The missile landed at around 0145 (2245 GMT) 10 metres (33 feet) out to sea, according to an interior ministry official, but the fallout extended 300 metres (990 feet) into one of the emirate's largest and most popular shopping malls, Souk Sharq.

"An Iraqi missile was launched against Kuwait ... There were no casualties," Brigadier Ahmad al-Rjaib told state television.

He called on "citizens to be vigilant and aware of the Iraqi regime, which would not hestitate to harm Kuwait".

"The ground shook like an earthquake. I immediately called 777 for emergency services and a moment later I saw huge flames," eyewitness Faisal al-Sallal told AFP.

Sallal, who was jogging along the waterfront when the missile hit, described it as "green, oval-shaped, with fins". Some of the fractured remains of the missile carried writing in both Arabic and English, he said.

Pieces of missile debris could be seen everywhere outside the shopping centre, surrounded by the stench of burning metal.

Glass doors were shattered and there was extensive damage along a 30-metre (100-feet) sidewalk outside the back of the mall.

The waterfront mall, which closes at 10 pm (1900 GMT), boasts a huge marina, and more than 100 shops and restaurants.

It is opposite Kuwait's main fish market and lies just a few hundred metres from the foreign ministry and Seif Palace, the seat of Emir Sheikh Jaber al-Ahmad al-Sabah.

Also close by are the British embassy and the central business district, including the Central Bank and stock exchange.

Air raid sirens, which are supposed to give warning of incoming missiles, did not go off.

"It could have been a low-flying missile which is why it was not picked up by the air defence system. It could have been launched from the sea," explained another interior ministry official.

Amid chaotic scenes where Kuwait police struggled to hold back hundreds of residents and press, none of whom were wearing gasmasks, Czech nuclear, biological and chemical weapons experts arrived at the scene one hour after the missile struck.

A group of young Kuwaiti men who had gathered at Souk Sharq started an impromptu singing session, warning: "Saddam, your days are numbered!"

"We should retaliate. We shouldn't stay neutral in this war. We must retaliate using all means," said Saud al-Hamdan, a 25-year-old Kuwaiti.

Since the start of the week-old war on Iraq, some 15 Iraqi missiles have been fired at Kuwait, from where tens of thousands of US and British troops have moved into Iraq.

Several missiles have been intercepted by Patriot anti-missile missiles, while others have landed harmlessly in the sea.

On Friday, the US military said F/A-18 fighter jets targeted three Al Samoud missile launchers in an air strike near the southern port city of Basra.

"The strike was carried out with precision-guided ordnance to continue to degrade Iraq's ability to strike coalition forces, the Iraqi people, or neighbouring countries," it said.

WAR.WIRE