Saudi Arabia

SAUDI ARABIA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS SAUDIS
DEPENDENCIES
BIBLIOGRAPHY

Kingdom of Sa'udi Arabia

Al-Mamlakah al-'Arabiyah as-Sa'udiyah

CAPITAL: Riyadh (Ar-Riyad)

FLAG: The national flag bears in white on a green field the inscription, in Arabic, "There is no god but Allah, and Mohammad is the messenger of Allah." There is a long white sword beneath the inscription; the sword handle is toward the fly.

ANTHEM: The National Anthem is a short instrumental selection.

MONETARY UNIT: The Saudi riyal (sr) is divided into 20 qursh (piasters), in turn divided into 5 halalah. There are coins of 1, 5, 10, 25, 50, and 100 halalah and notes of 1, 5, 10, 50, 100, and 500 riyals. sr1 = $0.26667 (or $1 = sr3.75) as of 2005.

WEIGHTS AND MEASURES: The metric system has been officially adopted.

HOLIDAYS: Muslim religious holidays include 1st of Muharram (Muslim New Year), 'Id al-Fitr, and 'Id al'Adha'.

TIME: 3 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Saudi Arabia constitutes about four-fifths of the Arabian Peninsula in Southwest Asia. Although Saudi Arabia is known to be the third-largest country in Asia, after China and India, its precise area is difficult to specify because several of its borders are incompletely demarcated. According to the United Nations (UN), the nation has an area of 1,960,582 sq km (756,985 sq mi); it extends 2,295 km (1,426 mi) ese–wnw and 1,423 km (884 mi) nne–ssw. Comparatively, the area occupied by Saudi Arabia is slightly less than one-fourth the size of the United States. Saudi Arabia is bounded on the n by Jordan and Iraq; on the ne by Kuwait; on the e by the Persian Gulf, Qatar, and the United Arab Emirates (UAE); on the se by Oman; on the s and sw by Yemen; and on the w by the Red Sea and the Gulf of Aqaba, with a total estimated land boundary length of 4,431 km (2,753 mi) and a coastline of 2,640 km (1,640 mi).

The Farasãn Islands, belonging to Saudi Arabia, include about 120 islands in the Red Sea, the largest of which is Farasãn al Kabir, with an area of about 395 sq km (152 sq mi).

An agreement was reached in 1965 whereby the neutral zone separating Saudi Arabia from Kuwait was divided administratively between the two countries; however, Kuwait and Saudi Arabia continue to debate the maritime boundary with Iran. A dispute between Saudi Arabia and the newly formed UAE over control of the Buraymi oasis was settled in 1974, when they reached an accord fixing their common border; however, the details of this treaty had not been made public by late 2005.

Saudi Arabia's capital city, Riyadh, is located in the east-central part of the country.

TOPOGRAPHY

A narrow plain, the Tihamat ash-Sham, parallels the Red Sea coast, as do, farther north, the Hijaz Mountains (with elevations of 910–2,740 m/3,000–9,000 ft), which rise sharply from the sea. The highest mountains (over 2,740 m/9,000 ft) are in 'Asir in the south. 'Asir is a region extending about 370 km (230 mi) along the Red Sea and perhaps 290–320 km (180–200 mi) inland. East of the Hijaz, the slope is more gentle, and the mountains give way to the central uplands (Najd), a large plateau ranging in elevation from about 1,520 m (5,000 ft) in the west to about 610 m (2,000 ft) in the east. The Dahna, a desert with an average width of 56 km (35 mi) and an average altitude of 460 m (1,500 ft), separates Najd from the low plateau (Hasa) to the east (average width, 160 km/100 mi; average altitude, 240 m/800 ft). This, in turn, gives way to the low-lying Gulf region.

At least one-third of the total area is sandy desert. The largest of the deserts is the famed Ar-Rub' al-Khali in the south, with an area of roughly 647,500 sq km (250,000 sq mi). An-Nafud, its northern counterpart, has an area of about 57,000 sq km (22,000 sq mi). There are no lakes, and except for artesian wells in the eastern oases, there is no perennially flowing water.

CLIMATE

The climate is generally very dry and very hot; dust storms and sandstorms are frequent. Day and night temperatures vary greatly. From May to September, the hottest period, daytime temperatures reach 54°c (129°f) in the interior and are among the highest recorded anywhere in the world. Temperatures are slightly lower along the coasts, but humidity reaches 90%, especially in the east, which is noted for heavy fogs. From October through April, the climate is more moderate, with evening temperatures between 16° and 21°c (61° and 70°f). Average annual rainfall is 9 cm (3.5 in), with most rain falling from November to May. Between 25 and 50 cm (10 and 20 in) of rain falls in the mountainous 'Asir area, where there is a summer monsoon. In late spring and early summer, a strong northwesterly wind known as the shamal produces sometimes severe sand and dust storms.

