Overview

The State of Kuwait is situated in the north-east corner of the Arabian Peninsula, bordered by the Republic of Iraq to the north and the Kingdom of Saudi Arabia to the south and west. It also shares a maritime border with the Islamic Republic of Iran. Kuwait covers an area of almost 18,000 square kilometres and has a population of 5.31 million (2026), with expatriate foreign workers accounting for over two thirds of the population.

Kuwait's modern history began with the migration eastward of Arabian Peninsular tribes and their founding of the autonomous Sheikhdom of Kuwait in 1752. Through the 19th century, Kuwait grew into a prominent regional hub for trade, and was particularly known for boat building, and pearling. Kuwait became a British protectorate in 1897 and gained independence in 1961.

In August 1990, Iraq, under Saddam Hussein, invaded and forcibly annexed Kuwait. The subsequent seven-month Iraqi occupation came to an end after direct military intervention by United States-led coalition forces, in which Australia participated.

Oil production in Kuwait began in the 1940s and was nationalised in 1974. Kuwait is a member of the Organization of Petroleum Exporting Countries (OPEC) and is estimated to have the world's seventh largest oil reserves.

Political overview

Kuwait is a constitutional monarchy. The head of state, the Amir, is chosen from the ruling Al-Sabah family. The current Amir is His Highness (HH) Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, who acceded to the position in December 2023. HH Sheikh Sabah Khaled Al-Hamad Al-Sabah was appointed Crown Prince in June 2024.

The Council of Ministers (cabinet) forms the executive level of government, and advises and assists the Prime Minister, who is appointed by the Amir. The Prime Minister is HH Sheikh Ahmad Al-Abdullah Al-Sabah, who was appointed by the Amir in May 2024.

Citing conflict between parliament and the Cabinet, in May 2024, the Amir dissolved Kuwait’s National Assembly (parliament) and suspended selected constitutional provisions for up to four years, transferring legislative authority to the Amir and Council of Ministers.

In addition to being a member of the Gulf Cooperation Council, which includes Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE), Kuwait is also a member of the Arab League, the Organisation of Islamic Cooperation (OIC), OPEC, the World Trade Organization and the United Nations and its various agencies.

Bilateral relations

Australia and Kuwait enjoy a friendly and cooperative relationship. Relations are underpinned by strong trade and investment ties and people-to-people links, including across the education, science and research spheres. Kuwait values Australia's contribution to the coalition force that liberated Kuwait in 1991, and our support for Kuwait's independence and territorial integrity.

Diplomatic relations between the two countries were established formally in 1974 and Australia opened an Embassy in Kuwait City in December 2004. The then Foreign Minister of Australia, Stephen Smith, officially opened the Australian Embassy at its current premises when he visited Kuwait in June 2008. Kuwait upgraded its Liaison Office in Canberra to an Embassy in January 2002 and opened a cultural office in 2008.

Kuwait and Australia held their second Senior Officials' Talks in November 2024 in Kuwait City, which involved a variety of government and commercial stakeholders. Trade, investment and education formed a key focus of discussions.

Economic overview

Kuwait’s GDP is estimated at around USD 150 billion. Its economy is dominated by the oil industry, which accounts for approximately 40 per cent of GDP,  90 per cent of government revenue, and 95 per cent of its exports. The Kuwaiti government contributes a high proportion of its revenue into its sovereign wealth fund, known as the Future Generations Fund and managed by the Kuwait Investment Authority (KIA). It is one of the world’s-largest sovereign wealth funds, with over USD one trillion in assets under management.

Kuwait has one of the oldest economic systems in the Middle East, with a stock exchange dating back nearly 60 years and a well-developed banking system. Kuwait has implemented reforms to allow 100 per cent foreign ownership of inward foreign investments in most non-oil and gas sectors and is seeking to attract more foreign businesses into Kuwait. Major sectors include logistics, education, chilled and frozen meat, dairy, consulting, real estate, financial services engineering and construction services, water desalination, renewable energy and waste management.

Bilateral trade and investment

The trade relationship is substantial. Two-way goods and services trade amounted to approximately AUD 600 million in 2025, however the real figure is likely much higher as it does not include exports trans-shipped through Dubai.

Kuwait is a significant market for Australian exports of wheat, sheep and beef meat, dairy products, education-related travel and barley. Australia’s main imports from Kuwait are travel services.

Kuwait is also an important market for Australian education and tourism services that strengthen people-to-people links. In 2025, there were 677 Kuwaiti students studying at Australian universities, the majority on Kuwait Government scholarships. In 2025, Kuwait’s Ministry of Higher Education increased the number of majors eligible for scholarships in Australian universities for Kuwaiti students. The establishment of the Australian University (formerly the Australian College of Kuwait) in January 2022, and Box Hill College of Kuwait in 2007 adds to our educational links.

Up to 1,000 Australians reside in Kuwait, employed mainly in the education, banking, oil and gas and security industries. Australian companies with offices in Kuwait are predominately centred on engineering and construction management services, and education.

Kuwait's investments in Australia are estimated at around AUD 17 billion (2025), primarily through KIA, and the Kuwait Foreign Petroleum Exploration Company (KUFPEC). Areas of investment include the oil and gas sector, agriculture, real estate, airports, hotels, banking and green energy generation.

There is considerable scope for Australia to increase the bilateral commercial relationship with Kuwait. Kuwait's plans to develop infrastructure mega-projects and to diversify the skills base of its citizens represent significant opportunities for Australian companies. English is widely spoken, and Kuwait has low import tariffs and taxes. The number of Australian food and beverage products in Kuwait has increased in recent years.

High-level visits

• November 2024: Australia’s Ambassador for Gender Equality, Stephanie Copus-Campbell, visited Kuwait.
• November 2024: the second round of Senior Officials Talks were held in Kuwait City.
• January 2019: Parliamentary Delegation visited Kuwait.
• May 2018: The Hon David Littleproud, then-Minister for Agriculture and Water Resources visited Kuwait.
• February 2018: The Hon Julie Bishop, then-Minister for Foreign Affairs visited Kuwait.