The country's oil fields were first exploited in the 1930s, and since the development of the petroleum industry after World War II and independence in 1961, oil has dominated the economy, making up around 90% of export revenues.

OVERVIEW

1991, the country was the scene of a massive US-led international military campaign to oust Iraqi forces, which had invaded the year before. Operation Desert Storm saw their eventual removal, but Kuwait's infrastructure was left in bad shape and had to be rebuilt. Oil exports ceased for a period during this time.

 Twelve years later, Kuwait played host to another massive military presence as thousands of soldiers massed on the Iraqi border for the US-led campaign in 2003 to disarm and oust the Iraqi leader Saddam Hussein. It remains an important transit route for forces and civilians moving in and out of Iraq.

Kuwait was the first Arab country in the Gulf to have an elected parliament. In recent years there have been attempts to change the male-dominated political structure, with a legal challenge against the government to allow women the vote and to stand in office.

In 1999 the country's ruler, Sheikh Jabir al-Ahmad al-Sabah, issued a decree giving women full political rights, but the move was narrowly defeated in the National Assembly. Kuwait has faced a recent spate of militant violence.

 Security forces have clashed with Islamist militants, some of whom are alleged to have links with al-Qaeda. The authorities say extremist groups have plotted attacks on Western targets.

FACTS

•  Population: 2.7 million (UN, 2005)
• Capital: Kuwait
• Area: 17,818 sq km (6,880 sq miles)
• Major language: Arabic
• Major religion: Islam
• Life expectancy: 75 years (men), 79 years (women)(UN)
• Monetary unit: 1 Dinar = 1000 fils
• Main exports: Oil
• GNI per capita: US $16,340 (World Bank, 2002)
• Internet domain: .kw
• International dialling code: +965

LEADERS

Sheikh Jabir al-Ahmad al-Jabir al-Sabah Sheikh Jabir Sheikh Jabir succeeded his cousin, Sheikh Sabah al-Salim al-Sabah, as emir in December 1977, having been prime minister (1965-78) and heir-apparent from 1966.

The emir is in his seventies; he suffered a minor stroke in 2001. Members of the ruling family hold most of the key cabinet posts. Sheikh Jabir has been a decisive leader, having allowed the National Assembly to reform in 1981 and dissolving it in 1986 as disagreements arose over its right to question the ability of ministers.

He survived an assassination attempt in 1985 and the Iraqi invasion of Kuwait in August 1990. He fled to Saudi Arabia, where he established a government in exile, returning home in March 1991 after Iraq's withdrawal.

During his exile he gained the support of Kuwait's opposition leaders in return for his agreement to restore the National Assembly. He did this in 1992.

• Deputy emir, crown prince: Sheikh Sa'd al-Abdallah al-Salim al-Sabah
• Prime minister, foreign minister: Sheikh Sabah al-Ahmad al-Jabir al-Sabah
• Deputy prime minister, defence minister: Sheikh Jabir Mubarak al-Hamad al-Sabah

MEDIA

Kuwait has some of the most outspoken newspapers in the Arab world, often aggressive in their coverage of politics and the government. Journalists enjoy greater freedoms than some of their regional counterparts, but restraint is exercised when covering matters relating to the emir and senior royals. A press law forbids insulting references to God and the Prophet, and prescribes prison sentences for transgressors.

The state owns and controls most of Kuwait's television stations; there are no privately-owned radio broadcasters. Satellite dishes are widely used and enable viewers to watch popular pan-Arab broadcasters. Newspaper publishers must have licences from the Ministry of Information.

The ministry censors books, films, periodicals and other imported publications deemed morally offensive. The BBC World Service is available on FM in Kuwait City.

The press

• Al-Watan - private, daily
• Al-Qabas - private, daily
• Al-Ra'y al-Amm - private, daily
• Kuwait Times - English-language
• Arab Times - English-language

Television

Kuwaiti TV - state-run, operates three networks and satellite channel

Radio

Radio Kuwait - state-run, programmes in English and Arabic

News agency

Kuwait News Agency (Kuna) - in Arabic and English