FLORA AND FAUNA

Vegetation is sparse, owing to aridity and soil salinity. The date palm, mangrove, tamarisk, and acacia are prevalent. Wild mammals include the oryx, jerboa, fox, lynx, wildcat, monkey, panther, and jackal. The favorite game bird is the bustard. The camel and Arab stallion are renowned, as is the white donkey of Al-Ahsa. Fish abound in the coastal waters and insects, scorpions, lizards, and snakes are numerous. Some beaches of the Farasãn Islands are nesting grounds for turtles. An annual gathering of harid parrotfish takes place on these islands, and the waters surrounding them are home to several types of dolphins, whales, and dugong (an aquatic mammal related to the manatee). As of 2002, there were at least 77 species of mammals, 125 species of birds, and over 2,000 species of plants throughout the country.

ENVIRONMENT

The Saudi government has traditionally not given priority to environmental protection, but in recent years it has become concerned about the continuing encroachment of sand dunes on agricultural land, the preservation and development of water resources, and pollution and sanitation problems. Legislation enacted in May 1978 forbade the felling of trees and regulated the protection of forestland. In 2000, less than 1% of the total land area was forested.

Saudi Arabia's natural environment was threatened by the Persian Gulf War. The dumping of up to six million barrels of oil in the surrounding waters and the destruction of Kuwait's oil wells by fire polluted the nation's air and water. Saudi Arabia has about 2 cu km of renewable water resources, with 90% of annual withdrawals used for farming and 1% used for industrial purposes. Only about 64% of the nation's rural population has access to safe drinking water. At current rates of consumption, it has been estimated that the nation's water supply may be exhausted in 10–20 years. Saudi Arabia's cities produce an average of 4.8 million tons of solid waste per year.

The Directorate General for Environmental Protection is responsible for environmental protection measures and preservation of natural resources. In the late 1970s, the 'Asir Kingdom Park, in the southwest, was created to preserve the landforms, flora, and fauna of the 'Asir region, which forms part of the Great Rift Valley. Drakensberg Park became a UNESCO World Heritage Site in 2000.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 9 types of mammals, 17 species of birds, 2 types of reptiles, 9 species of fish, 1 species of invertebrate, and 3 species of plants. Threatened species in Saudi Arabia include the Asiatic cheetah (possibly extinct), South Arabian leopard, northern bald ibis, and two species of turtle (green sea and hawksbill). The Arabian gazelle, Queen of Sheba's gazelle, Saudi gazelle, and the Syrian wild ass have become extinct.

POPULATION

The population of Saudi Arabia in 2005 was estimated by the United Nations (UN) at 24,573,000, which placed it at number 46 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 37% of the population under 15 years of age. There were 117 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 2.7%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 37,160,000. The overall population density was 12 per sq km (30 per sq mi), but much of the population is concentrated on the coasts or internal oases; desert regions are largely uninhabited.

The UN estimated that 86% of the population lived in urban areas in 2005 and that urban areas were growing at an annual rate of 2.95%. The capital city, Riyadh (Ar-Riyad), had a population of 5,126,000 in that year. Estimates of the population in other major metropolitan areas were as follows: Jeddah, the principal port, 3,807,000; and Mecca (Makkah), containing Islam's holiest shrine, 1,529,000. Other major cities include Medina (Al-Madinah), the second-holiest city of Islam, 1,044,000; Ad Dammām, 920,000; Aţ Tā'if, 416,121; and Al Hufūf, 225,847.

MIGRATION

Emigration is limited. Immigration of professionals, technicians, and others from the surrounding Arab states and growing numbers from outside the region have been spurred by the development of the oil industry and by the lack of adequately trained and educated Saudi personnel. Palestinian Arabs, displaced by the establishment of the state of Israel, are the chief immigrant group. In the early 1990s, there were significant numbers of expatriate workers from the United States, European countries, Turkey, Jordan, Syria, Jordan, Kuwait, Yemen, the Republic of Korea (ROK), Pakistan, India, Sri Lanka, and the Philippines. In 1990, when Iraq invaded Kuwait, Saudi Arabia reacted by expelling workers from Jordan, Yemen, and Palestine, for their countries' support of Iraq. The foreign population was 4,624,459 in 1992 (27% of the total population). After the Gulf War, 93,000 Iraqis were granted temporary asylum. Since then, 60,000 Iraqis have been returned under the prisoner of war exchange. By April 1997, 20,800 had resettled in 33 different countries, 3,010 had voluntarily repatriated, and 9,000 were still in camps in Saudi Arabia. The total number of noncitizens living in the country in 2000 was 5,255,000. In 2004, Human Rights Watch, concerned with the treatment of foreign workers, estimated that there were 1–1.5 million people each from Bangladesh, India, and Pakistan; another 900,000 each from Egypt, Sudan, and the Philippines; 500,000 workers from Indonesia; and another 350,000 from Sri Lanka. In 2005, the labor force was 6.76 million, with estimates that more than 35% of the population in the 15–64 age group is nonnational.

By the end of 2004, there were 240,722 refugees and asylum seekers in Saudi Arabia. With 170 asylum seekers that year, the primary origin of this groundswell of refugees was Palestine, a trend following the beginning of the Iraq War. In 2005, the net migration rate was an estimated -3.5 migrants per 1,000 population, down from a net migration rate in 2000 of 4.3 migrants per 1,000 population.

