Crossword Genius

State with a well oiled economy (6)

Ross

I believe the answer is:

kuwait

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'state' is the definition.
(Kuwait is an example)

I don't understand how the remainder of the clue works.

Can you help me to learn more?

(Other definitions for kuwait that I've seen before include "monarchy" , "Arab kingdom, major source of oil" , "Oil-rich country" , "Gulf state" , "in Middle East" .)

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