Sun, 25 Feb 2001

From a desert to a land of many dreams

Strolling across Kuwait City, it is not surprising that this small Arabian Gulf state has been called "the miracle on the desert sands."

Despite the tremendous ordeal and setbacks it endured during the Iraqi occupation and Gulf War of 1990-1991, the state and people of Kuwait have prevailed.

The fruits of success are there to be proudly reaped as it celebrates its National Day on Feb. 25.

What started out as a small hamlet, straddling the northwest corner of the Persian Gulf, has evolved into a principal presence in the Gulf, far outweighing its meager size and dwarfed only in land mass by neighbors Saudi Arabia, Iraq and Iran.

With a total area of just 17,818 square kilometers (smaller than West Java), Kuwait is a perfect example where sometimes size doesn't matter!

Nevertheless in spite of its economic prosperity with a GNP per capita of about US$17,390, the some two million people of Kuwait still cling jealously to their traditions.

It is this loyalty to their beliefs and cultural identity that has formed the bedrock for Kuwait to launch itself to become one of the most developed modern states in the world.

Thus, it is not surprising that, despite its distance, President Abdurrahman Wahid made it a point to visit Kuwait last year.

Despite being a predominantly rolling desert plateau which slopes down from the west, Kuwait has been blessed with profuse oil reserves.

It is estimated that one-tenth of the world's proven crude oil reserves are buried within Kuwait territory. Not surprisingly, the petroleum sector is the country's predominant sector, accounting for some 90 percent of export revenue and 70 percent of government income.

While there are strong cultural and political compatibilities between Kuwait and Indonesia, the petroleum sector has been the primary catalyst in fueling warm relations between the two countries in recent years.

History

Archeological studies suggest that the area now known as Kuwait was closely linked to the Dilmun civilization of the late third and early second centuries B.C.

The center of Dilmun civilization was in the area of Bahrain, and Kuwait's Failaka Island, located in the Bay of Kuwait, functioned as a port to Mesopotamia, the Indus Valley and Magan, or what is now the United Arab Emirates.

The island, and eventually the mainland, further prospered with the coming of the ancient Greeks and later Islam in the seventh century as the Gulf became a thriving maritime artery in medieval Islamic times.

Maritime-based commerce persisted for many centuries. In the 15th and 16th century, the Portuguese dominated the waters in the area.

Then England's East India Company took prominence in the 17th century. The British presence would continue to have a crucial impact on the area until the 20th century when it became a British protectorate in 1914 and the birth of the Kuwait state in 1961.

The emergence of the Al-Sabah family who are now the constitutional monarchs of Kuwait, can be traced back to the 18th century when Sabah bin Jabir became sheikh of Kuwait.

Under his leadership, later continued by his son, stability reigned and the economy grew.

The current Amir of Kuwait is His Highness Sheikh Jaber, who is the third son of the late Sheikh Ahmad Al-Sabah, the former ruler of Kuwait.

Born in 1928, Sheikh Jaber began his public service as director of public security for the Ahmadi region.

Ten years later he headed the finance department, which became the Ministry of Finance and Economy after Kuwait's independence in 1962.

Sheikh Jaber led the new ministry. He later became Prime Minister of the young state.

In 1965, an Amiri Decree was issued designating him as Crown Prince after his nomination was unanimously approved by the National Assembly. His Highness Sheikh Jaber was proclaimed Amir of the State of Kuwait on December 31, 1977, the 13th Amir from the Al-Sabah family.

The Land, the People

The mainland of Kuwait along with its nine islands, is completely unlike islands in Indonesia. There are no tropical jungles. The scenery is dominated by sandy plateaus.

In recent years, some green areas, by the irrigation of imported soil, have been sighted in modern urban districts. Hydroponics and hothouses also produce vegetables and fruits.

The climate varies from the warm days and cold nights of winter to very hot summers, midsummer temperatures peaking at some 55 degrees Celsius.

Sandstorms are also prevalent in summer because of the rise in humidity.

The wide fluctuations in temperature, from 45 degrees in the summer to about eight degrees in the winter, also brings about dramatic changes in the annual rainfall, which can jump from a mild 22 millimeters in one year to 352 mm in the next.

The original inhabitants of Kuwait, themselves Arabic by descent, trace their lineage in Kuwait to around 850 B.C. Currently they make up about 40 percent of the total population of about two million.

The other residents comprises those from other Middle Eastern countries. There are also a large number of temporary residents from places like the Philippines and Indonesia who come to work in the domestic and service sectors of Kuwait.