ETHNIC GROUPS

At least 90% of Saudis have a common Arabian ancestry, making the population fairly homogeneous in ethnicity, religion, and language. Divisions are based mainly on tribal affiliation or descent; the primary distinction is between groups with a tradition of being sedentary agriculturalists or traders, and the Bedouins, who have a tradition of nomadic pastoralism. The two groups traditionally have been antagonistic. There has been some loosening of tribal ties, however, caused by rapid economic development. Afro-Asians account for the remaining 10% of the population. Admixtures of Turks, Iranians, Indonesians, Pakistanis, Indians, various African groups, and other non-Arab Muslim peoples appear in the Hijaz, mostly descendants of pilgrims to Mecca. The foreign population stands between six and seven million, including Bangladeshis, Pakistanis, Filipinos, Egyptians, Palestinians, Lebanese, Sri Lankans, Eritreans, and Americans.

LANGUAGES

Arabic, the native language of the indigenous population, is a Semitic language related to Hebrew and Aramaic. Local variations in pronunciation do not prevent oral communication between people from opposite sections of the Arabian Peninsula. The language is written in a cursive script from right to left. The 28 letters of the alphabet have initial, medial, and terminal forms; short vowels are seldom indicated. Most businesspeople and merchants in oil-producing areas and commercial centers understand English. Government correspondence must be written in Arabic.

RELIGIONS

Islam is the state religion and all citizens must be Muslims. About 85% of the people of Saudi Arabia are Sunni Muslims; the dominant form is Wahhabism, a fundamentalist Muslim reform movement first preached by the 18th-century religious leader Muhammad bin 'Abd al-Wahhab. Most other Saudis are Shia Muslims. The holy city of Mecca is the center of Islam and the site of the sacred Ka'bah sanctuary, toward which all Muslims face at prayer. A pilgrimage to Mecca is one of the five basic obligations of Islam and is incumbent upon every Muslim who is physically and financially able to perform it.

There are several thousand foreign Christian employees—Arab, US, and European. Jews have not been allowed to enter the country since the establishment of the state of Israel in 1948, except under special circumstances.

There is no religious freedom within the country. The government claims that the Holy Koran (Quran) and the Sunna (tradition) of the Prophet are the country's constitution. As such, the government strictly controls all religious activities. The public worship of non-Muslim faiths is prohibited. While non-Muslim foreigners are theoretically permitted to worship privately, the guidelines that distinguish between public and private worship are ambiguous, leading to severe restrictions on non-Muslim worship. Proselytizing of non-Muslim religions is illegal and conversion of Muslims to other faiths is a capital offense.

TRANSPORTATION

Until recent decades, the camel was the chief means of transportation in Saudi Arabia, but enormous strides have been made since the early 1970s. By 2002, there were 146,524 km (91,050 mi) of highway, of which 44,104 km (27,406 mi) were paved. Modern roads link Jeddah, Mecca, Medina, Aţ Tā'if, and Riyadh. A new highway connects Saudi Arabia with Jordan, and a causeway completed in 1986 offers a direct connection with Bahrain. In 2003, there were 2,889,384 passenger cars and 1,720,910 commercial vehicles registered for use. Most within-country freight is hauled by truck. The Saudi Government Railroad, which operates between Ad Dammām and Riyadh over a length of 575 km (357 mi), was built by the Arabian American Oil Co. (ARAMCO) during the 1950s. As of 2004, railroad lines totaled 1,392 km (865 mi) of standard-gauge track.

In 2004, there were an estimated 201 airports. As of 2005, a total of 73 had paved runways, and there were also six heliports. Major airports include Dhahran International at Dhahran, King Abdul Aziz at Jeddah, and King Khaled International at Riyadh. The government-owned Saudi Arabian Airlines (Saudia) operates regular domestic and foreign flights to major cities. Because of the large distances that separate the main cities, air travel is preferred within the kingdom. In 2003, about 13.882 million passengers were carried on scheduled domestic and international flights.

Jeddah, on the Red Sea, is the chief port of entry for Muslim pilgrims going to Mecca. Saudi Arabia has the largest seaport network in the Near East, with eight major ports with 183 piers and three smaller ports. Ports include Ad Dammām, Yanbu' al-Bahr, Jizan, Duba, Jeddah, Jizan, Rabigh, Ra's al Khafji, Mishab, Ras Tanura, Madinat Yanbu' al Sinaiyah, and Jubail (Al-Jubayl). In 2005, there were 64 ships of 1,000 GRT or more, totaling 1,306,706 GRT in the merchant fleet. The traditional dhow is still used for coastal trade.

HISTORY

For several thousand years, Arabia has been inhabited by nomadic Semitic tribes. Towns were established at various oases and along caravan routes. During the 7th century ad, followers of Muhammad expanded beyond the Mecca-Medina region and within a century had conquered most of the Mediterranean region between Persia in the east and Spain in the west. Although Arabs were dominant in many parts of the Muslim world and there was a great medieval flowering of Arab civilization, the peninsula itself (except for the holy cities of Mecca and Medina) declined in importance and remained virtually isolated for almost a thousand years. Throughout this period, Arabia was barely more than a province of successive Islamic caliphates that established their capitals in Damascus, Baghdād, Cairo, and Constantinople (now Istanbul).

