During the Persian siege of Basra in 1775–79, Iraqi merchants took refuge in Kuwait and were partly instrumental in the expansion of Kuwait's boat-building and trading activities. As a result, Kuwait's maritime commerce boomed, as the Indian trade routes with Baghdad, Aleppo, Smyrna and Constantinople were diverted to Kuwait during this time. The East India Company was diverted to Kuwait in 1792. The East India Company secured the sea routes between Kuwait, India and the east coasts of Africa. After the Persians withdrew from Basra in 1779, Kuwait continued to attract trade away from Basra.
Kuwait was the center of boat building in the Persian Gulf region. During the late eighteenth and nineteenth centuries, vessels made in Kuwait carried the bulk of trade between the ports of India, East Africa and the Red Sea. Kuwaiti ships were renowned throughout the Indian Ocean. Regional geopolitical turbulence helped foster economic prosperity in Kuwait in the second half of the 18th century. Perhaps the biggest catalyst for much of Kuwait becoming prosperous was due to Basra's instability in the late 18th century.[29] In the late 18th century, Kuwait partly functioned as a haven for Basra's merchants, who were fleeing Ottoman government persecution.Kuwaitis developed a reputation as the best sailors in the Persian Gulf.
The Sheikhdom of Kuwait became a British protectorate in 1899 (until 1961) after the Anglo-Kuwaiti agreement of 1899 was signed between Sheikh Mubarak Al Sabah and the British government in India due to severe threats to Kuwait's independence from the Ottoman Empire.
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