the Kuwaiti share of the Neutral Zone  (2,590 sq km).   Topography Almost entirely flat  desert.   Climate Although summers are long, hot, and mostly dry,  with  daily temperatures between 43º and 47ºC (110º and 120ºF) and  high humidity in August. The fall and spring are pleasant and  mild;  winters are short and relatively cool. Sandstorms in June  and July; some  rain, mainly in winter and spring.   Boundaries Border with  Saudi Arabia set in 1922 Treaty of  Al-Uqair, which also established  Kuwait-Saudi Arabia Neutral  Zone. In 1966 Kuwait and Saudi Arabia agreed  to divide the  Neutral Zone; the partitioning agreement making each  country  responsible for administration in its portion was signed in   December 1969.   Iraq accepted the mutual border in 1963, based  on earlier  agreements. Historical border definitively demarcated by a  UN  commission 1992; Iraq accepted the demarcation in November 1994.   People   Nationality   Kuwaiti(s); adjectival form, Kuwaiti   Population (total) 2.274  million (June 30th 1999; Source:  Public Authority for Civil Info.)   Kuwaitis 798,200 (35.1% of total)   Non-Kuwaitis 1.476 million (64.9% of total)   Urban  population 97.1% (1996)   Adult Literacy Rate 85%  (age  15+)    Male/Female Ratio: 1.57 Males for every Female   Religion Most Kuwaitis are Sunni Muslims. About 25% of   citizens are  Shia Muslims. Freedom of religion is guaranteed by   law and foreigners  practice Islam and Christianity as well as   other religions. There are  several Christian churches in Kuwait.   Languages Arabic  (official). English is widely understood   Basic  Data   Currency Kuwaiti Dinar (KD) = 1,000 fils. Exchange  rate on  June 30, 1999: US$1.00 = KD0.306   Time 3 hours  ahead of GMT; 8 hours ahead of EST.   Country Code ++(965)  Kuwait has no city codes   (Note: International Direct Dialing Codes,  which must be  dialed before the country code and number, differ  depending  on where the call is placed. From the U.S., it is  "011")   Weights and Measures Metric system and regional  measures   Public Holidays Thursday and Friday are the official  weekly  days off. Most banks and the Kuwait Petroleum Corporation  and  most of its affiliate companies take Friday and Saturday off.  Holidays include New Year's Day (January 1),   Kuwait National Day  (February 25), and Liberation Day (February 26),   Prophet's Birthday, the  Ascension of the Prophet, and the Hijra New Year. For Eid Al-Fitr, the  "breaking of the fast"' at the end of Ramadan, there is usually a  three-day holiday. For Eid Al-Adha there is usually a four-day holiday. (  Note:The dates of religious holidays change yearly, because Kuwait uses the Islamic or hijra calendar, dating from the year 622 AD and based  on the lunar year, which is roughly 11 days  shorter than the Gregorian  year.

BACKGROUND
     As one of the world's leading oil producing states,  Kuwait's economy is heavily dependent on oil revenues. With the steep rise in  oil prices in late 1999 and 2000, Kuwait has reaped a revenue windfall. Kuwait's  real gross domestic product (GDP) grew by 2.1% in 1999, after falling 10.5%  during the slump in oil prices in 1998. Real GDP growth for 2000 is projected at  5.5%.
     The period of low oil prices in 1998 and early 1999 spurred the Kuwaiti  government to take action to begin reducing government subsidies, which provide  many services to Kuwaiti citizens at little or no cost. Even with the recent  rise in oil prices, these efforts have continued.
     Kuwait has started a program to privatize state-owned businesses (outside the  oil sector) as a way of reducing subsidies. As part of this program, the Kuwaiti  government has begun privatizing health care, electricity, and  telecommunications assets. Privatization is complicated by the need to protect  the jobs of Kuwaiti citizens, who traditionally have been employed mostly (93%)  by state-owned enterprises and the government. Overall, though, the government  is attempting to reduce its involvement in the economy, reducing its budget  deficit by cutting subsidies and increasing revenues.
     In the oil sector, the Kuwaiti constitution forbids foreign ownership of  Kuwait's mineral resources, but the Kuwaiti government is exploring allowing  foreign investment in upstream oil development under terms which provide for  per-barrel fees to the foreign firms rather than traditional production sharing  agreements (PSA's). The idea is highly controversial in Kuwait, and thus far  opposition in the Kuwaiti parliament has stalled the initiative.
     Kuwait's foreign policy continues to focus on regional security issues. Since  Operation Desert Storm in 1991, Kuwait has maintained close military cooperation  with Western countries. In October 1994, the United States, the United Kingdom  and other countries came to Kuwait's assistance after Iraq moved 70,000 troops  and heavy armor close to the Kuwaiti border. In November 1994, Iraq officially  recognized Kuwait's sovereignty, territorial integrity and political  independence, as well as its borders as defined by the United Nations. Kuwait  welcomed the move but continues to demand the release of all Kuwaiti citizens  detained in Iraq and called for international sanctions against Iraq to be  maintained until it was in compliance with all pertinent U.N. resolutions