In 1990, after oil production disputes with neighbouring Iraq, Kuwait was invaded, and later annexed into one of Iraq's governorates by Iraq under Saddam Hussein. In the 1980s, Kuwait experienced a period of geopolitical instability and an economic crisis following the stock market crash.

From 1946 to 1982, the country underwent large-scale modernization, largely based on income from oil production.

In 1946, crude oil was exported for the first time. Oil reserves were discovered in commercial quantities in 1938. Before the discovery of oil, Kuwait was a strategic trade port between Mesopotamia, Persia and India. Historically, most of present-day Kuwait was part of ancient Mesopotamia. As of 2022, Kuwait has a population of 4.45 million people of which 1.45 million are Kuwaiti citizens while the remaining 3.00 million are foreign nationals from over 100 countries. Most of the country's population reside in the urban agglomeration of the capital and largest city Kuwait City. Kuwait has a coastal length of approximately 500 km (311 mi). Kuwait also shares maritime borders with Iran. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the north and Saudi Arabia to the south. Kuwait ( / k ʊ ˈ w eɪ t/ ( listen) Arabic: الكويت al-Kuwayt, Gulf Arabic pronunciation: or ), officially the State of Kuwait ( Arabic: دولة الكويت Dawlat al-Kuwayt), is a country in West Asia. Nominal succession within the House of Sabah.

Kuwait city global hub