The foundations of the Kingdom of Saudi Arabia were laid in the 18th century by the fusion of the military power of the Sa'ud family and Wahhabism, an Islamic puritan doctrine preached by Muhammad bin 'Abd al-Wahhab. Muhammad ibn-Sa'ud (r.1744–65) and his son, 'Abd al-'Aziz (r.1765–1803), gave the religious reformer refuge at Ad-Dar'iyah, in central Arabia, and together they embarked on a program of religious reform and territorial expansion. By 1801, Najd and Al-Ahsa were occupied. 'Abd al-'Aziz's son and successor, Sa'ud (r.1803–14), brought the Hijaz under Saudi control and took the holy city of Mecca. The Ottoman Turks called on their governor of Egypt, Muhammad 'Ali, to put down the Saudis. A long struggle (1811–18) finally resulted in Saudi defeat. During that time, Sa'ud died, and his son, 'Abdallah (r.1814–18), was captured and beheaded.

When international conditions forced Muhammad 'Ali to withdraw his occupation forces in 1840, the Saudis embarked upon a policy of reconquest. Under Faisal (Faysal, r.1843–67), Wahhabi control was reasserted over Najd, Al-Ahsa, and Oman, with Riyadh as the new capital. (Hijaz remained under the control of the sharifs of Mecca until 1925.) After Faisal's death, conflict between his sons led to a decline in the family's fortunes. Taking advantage of these quarrels, the Ibn-Rashids, a former Saudi vassal family, gained control of Najd and conquered Riyadh. The Saudi family fled to Kuwait in 1891.

In January 1902, 'Abd al-'Aziz, a grandson of Faisal, who was to gain fame under the name Ibn-Sa'ud, succeeded in driving the Ibn-Rashid garrison out of Riyadh. At a decisive battle in 1906, the Rashidi power was broken. In 1913, the Saudis again brought Al-Ahsa under their control, and in December 1915, Ibn-Sa'ud signed a treaty with the British that placed Saudi foreign relations under British control in return for a sizable subsidy.

Warfare broke out again in Arabia in 1919, when Hussein ibn'Ali (Husayn ibn-'Ali), the sharif of Mecca, who had become an independent king, attacked the Saudis. Hussein was defeated, and Ibn-Sa'ud annexed 'Asir. In 1921, he finally rid Arabia of the Rashids, and by 1923, he had consolidated his kingdom by occupying the districts west and north of Ha'il. Hussein of Mecca provoked another conflict with Ibn-Sa'ud in March 1924 by proclaiming himself caliph. War broke out, and the Saudis captured Aţ Tā'if, Mecca, and Medina (December 1925). 'Ali ibn-Hussein ('Ali ibn-Husayn), who had replaced his father as king of Hijaz, then abdicated, and in November 1925, Ibn-Sa'ud entered Jeddah. This increase in Ibn-Sa'ud's territory was acknowledged by the British in a treaty of 20 May 1927 that annulled the 1915 agreement and recognized his independence. On 22 September 1932, the various parts of the realm were amalgamated into the Kingdom of Saudi Arabia, with much the same boundaries that exist today.

With the discovery of oil in the 1930s, the history of Saudi Arabia was irrevocably altered. Reserves have proved vast—about one-fourth of the world's total—and production, begun in earnest after World War II, has provided a huge income, much of it expended on infrastructure and social services. Saudi Arabia's petroleum derived wealth has considerably enhanced the country's influence in world economic and political forums. Following the 1967 Arab-Israeli War, the Saudi government undertook a vast aid program in support of Egypt, Syria, and Jordan. Saudi Arabia joined the 1973 Arab boycott against the United States and the Netherlands and, as a key member of Organization of the Petroleum Exporting Countries (OPEC), lent its support to the huge rise in oil prices during the 1970s. This move had stunning consequences for the world economy and also caused a dramatic upsurge in Saudi Arabia's wealth and power. Since the 1980s, the government has regulated its petroleum production to stabilize the international oil market and has used its influence as the most powerful moderate member of OPEC to restrain the more radical members.

Political life in Saudi Arabia remained basically stable in the last third of the 20th century, despite several abrupt changes of leadership. In November 1964, Crown Prince Faisal (Faysal ibn 'Abd al'Aziz as-Sa'ud), a son of Ibn-Sa'ud, became king and prime minister following the forced abdication of his brother, King Sa'ud. His first act as prime minister was to announce a sweeping reorganization of the government, and his major social reform was the abolition of slavery. In March 1975, King Faisal was assassinated by a nephew in an apparently isolated act of revenge. Faisal was succeeded by Crown Prince Khaled (Khalid ibn-'Abd al-'Aziz as-Sa'ud), who embarked on an expanded development program. King Khaled died of a heart attack in June 1982, and his half-brother, Crown Prince Fahd ibn-'Abd al-'Aziz as-Sa'ud, ascended the throne. King Fahd encouraged continuing modernization while seeking to preserve the nation's social stability and Islamic heritage. King Fahd, who had been frail since suffering a debilitating stroke in 1995, died at the age of 82 on 1 August 2005. He had delegated the daily affairs of state to Crown Prince Abdullah bin Abd al-Aziz al Sa'ud, his half-brother, since his stroke. Upon Fahd's death, Abdullah became king.

