Complex sentence: Kuwait had arguably one of the best natural harbors in the Persian Gulf; its location allowed it to benefit from the caravan trade to Aleppo and Baghdad, Shatt al-Arab trade, and from smuggling trade into Ottoman territory that high tariffs encouraged.
Split into simpler sentences: Kuwait had arguably one of the best natural harbors in the Persian Gulf. Its location allowed it to benefit from the caravan trade to Aleppo and Baghdad, Shatt al-Arab trade, and from smuggling trade into Ottoman territory that high tariffs encouraged.