The Discovery Of Oil
The first exploration well was drilled in Bahrah when a geophysical exploration was carried out. Oil was first discovered in Burgan by Kuwait Oil Company in 1938. Eight more wells were drilled at Burgan during 1938-1942. Kuwait proved to have 20% of the world's known oil resources. Since 1946 it has been the world's second-largest oil exporter. Because of the Second World War exports did not start until 1946. On June 30, 1946 the first crude oil shipment was exported. As oil exports increased, Ahmadi - named after HH the Amir Sheikh Ahmad Al-Jaber Al-Sabah, was created near the oil fields as a township for oil company personnel.

Oil wealth transformed the society. Large-scale construction and economic development became possible, and since the government controlled oil revenues, the power of the Sabah family grew as well. Oil wealth also brought more contact with the outside world, and many younger Kuwaitis favored the pan-Arab movement, which sought greater ties among Arab countries.

The oil embargo in 1973 resulted in substantially improved oil prices. In 1975 the government took 100 per cent control of the State’s oil resources. The resulting massive inflows of funds were spent on developing the country’s infrastructure and in improving living standards. In 1975, Kuwait Oil Tankers Company was established.

Modern infrastructure rose from the arid desert as roads, ports, factories, power generating stations, and desalination plants came into being. The population increased as thousands of foreign technical advisors and workers arrived to service the huge development schemes. Many Kuwaitis, members of a privileged minority, found themselves in new roles as importers, contractors, landlords and government officials.

The government’s role in the economy and administration naturally increased under the impact of the new wealth and development. Modern business laws were promulgated. A new administrative order was devised as the government expanded. Though Shura (consultation) had always been a part of political life in Kuwait since the reign of the first Al-Sabah ruler, the government began developing a new style of constitutional rule.

Though Kuwait had been an independent political entity for more than two centuries, it gained international recognition as a sovereign state in June 1961. A few weeks later Kuwait joined the Arab League. In 1963 the country became a member of the United Nations. The State of Kuwait’s Constitution was ratified on November 11, 1962. Its National Assembly was convened under the Constitution on January 29, 1963.

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