As the custodian of the holy Muslim shrines at Mecca and Medina, the monarchy has been deeply embarrassed by several incidents: the seizure of the Grand Mosque in Mecca by about 500 Islamic militants in 1979, which led to the deaths of more than 160; a riot by Iranian pilgrims during the 1987 pilgrimage, which cost 400 lives; and the suffocation of over 1,400 pilgrims in a tunnel at the Grand Mosque in 1990. Misfortune continued in 1994, when a stampede in Mecca killed 270 pilgrims rushing toward a cavern for a symbolic stoning ritual, and in 1997, when as many as 300 pilgrims were killed in a fire at a campsite outside the holy city. In 2004, a stampede during the Hajj pilgrimage left 251 dead.

When Iraq invaded Kuwait in 1990, Saudi Arabia, fearing Iraqi aggression, radically altered its traditional policy to permit the stationing of foreign troops on its soil. (The government was criticized by senior Saudi religious scholars for taking this step.) Riyadh made substantial contributions of arms, oil, and funds to the allied victory. It also expelled workers from Jordan, Yemen, and members of the Palestine Liberation Organization (PLO) for giving support to Iraq in the period after the invasion. Saudi Arabia's wealth and selective generosity has given it great political influence throughout the world and especially in the Middle East. It suspended aid to Egypt after that country's peace talks with Israel at Camp David, Maryland, but renewed relations in 1987. It secretly made substantial funds available to US president Ronald Reagan's administration for combating Marxist regimes in Central America. The kingdom played a key role in creating the Gulf Cooperation Council (GCC) and in working for an end to the civil strife in Lebanon. It actively supported Iraq during the war with Iran and tried, in vain, to prevent the conflict with Kuwait.

Saudi Arabia and the United States consult closely on political, economic, commercial, and security matters. The United States, with the United Kingdom, is a major supplier of arms and offers training and other support to the kingdom's defenses. These supports grew more visible following the Gulf War and continued Iraqi intransigence in the face of increased US and international pressure to disarm. The increased US military presence in Saudi Arabia in 1993–94 caused considerable irritation among conservative elements of Saudi society, who felt that the US military presence was blasphemous to Islam. In 1995, seven people, including five Americans, were killed in a terrorist attack on a Saudi National Guard Training Center in Riyadh. In June 1996, a car bomb detonated in front of a housing complex for US military personnel, killing 19 US servicemen, causing considerable uproar in the United States, and leading military planners to relocate US military bases to remote desert areas.

By the end of the 1990s, the Islamist backlash that followed Saudi-US cooperation in the Gulf War had been contained through the (mostly) temporary detention of hundreds of Islamic radicals and the long-term detention of their most prominent leaders. At the turn of the 21st century, much of the Saudis' attention was focused on unaccustomed economic pressures resulting from a 40% drop in oil prices in 1998. With almost half its GDP coming from oil, the country's budget deficit had soared as export revenues plummeted. Crown Prince Abdullah was instrumental in pushing through the production cutbacks agreed to by the OPEC countries in March 1999.

At a summit held in Beirut in March 2002, the Arab League accepted a Saudi proposal for peace between Israel and the Palestinians, put forward by Crown Prince Abdullah. Known as the "Beirut Declaration," the plan offered Israel normalized relations with the Arab states and a guarantee of peace and security in exchange for a full Israeli withdrawal from the territories occupied by Israel after the 1967 Arab-Israeli War, a "just solution to the Palestinian refugee problem," and Israeli recognition of a Palestinian state with its capital at East Jerusalem. The proposal was introduced against the backdrop of an escalation in violence in Israel and the occupied territories in spring 2002. In April, Crown Prince Abdullah met with US president George W. Bush, and presented him with an eight-point list of proposed agreements for immediate peace in the Middle East. After the peace plan was put forward, however, the violence in Israel and the West Bank and Gaza increased.

Because 15 of the 19 hijackers involved in the 11 September 2001 terrorist attacks on the United States were Saudis, in addition to al-Qaeda leader Osama bin Laden, the United States placed pressure on Saudi Arabia to undertake counterterrorism measures. In the run-up to the 2003 Iraq War, Saudi Arabia debated what degree of support it would offer the United States in the event of a war with Iraq. On 26 February 2003, Saudi Arabia stated that it would allow the use of the Prince Sultan Air Base, where most of the 5,000 US troops based in the kingdom were located, only for the enforcement of a "no-fly" zone over southern Iraq. It stated that it would not agree to allow US troops and planes based in the country to undertake a war with Iraq. The war began on 19 March 2003. In April, the United States announced it would pull nearly all of its military forces out of Saudi Arabia. Both countries stressed that they would remain allies.

