Kuwait is a constitutional monarchy (emirate) governed by the Al-Sabah family. Its economy is heavily dependent on oil wealth, which accounts for the majority of its GDP and export earnings. The country combines significant state involvement in key sectors with free-market principles, maintaining one of the world's oldest and largest sovereign wealth funds (Kuwait Investment Authority) to manage its oil revenues. Key economic sectors include oil and gas production, financial services, and investments through its sovereign fund. While Kuwait provides comprehensive welfare benefits to citizens including free healthcare and education, it faces challenges with economic diversification, large public sector employment, and dependence on oil revenues. The country maintains its own currency (Kuwaiti Dinar), which is one of the world's highest-valued currencies.