The State of Kuwait, a constitutional monarchy located on the Arabian Peninsula at the northwestern corner of the Persian Gulf, has an area of 6,880 sq. mi. (17,818 sq. km.) and a population of 1.97 million. Capital: Kuwait. Petroleum, the basis of the economy, provides 95 percent of the exports. ,The modern history of Kuwait began with the founding of the men who wandered northward from the region of the Qatar Peninsula of eastern Arabia. Fearing that the Turks would take over the sheikhdom, Shaikh Mubarak entered into an agreement with Great Britain, 1899, placing Kuwait under the protection of Britain and empowering Britain to conduct its foreign affairs. Britain terminated the protectorate on June 19, 1961, giving Kuwait its independence (by a simple exchange of notes) but agreeing to furnish military aid on request.,, ,The Kuwait dinar, one of the world?s strongest currencies, is backed 100 percent by gold and foreign exchange holdings.,, ,On August 2, 1990 Iraqi forces invaded and rapidly overran Kuwaiti forces. Annexation by Iraq was declared on August 8. The Kuwaiti government established itself in exile in Saudi Arabia. The United Nations forces attacked on February 24, 1991 and Kuwait City was liberated on February 26. Iraq quickly withdrew remaining forces.,, Rulers:,,, ,British to 1961,, ,Abdullah, 19661-1965,, ,Sabah Ibn Salim Al Sabah, 1965-1977,, ,Jabir Ibn Ahmad Al Sabah, 1977-,, Monetary System:,,, ,1 Dinar = 1000 Fils,,