Saudi Arabia's stability began to be seriously rocked in the early 2000s, with a series of suicide bombings and terrorist attacks aimed at Western and local targets. In May 2003, suicide bombers killed 35 people at housing compounds for Westerners in Riyadh. In November 2003, another suicide attack on a residential compound in Riyadh left 17 dead. During April 2004, four police officers and a security officer were killed in attacks near Riyadh, and a car bomb at a security forces' headquarters left four dead and 148 wounded. A group linked to the terrorist organization al-Qaeda claimed responsibility for the act. Al-Qaeda has long demanded that the Saudi regime sever its ties to the West and to America in particular. It also holds that the Saudi regime is corrupt. In May 2004, an attack at a petrochemical site in Yanbu killed five foreigners. That month, an attack and hostage taking at an oil company compound in Khobar left 22 people dead. In June 2004, three gun attacks in Riyadh resulted in the deaths of two Americans and a British cameraman. The same week, an American engineer was abducted and beheaded; his death, which was filmed, caused revulsion in the United States. Shortly thereafter, security forces killed a local al-Qaeda leader, Abdul Aziz al-Muqrin. An amnesty program for militants that followed had only a limited effect on the increasingly violent climate. In December 2004, an attack on the US consulate in Jeddah resulted in the deaths of five staff and four attackers. That month, two car bombs exploded in central Riyadh, and security forces killed seven suspects in a subsequent raid.

While the Saudi regime was being destabilized by terrorist attacks, calls for political reform caused concern among the rulers and pointed to a need to respond to such demands for change. In September 2003, 300 intellectuals, both men and women, signed a petition calling for far-reaching political reforms. In October, the police broke up an unprecedented rally for political reform in the center of Riyadh; more than 270 people were arrested. In November 2003, King Fahd granted wider powers to the Majlis al Shura (Consultative Council), enabling it to propose legislation without his permission. From February to April 2005, the firstever nationwide municipal elections were held, although women were not permitted to take part in the vote.

GOVERNMENT

Saudi Arabia is a religiously based monarchy in which the sovereign's dominant powers are regulated according to Muslim law (Shariah), tribal law, and custom.

There is no written constitution; laws must be compatible with Islamic law. In a decree of March 1992, the king was granted exclusive power to name the crown prince his successor. The Council of Ministers, first set up in 1953, is appointed by the king to advise on policy, originate legislation, and supervise the growing bureaucracy. The post of prime minister is reserved for the king and the crown prince is appointed first deputy prime minister. Most other important posts in the cabinet are reserved for members of the royal family.

In 1992, King Fahd announced the creation of the Majlis al Shura, or Consultative Council, an advisory body that would provide a forum for public debate. The king appointed 60 male citizens not belonging to the royal family to four-year terms on this body, which held its first meeting on 29 December 1992. In 1997, King Fahd increased the size of the Majlis to 90 members. In 2001, membership was increased to 120. In 2003, King Fahd expanded the powers of the Majlis al Shura. In 2005, nationwide municipal elections were held, although women did not participate.

POLITICAL PARTIES

Although there are no political parties in Saudi Arabia, various groups do function as blocs, contending for influence. Important among these groups are the conservative 'ulama (religious scholars) and the members of the royal family. Other alliances—among merchants, businessmen, professionals, and leading families—are concerned with economic matters. There is also a small but growing middle class that seems to want greater political participation and a less restrictive social environment. Each group brings its weight to bear on the policy-making bodies of the government and the king, whose leadership is upheld so long as he adheres to Islamic law, tradition, and the collective decisions of the 'ulama. In opposition to the royal family are small, strictly outlawed groups of prodemocracy activists and extremist Islamists, who have engaged in terrorist attacks, principally against signs of Western influence. Identified groups connected with Islamists include the Committee for the Defense of Legitimate Rights, the Reform Movement, and the Islamic Awakening.

LOCAL GOVERNMENT

The kingdom is divided into 13 emirates, each headed by a crown-appointed governor, often a prince or other member of the royal household or a member from an allied family. The provinces are subdivided into 103 governorates. Tribal and village leaders (sheikhs) report directly to provincial governors, giving the central government some control over outlying regions. Provincial governors, in turn, report to the minister of the interior. Each sheikh traditionally rules in consultation with a council. A large segment of the population remains tribally organized: tribes, headed by paramount sheikhs, are divided into subtribes, headed by local sheikhs. Decisions are made by tribal sheikhs, emirs, or other chiefs and their councils (majlis ).

JUDICIAL SYSTEM

The king acts as the highest court of appeal and has the power of pardon; access to the king and the right to petition him are well-established traditions. The judiciary consists of lower courts that handle misdemeanors and minor civil cases; high courts of Islamic law (Shariah); and courts of appeal. Islamic law of the Hanbali school prevails in Saudi Arabia, but justice is also based on tribal and customary law. Capital and corporal punishment are permitted; a 12-member Supreme Council of Justice reviews all sentences of execution, cutting, or stoning. A separate military justice system exercises jurisdiction over uniformed personnel and civilian government authorities.

There is no written constitution. The Justice Ministry is responsible for appointment and promotion of judges, who are confirmed by the Royal Court (Royal Diwan). Judges may be removed only by the Supreme Council of Justice or by royal decree. Although independence of the judiciary is guaranteed by law, courts are subject to the influence of royal family members. At the provincial level, governors also reportedly exercise influence over local judges.

Shariah summary courts have jurisdiction over common criminal cases and civil suits regarding marriage, divorce, child custody, and inheritance. While summary courts try cases involving small penalties, more serious crimes go to the Shariah courts of common pleas. Appeals from both courts are heard by the appeals courts in Mecca and Riyadh. There is also a Court of Cassation, as well as administrative tribunals that deal with proceedings involving claims against the government and enforcement of foreign judgments.

