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Introduction Kuwait is a small, rich, relatively open economy with proved crude oil reserves of about 96 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income
Kuwait's economy is mainly based on oil exports. Oil and oil related products have tended to dominate the economy since the production of oil from the Burgan field commenced in the 1940s.
Kuwait has about 96.5 billion barrels of recoverable oil. It is estimated that the country oil resources will last for another 100 years at current rate of extraction.
As long as oil remains a valuable energy source, it will continue to play a substantial role in the future economy of the country.
But Over reliance on oil:With production over two million barrels daily, oil now accounts for an about half of total output, 90% of exports income and 3/4 of governments revenue. Although the country has enjoyed the benefits of high price of oil, nevertheless it's heavy reliance on one source does expose it's economy and its investment in KIA to the risks of major shortfalls in income and savings in case if a war and /or fall in the price of oil .
And what's shocking is that the oil company in Kuwait revealed that the second largest oil field in the world which is Burgan field is exhausted and past it's peek and starts to run out of oil , for Burgan has been pumping for almost 60 years ,
According his highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah in his statement before the Fourth Special Session of the General Assembly
on the acceptance of Kuwait to the United Nations :
Kuwait has hitherto depended to a large extent on one single source of income, namely, oil. This course is fraught with danger. In view of this, Kuwait has instituted a board of economic and social planning to devise projects which aim at the diversification and development of other sources of national income.