Kuwait is a country located in the Middle East on the northeast Arabian Peninsula. It borders the Persian Gulf, Iraq, and Saudi Arabia. The flat, sandy Arabian Desert covers most of Kuwait. The government system is a constitutional emirate. The chief of state is the Emir, or Sheikh, and the head of government is the Prime Minister. Kuwait has a mixed economic system in which the economy includes a variety of private freedom, combined with centralized economic planning and government regulation. Kuwait is a member of Council of Arab Economic Unity (CAEU).