The ascendance of Sabah bin Jaber in 1762 marked the founding of the current line of monarchs.

Since 1963, the system of government has been a constitutional monarchy. The Amir and his Cabinet has complete executive authority over the immediate day to day affairs of the government.

Legislative authority resides with the National Assembly.

Under the terms of the Constitution, the citizens elect 50 National Assembly members. The first election of the legislature was held on Jan. 23, 1963.

The Constitution itself is deeply rooted in Arabic tradition. The Constitution defines Islamic law as the basis of all legislation. It guarantees all Kuwaitis personal liberty, and there is freedom of the press, association and assembly. There are severe penalties for discrimination on the basis of race, social origin, language or religion.

Thus,like Indonesia, although Kuwait is predominantly Muslim, (about 85 percent of the population), other religious denominations are permitted.

Since its independence, Kuwait has played an important role in the regional and international scene.

It is a member of the Arab League and was accorded United Nations membership in 1963.

In 1981, Kuwait signed the Articles of Association of the Gulf Cooperation Council (GCC), creating a united platform among Gulf states in voicing their aspirations, fostering and furthering cooperation in the face of international threats, and collectively dealing with Gulf problems while retaining their integral Arab character and independence.

Kuwait pursues a foreign policy which is based on clarity, straightforwardness and quiet diplomacy, while strongly upholding the basis of mutual respect, nonintervention in the internal affairs of other states and advocating the use of peaceful means in resolving international problems.

Indonesia-Kuwait

Despite the great distance, there remains many commonalities between the two countries.

Kuwait has also shown that it has not forgotten its Indonesian brothers who are suffering a debilitating economic crisis. Kuwait last year announced some US$50 million in aid to assist Indonesia in its developmental and humanitarian projects.

As part of its National Day celebrations, the Kuwaiti Embassy in Jakarta recently held a gathering for some 5,000 orphans during which food and financial aid was given out to them.

Apart from their mutual sociopolitical principals, the oil sector has been the main propellant in their economic relations in recent years.

Oil has been the staple export and engine of growth for Kuwait since it was first found there in 1938. This industry has since dominated its economic development.

What is unique about Kuwait's crude oil is that it does not need to be pumped to the surface, but flows spontaneously to gathering centers where the gas is separated before the crude oil is stored in tanks on the Al Ahmadi ridge.

Oil from these storage areas gravitates to tanker loading berths, some of the world's most efficient in loading and dispatching crude to foreign markets.

Investment

Kuwait also has three oil refineries which between them have a refining capacity of 640,000 barrels per day. All the refineries are operated by the Kuwait National Petroleum Company, a subsidiary of Kuwait Petroleum Corporation.

One of the most notable investments that Kuwait launched overseas was in Indonesia in 1995 through PT Hemoco Selayar International Oil Refinery.

Hemoco plans to build a massive oil refinery complex - consisting of an oil refinery, petrochemical plant, marine terminal, and an industrial and residential area - in Selayar Island, South Sulawesi.

Selayar is a 100-kilometer-long island currently inhabited by some 100,000 people. The deep water access adjacent to the refinery makes it a strategic location for the import of crude oil which could then be transported to other parts of the country.

Hemoco has designed an environmentally friendly state-of-the- art facility which incorporates the latest technology.

The Hemoco joint venture is 60 percent owned by Hemoco Kuwait General Trading & Contracting Company and 40 percent owned by PT Kilang Minyak Bumi Selayar.

Among the immediate benefits the local community is expected to gain from this massive $4 billion project are, among others, 10,000 and 2,500 employment opportunities during the construction and operation of the complex, respectively.

Hemoco also claims that as a result of the project, there will be an increase in Indonesia's foreign exchange earnings of at least $400 million per year from import substitution and exports.

Material sourced from Kuwait, facts and pictures, published by the Kuwait Ministry of Information, Kuwait - A Nation's Story, Peter Vine and Paula Casey, Immel Publishing, 1992, and Selayar Island, a Centre of Excellence, published by the Hemoco Selayar International Oil Refinery.

Fast Facts Official name: State of Kuwait Form of government: Constitutional monarchy with single legislative body (National Assembly) Capital: Al Kuwayt Size: 17,820 sq km Population: About 2 million Official language: Arabic Other language: English Currency: Kuwaiti dinar Economy: Services 90%, industry 9%, agriculture 1% GNP per capita: US$17,390