The military tribunals have jurisdiction over military personnel and civil servants charged with violation of military regulations.

ARMED FORCES

Saudi Arabia's armed forces totaled 199,500 active personnel in 2005, including the 75,000 members of the National Guard. The Army had 75,000 personnel and was equipped with 1,055 main battle tanks, 300 reconnaissance vehicles, over 970 armored infantry fighting vehicles, 3,190 armored personnel carriers, and 868 artillery pieces. The Army's aviation forces operated 12 attack helicopters. The Navy's active manpower totaled 15,500 personnel, including 3,000 Marines. The Navy was equipped with 7 frigates, 4 corvettes, 66 patrol/coastal craft, and 7 mine warfare vessels. The Navy's aviation wing operated 19 assault helicopters. The Air Force had 18,000 active personnel and was eqipped with 291 combat-capable aircraft, including 191 fighters and 85 fighter ground attack aircraft. The National Guard was used chiefly for internal security and is an elite strategic reserve loyal to the royal family. Saudi Arabia also had a 10,500-member frontier force, a 4,500-member Coast Guard, and a 500-member Special Security Force. The armed forces were equipped with the most advanced weaponry, including five Airborne Warning and Control Systems (AWACS) aircraft, which were sold to Saudi Arabia by the United States in 1981, over Israel's strenuous objections, as part of an $8.5 billion arms deal. In 2005, the defense budget for Saudi Arabia totaled $21.3 billion. The United States had a 300-member joint Army/Air Force training force in the country.

INTERNATIONAL COOPERATION

Saudi Arabia is a charter member of the United Nations (UN), having joined on 24 October 1945, and participates in ESCWA and several nonregional specialized agencies, such as the FAO, UNESCO, UNIDO, UNCTAD, the ILO, the World Bank, the IAEA, and the WHO. It is a founding member of the Arab League, OPEC, and OAPEC. Saudi Arabia is also a member of the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the African Development Bank, G-77, the Organization of the Islamic Conference (OIC), and the GCC. The nation has observer status with the OAS and the WTO.

Saudi Arabia has played a key role in promoting Israeli-Palestinian peace negotiations. Although supporting the Palestinian cause and the Arab League's boycott of Israel, the Saudi government in 1981 proposed that the Arab nations show willingness to extend diplomatic recognition to Israel in return for its withdrawal from lands occupied in the 1967 war (including the West Bank and East Jerusalem). Saudi Arabia supported international efforts against Iraq in the 1990–91 Gulf War and the 2003 Operation Iraqi Freedom. In February 2005, the Saudi government sponsored the firstever Counterterrorism International Conference in Riyadh. Saudi Arabia is part of the Nonaligned Movement.

In environmental cooperation, Saudi Arabia is part of the Basel Convention, the Convention on Biological Diversity, CITES, the Kyoto Protocol, the Montréal Protocol, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

The economy is heavily dependent on oil production, which provides approximately 45% of gross domestic product (GDP), 90% of export value, and 75% of government revenues. The country has the largest reserves of petroleum in the world, 25% of the proven total, with its northern neighbor, Iraq, holding second place and two other Arab neighbors, the United Arab Emirates and Kuwait, third and fourth. Rapidly increasing oil income after the first oil shock, 1973–74, led by the Organization of Petroleum Exporting Countries (OPEC) cartel, was used to increase disposable income, defense expenditures, and economic development. OPEC was able to enforce a quadrupling of oil prices (from $2.50/bbl to $10/bbl) largely because of King Faisal's agreement to deploy the oil weapon in conjunction with the Yom Kippur War. Per capita income in current dollars peaked at $15,700 in 1980 after the second oil shock, in 1978–79, in conjunction with the Iranian Islamic revolution, sent oil prices to all-time highs, peaking at just over $40/bbl in September 1980 at the start of the Iran-Iraq War. From there, population growth (about 350% 1973 to 2003, from 6.76 million to 24.3 million, including an estimated 5 million nonnationals), a decreasing OPEC share of world oil production (from over 50% in 1973 to less than 30% in 1985 to about 40% in 2003), oil conservation efforts among consumers, and limited success in diversifying the economy combined to reduce per capita income to $10,462 by 2004 (equivalent to $11,804 in purchasing power parity terms). The contribution of the oil sector (crude oil and refined products) to overall GDP, nevertheless, has substantially decreased, from 70% in 1980 to an estimated 45% in 2006.

The government has always made economic diversification a top priority, seeking to develop industries using petroleum, such as petrochemicals, as well as to finance industrialization. By 1989, the massive Jubail and Yanbu'al-Bahr industrial complexes, combining petrochemicals and steel production, had been largely completed. In the capital-intensive oil industry, the Saudis have relied heavily on foreign workers, who make up about 20% of the population. The kingdom's intolerance of democratic processes, labor unions, women's participation in the workplace, and foreign influences are impediments to development.

There are, however, mounting pressures for economic reform, including falling per capita income, attendant social frustrations, the emergence of government deficits, and a sizeable, though still manageable, external debt. In 1998, the government, led by Crown Prince (now King) Abdullah, embarked on a privatization strategy as a means of restoring per capita growth. In 1998, the Saudi Telecommunications Co. (STC) and the Saudi Electricity Co. (SEC) began privatizing telecommunications and electric power services.

