Economic Conditions
Saudi Arabia’s economy is heavily oil-based. The oil industry is responsible for
roughly 75% of budget revenues, 40% of the Gross National Product, and 90% of
export earnings. It possesses 24% of the worlds proven petroleum reserves. The
government has a strong central control on all major economic activities.
Political Conditions
Saudi Arabia is a monarchy. The holy Quran is the national constitution of the
country, which is governed by basic Islamic law (Shari'a.) The formation of political
parties is forbidden and thus, no elections take place. Although the King’s power is
theoretically limited to the Shari'a and Saudi tradition, he must attain approval
amongst other members of the Saudi royal family and religious leaders.
Social Conditions
The Saudi society has undergone extreme modernization within the last few decades.
The country’s infrastructure is highly developed and technologically sophisticated.
The massive revenues from the oil industry have brought great prosperity to the
country, but Saudis now face the problem of preserving their culture and religion
while maintaining the benefits of a wealthy society. While certain parts of the country
resemble the highly modernized nations of the first world, certain parts remain third
world like. Close to one third of the population lived in rural areas- some living as
nomadic and semi nomadic herdsmen, and some as oasis agricultural workers
Peace Plans
Since the late 1950s, three main themes have linked us to Saudi foreign policy:
regional security, Arab nationalism, and Islam. Regional security issues involve
middle-eastern regime stability, and safety of petroleum reports. Historically, Saudi
Arabia has had good relationships with the United States, but relationships became
complicated in the 1960s and 1970s when Saudis believed American support for
Israel would be detrimental to its national interests. Up until this day, Saudi Arabia
remains the primary acceptor of American weapons, equipment, money, modern
military facilities, and training personnel. Saudi relations with Iraq and the republic
government of Yemen have been the most problematic. Saudi relations with small
Arab oil producing countries have been close. In 1992 the Saudi kingdom was allied
with its fellow monarchies and shaykhdoms of Bahrain, Kuwait, Oman, Qatar, and the
United Arab Emirates (UAE) in the Gulf Cooperation Council (GCC), a regional
collective security and economic organization which Saudi Arabia has lead.
Role Profile
Prince Sultan bin Abdul Aziz:
- One of the most powerful princes in Saudi Arabia.
- He has been the Minister of Defense and Aviation since 1962, and in 1982 was
named by his full brother King Fahd as Second Deputy Prime Minister, the position
Fahd and Crown Prince Abdullah each held immediately before becoming Crown
Prince.
- There is no formal line of succession in the Kingdom after the Crown Prince, he is
generally considered likely to be the next Crown Prince, and thus second in line to be
king.
- On 15th August 2002, he was one of three Saudi princes sued for allegedly helping
to finance the terrorist attacks of 11th September 2001, the other two being Prince
Turki bin Faisal and Prince Mohammed bin Faisal.
- His son Prince Bandar bin Sultan is Saudi Arabia's ambassador to the United States,
and his son Prince Khalid bin Sultan was a key Saudi general in the 1991 Gulf War.
Saudi Crown Prince Abdullah:
- Crown Prince Abdullah has effectively ruled Saudi Arabia since King Fahd, his
elder half-brother, suffered a stroke in 1995.
- Abdullah has won praise from Saudi liberals for advocating reform. Analysts say
that while the crown prince may not be about to radically liberalise Saudi society, he
enjoys widespread credibility among his people.
- He has allowed mild criticism of the government in the press, and hinted that more
women should be allowed to work.
- Throughout his life, Prince Abdullah has retained a love of the desert, along with a
love of horsemanship. He is a breeder of pure Arabian horses, and founder of the
Riyadh-based equestrian club. A third life-long passion is reading, to which he
attributes great importance.
Timeline of Important moments in Saudi Arabian History.
1st millenium BC: Minean kingdom in southwestern Arabia. Mineans ecohnomy was
based upon nomadic lifestyles and trade of incense.
1st century BC: Nabatean kingdom established to the north of the Minean. The
eastern parts of Arabia was dominated by Dilmun, covering parts of the mainland and
the island of Bahrain.
5th century AD: Mecca becomes the leading city of the region.
570: Birth of Prophet Muhammd, the later Prophet of Islam.
630: Mecca is conqured by Prophet Muhammads men, and strong expansion is started
towards first the Arab peninsular, later beyond in northern direction.
1269: The region is subverted by the Mamelukes of Egypt.
15th century: Saud dynasty founded in the region around today's Riyadh.
1517: Control passes over to the Ottomans, when they conquer Egypt, but they hold
only parts of the region under direct control.
Mid 18th century: Time of Muhammad Ibnu Bdi l-Wahhab, a relgious leader
establishing a sect that was supported by the Saudis. This movement soon established
a national state in Najd, the centre of Arabia.
1802: Mecca is conquered by the Wahhabis.
1812: Wahhabis are driven out of Mecca by the local population.
1818: Wahhbis and Saudis found their capital in Riyadh. Slow reconquering starts
from here.
1865: Civil war, the dynasty falls apart, and Arabia became divided between different
clans and the Ottomans.
1902: Abdul Aziz Ibn Saud retakes Riyadh.
1906: The Saudis have once again control over Najd.
