The United States remains a leading trade partner with Kuwait. In 2024, U.S. exports to Kuwait were valued at $2.41 billion, while U.S. imports from Kuwait stood at $1.64 billion, primarily driven by petroleum products. Kuwaitis frequently travel to the United States, with approximately 5,100 Kuwaiti students continuing their education at U.S. colleges and universities. Americans and U.S. brands, as well as products, are warmly welcomed due to familiarity with U.S. culture. Although Kuwaitis are extremely price-conscious, they are also avid consumers. While Chinese and Indian goods increasingly dominate low-end imports, high-quality U.S. exports remain relatively competitive in Kuwait.

Kuwait is located in the northeast corner of the Arabian Peninsula, at the head of the Arabian Gulf.  Bordered to the north and west by Iraq, to the south and west by Saudi Arabia, and to the east by the Arabian Gulf. Approximately one-third of the population of 4.86 million are Kuwaiti nationals. The remainder consists of expatriate residents hailing from more than 100 countries. The oil industry and government sector dominate the economy, with crude oil reserves estimated at nearly 101.5 billion barrels, or approximately 7 percent of the world’s reserves. The oil industry accounts for 90 percent of government revenues. Oil refining and downstream petrochemical processing are the dominant industries. Non-petroleum manufacturing and agricultural sectors are limited. However, local manufacturing in pharmaceuticals and electronics is growing.

In 2017, the government adopted a new vision “Kuwait Vision 2035”, focused on transforming Kuwait into a regional financial hub, and diversifying the economy away from oil. However, Kuwait has fallen behind in its development goals with many major infrastructure projects cancelled or on hold. 

Kuwait imports most of its capital equipment, foods, manufacturing equipment, consumer goods, and motor vehicles. More than half of the country’s imports originate from the PRC, the United States, the United Arab Emirates (UAE), Japan, South Korea, and Germany. 

According to official data from the World Bank, Kuwait’s GDP in 2024 was estimated at $144.9 billion. Kuwait’s current oil production capacity is estimated at 3.15 million barrels per day. The government hopes to increase production capacity to 4 million barrels per day by 2040. To reach this goal, Kuwait must continue investing in upgrading downstream facilities as well as upstream oil development.

Transportation equipment, including automobiles and automotive parts, is one of the top U.S. exports to Kuwait. In 2024, the United States exported $679 million worth of transportation equipment to Kuwait, accounting for 28.17 percent of all U.S. exports to Kuwait. Oil and gas field equipment, telecommunications and IT equipment, medical equipment, and electronics were also leading export sectors for U.S. firms.

Political Environment

Visit the State Department’s website for background on the country’s political and economic environment.