Kuwait / History / The Discovery of Oil Era

The first oil concession was granted in 1936 by Sheikh Ahmad (1921-1950), a shrewd negotiator, who obtained terms which were more generous than those obtained by other less independent states in the region.

Oil was first discovered in Burgan in 1938. Because of the Second World War, exports did not start until 1946.

As oil exports increased Ahmadi, named after the Emir, was created near the oil fields as a township for oil company personnel.

In the 1950's & 60's, Kuwait underwent its transition from a small Emirate to an internationally influential modern state.

A modern infrastructure rose from the arid desert as roads, ports, factories, power generating stations, and desalination plants came into being.

The boom continued as new mosques, clinics, hospitals, schools, markets, supermarkets, houses and villas were built.

The population increased as thousands of foreign technicians, 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. 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 administration 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 the government began developing a new style of constitutional rule.