1913: Conquering of Hasa, the region east of Najd.
1921: Conquering of Jabal Shammar, the region northwest of Najd.
1923: Great Britian stops transferring money to both Abdul Aziz and the Hashimite
king of Hijaz, the Sharif. This tilts the power balance in favour of Abdul Aziz.
1924: The Sharif declares himself Caliph.
October 13: Mecca is conquered bloodlessly, and Abdul Aziz declares himself
guardian of the Holy Places.
1925: Madina is conquered.
1926: Asir to the south is conquered. Abdul Aziz declares himself king of Hijaz.
Abdul Aziz orders the Hijazi tribes to desist from exploiting pilgrims.
1932: The conquered territories is unified, and named Saudi Arabia. Abdul Aziz takes
the name king of Saudi Arabia. The years from 1924 saw that Abdul Aziz broke with
the Wahhabis, and allowed the introduction of modern inventions, things that the
Wahhabis looked upon as un-Islamic.
1938: Oil is discovered.
1939: Oil exploitation starts. Abdul Aziz starts a large-scale modernising programme.
1940-45: Saudi Arabia is on the allied side during World War II, giving room for an
US air base in Dhahran.
1951: A new agreement with Aramco (Arabian American Oil Company), gives Saudi
Arabia 50% of all earnings from the oil, as Aramco starts paying tax to Saudi Arabia
instead of to the US goverment.
1953 November 9: King Abdul Aziz dies. He is succeeded by his son Saud.
1956: Loan of US$10 million is given to Egypt after their assets are frozen in
connection with the Suez situation. After the British, French and Israeli attack on
Egypt in October and November, Saudi Arabia reduced its economical and political
relationsship to both countries.
1957: In conjunction with a visit by King Saud to USA, relations with USA is
enhanced, much with the trade of US arms. Later this year Saudi Arabia declared that
the Gulf of Aqaba was Saudi territory.
1958 Change in the constitutional construction, where the kings absolute power was
reduced, and legislative and executive powers was transferred to the prime minister. A
couple of months later a cabinet system was introduced.
1960: Saudi Arabia participated in the construction of OPEC in Baghdad, in order to
help sustain international oil prices.
1962 October: King Saud is forced to transfer effective power to his brother Feisal.
The background for this is Saud's total lack of control over economy. Feisal
introduces a system of official institutions handling economical functions.
Relations with Egypt are severed after Egypt and Saudi Arabia supported each their
parties in the Yemeni revolution. Saudi Arabia supported the imam of Yemen. The
conflict went as far as to Egypt bombing Saudi towns.
1963: Saudi Arabia mobilised its army after the deteriorated relations with Egypt.
1964: Prince Feisal replaces Saud as king. The political system of Feisal is the system
that has been used up to our times.
1967: With the foreplay to the Six day war of 1967 Saudi Arabia expresses support
for Egypt, and even sends 20,000 soldiers to help in the war. When Egypt later that
year withdrew from Yemen, Saudi Arabia gave extensive help to Egypt.
1970: Saudi Arabia recognises the government of Yemen, that now is made up of the
party that was supported by Egypt.
1973: Saudi Arabia plays a leading role in a oil boycott against those Western
countries that supported Israel. This resulted in oil prices four times higher than
earlier.
1974: Saudi Arabia takes over more of the control over Aramco, and revenues
increases greatly.
1975: King Feisal is murdered. Khalid becomes new king, but his weak health makes
his half brother Fahd the the true exercising power.
1979: With the signing of the Camp David agreement, Saudi Arabia cuts off its
financial aid to Egypt.
November 20: On this day, the first day in the Muslim calendar's year 1400, a group
of Sunni Muslims barricaded themselves inside the Holy Mosque of Mecca. They
claimed that the promised Mahdi was among them. They held out in 15 days (until
December 4) and as much as 200 seems to have been killed. The true identity of the
rebels is still not fully known.
1980: Saudi Arabia takes full control over Aramco.
1982: King Khalid dies. He is succeeded by King Fahd.
1987 July 31: 400 Iranian pilgrims are killed after clashes with Saudi security forces
in Mecca.
1990 July: 1,400 pilgrims dies after a bridge and tunnel accident.
August 2: The Iraqi invasion of Kuwait was dramatic to Saudi politics and security.
Saudi Arabia allowed hundreds of thousands of foreign troops (mainly US) to be
stationed on their own soil.
1992: Constitutional changes, where a consultative council, shura, is established,
along with a bill of rights, and the rules of succession for the king.
— Relations with Jordan deteriorates, as Jordan questions Saudi supremacy as
protector of the Holy places.
(Saudi Arabia:History “http://www.the-saudi.net/saudi-arabia/saudi_history.htm”)
In Depth Report
The discovery of oil in 1938 is the most significant incident that has shaped Saudi
Arabia during the 20th century. The kingdom has prospered economically, and
untapped oil revenues have made Saudi Arabia an extremely important country on the
international level. The discovery pulled Saudi’s out of isolation and has given the
Kingdom great legitimacy- allowing it to have good relationships with Western
countries that depend on the oil. In addition, it has introduced new ways of providing
services, through as series of massive modernization projects- new roads, ports,
housing, power generators, ect.
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