Oil was discovered in Kuwait in the 1930s, and proved to have 20% of the world's known oil resources. Since 1946 it has been the world's second-largest oil exporter. The sheik, who receives half of the profits, devotes most of them to the education, welfare, and modernization of his kingdom. In 1966, Sheik Sabah designated a relative, Jaber al-Ahmad al-Sabah, as his successor. By 1968, the sheikdom had established a model welfare state, and it sought to establish dominance among the sheikdoms and emirates of the Persian Gulf.