The crown al-Sabah family has ruled Kuwait since 1718, witnessing the transition of their merchant-based kingdom into an economically powerful sovereign state. The geographically minute Gulf state is home to 8.5% of the world's proven oil reserves making it the state with the 5th largest reserves on earth . I am writing to examine whether this oil is the basis for stability in Kuwait. With the revenues produced from oil, Kuwait now has an excellent welfare system, the 19th highest GDP per capita in the world (US$40,700) and a de jure democracy. Kuwait follows the Rentier State Theory (RST) to a great extent, aside from several irregularities due to the demographic. .
A rentier state is one that derives all or the majority of its revenue from the rent of an extractable raw material (usually hydrocarbons) to external buyers. Most of the Gulf States have become synonymous with rentierism. At the end of the 2011 fiscal year Kuwait reported oil revenues of US$44.43 billion, which accounted for 93% of total government revenues. This is no anomaly; since independence from Britain in 1961, Kuwait's oil revenues have averaged over 84% of the state's total revenues with the exception of 1991/1992 (dropping to 57%) due to the Iraqi invasion. These revenues from oil thus lead to a patron relationship between state and society called rentierism. RST is the theory that rentierism leads to authoritarianism and thus a lack of democracy. .
Since the majority of the population does not hold Kuwaiti citizenship (66.8%)4, there is a complex socio-political hierarchy within the state, whereby the minority (Kuwaiti citizens) hold virtually all political power - this power hierarchy is never challenged. Although the National Assembly (parliament) includes both Sunni (the majority religion), Shi'as and al-Bidun (literally "the without ", those who have no nationality legally but claim Kuwaiti ancestry) all of the key political positions such as Prime Minister, Minister of Defence, Minister for Information, Minster of Foreign Affairs are all taken by members of the al-Sabah family, who are Sunni.