Kuwait is a sovereign emirate located on the coast of the Persian Gulf in Southwest Asia and the Middle East. Kuwait is bordered by Saudi Arabia to the south and Iraq to the north and west. The name of Kuwait is a diminutive of an Arabic word meaning "fortress built near water." It has a population of 4.1 million and an area of 17,818 km2. Kuwait is a constitutional monarchy with a parliamentary system of government and Kuwait City serves as its political and economic capital.