Saudi Arabia and Kuwait

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  • Topic: Kuwait, Gulf War, Saudi Arabia
  • Pages : 3 (931 words )
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  • Published : November 29, 2007
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Kuwait: Geopolitically "Undeveloped"?

Kuwait is a city that may not seem to have much to offer to the normal US citizen. Having traveled to many cities and different countries in my life, I know that personally Kuwait is a city that I never had the desire to ever want to visit. Kuwait is a city that has a small percentage of Arabic land and permanent crops, therefore agriculture is virtually nonexistent. But, it's not what's above ground that makes this small country a intricate part in the world's economic community. Kuwait is located upon a large natural gas reserve, as well as one of the top ten largest oil reserves in the world. Kuwait makes use of their fossil fuels to make up for what they are lacking nearby. Kuwait is a small, rich, relatively open economy with proved crude oil reserves of 94 billion barrels, 10% of world reserves. Petroleum accounts for nearly half of GDP, 90% of export revenues, and 75% of government income. 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. (citation?) Kuwait continues its discussions with foreign oil companies to develop fields in the northern part of the country. By 1990 the country earned more from foreign investment than from oil exports. The expenses of the Iraqi invasion and postwar reconstruction placed a heavy economic burden on the country, but by the mid-1990s Kuwait had resumed control over their resources.

The currency of Kuwait is the Kuwaiti dinar. The dinar is valued at 0.351676 KWD per 1EUR and at 0.292010 KWD per every 1USD, making it the highest-valued currency in the world. (Cite this) With this being said, it is still hard to fathom Kuwait as being an undeveloped region in the world. Kuwait's infrastructure took a considerable beating during the 1st Gulf War. Hundreds of oil wells were put on fire and the country's oil production had...
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