Kuwait City is the capital and largest city of Kuwait. It is located on the shore of the Persian Gulf and has a population of over 2.3 million people. Kuwait City contains most governmental offices and is the political, cultural and economic center of Kuwait. The city was originally settled in the early 18th century and grew quickly due to its thriving port and trade relations. Kuwait City has a wealthy economy driven largely by oil exports and revenues, though it has done little to diversify beyond oil. The city suffered damage during Iraq's 1990 invasion but has since rebuilt and modernized.