Real growth of GDP averaged about 2.6% between 1988 and 1998. The economy shrank by 11% in 1998 due to low world oil prices but posted a 1% gain in 1999. Real GDP growth averaged 3.6% over the period 2000–04. Driven by high oil prices and rising production, economic growth was forecast to stay strong in 2006 and 2007, as oil revenues, though declining, are predicted to remain firm. Real GDP growth was projected to reach 3.7% in 2007, as oil output is expected to rise more firmly that year.

The economy remains dominated by large state-owned monopolies. For 2005, the private sector accounted for about 40% of GDP. The government is considering privatizing the national airline, petrochemical industries, the telecommunication sector, and electricity companies to foster diversification. The government encourages growth in agriculture as a means of reducing Saudi Arabia's reliance on food imports, but dramatic reductions in farm subsidies have resulted in a continuing decline in agricultural output.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Saudi Arabia's gross domestic product (GDP) was estimated at $340.5 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $12,900. The annual growth rate of GDP was estimated at 6.4%. The average inflation rate in 2005 was 0.6%. It was estimated that agriculture accounted for 3.3% of GDP, industry 74.7%, and services 21.9%.

Foreign aid receipts amounted to $22 million (about $1 per capita) and accounted for approximately 0.0% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Saudi Arabia totaled $71.160 billion (about $3,163 per capita), based on a GDP of $212.6 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings.

LABOR

The total labor force in Saudi Arabia as of 2005 was estimated at 6.76 million. In 2002, the services sector accounted for 74.2% of the workforce, with industry at 21%, agriculture at 4.7%, and 0.1% in undefined occupations. Approximately 35% of the Saudi labor force between the ages of 15 and 64 were foreigners, working mostly in the oil and construction sector. Estimates of the unemployment rate in Saudi Arabia varied widely in 2004. Unemployment among males was estimated by a local bank at 13%, although other estimates go as high as 25%.

Labor unions are illegal and collective bargaining is forbidden as well. Workers have few protections against employers. This is especially true of foreign workers, who are often forced to work long hours and beyond the terms specified by their contracts. Foreign workers have little redress against Saudi employers, since the labor system usually sides with the latter and employers can delay cases until the workers have to return home. Saudi employers routinely prevent workers from obtaining exit visas. In 2001, the government allowed the formation of labor committees, which are permitted to make recommendations to employers.

By royal decree, an eight-hour day and 48-hour week are standard. It is reported that domestic workers labor up to 20 hours a day, seven days a week. Labor regulations require protection from hazard and disease for employees except farmers, herdsmen, domestic servants, and family-operated business employees. Labor outdoors is prohibited when the temperature exceeds 50°c (122°f). Foreign workers report that these regulations are seldom enforced. With the consent of parents, children may work as young as 13, and children rarely work in Saudi Arabia outside of family businesses. There is no minimum wage.

AGRICULTURE

Agriculture engages 10% of the economically active population and accounts for about 5% of GDP. Only about 1.8% of Saudi Arabia's land area is cultivated, although 40% is suitable for grazing. Small owner-operated farms characterize Saudi Arabia's land-tenure system. About 96% of the farm area is owned, and only 4% rented. Less than 3% of the agricultural holdings are of eight hectares (20 acres) or more, and 45% are 0.4 hectare (1 acre) or less in size. About two-thirds of the cropped land is used for cereals and the remainder for vegetables and fruit. Although Saudi Arabia has more than 18 million date palms and provides over 13% of the world's supply of dates (an estimated 900,500 tons in 2004), the growing of dates has declined in favor of wheat, corn, sorghum, tomatoes, onions, grapes, and a variety of other fruits and vegetables. Nevertheless, dates remain the only major staple food crop with production sufficient to meet local demand. Saudi Arabia is 85% self-sufficient for vegetables and 66% for fruit. Wheat output increased from an estimated 150,000 tons in the late 1970s to 1,700,000 tons in 1985, and the government claimed that it had met total domestic demand by 1986–87. Production of wheat totaled 2,358,000 tons in 2004; government subsidies have led to a recurring overproduction of wheat. In 1989, the government attempted to discourage production by cutting price supports, but production is still several times higher than domestic demand. Barley production amounted to 138,400 tons in 2004.

Aquifers supply 80% of agriculture's water requirements but are not renewable. As of 2003, 43% of the arable land was irrigated. Agricultural irrigation accounts for 90% of total water needs, with wheat production alone using about one-third of the country's annual water supply.

ANIMAL HUSBANDRY

As of 2005, Saudi Arabia had an estimated 7,000,000 sheep, 2,200,000 goats, 260,000 camels, 350,000 head of cattle, 100,000 donkeys, and 3,000 horses. As imports of animal foodstuffs have increased and as greater varieties of agricultural products have been produced locally, camels have declined steadily in importance as a source of food. Arabia has long been famed for its horses, but the importance of the Arabian horse as an export item is now virtually nil. Donkeys and mules are still valued as pack animals, and the white donkeys of Al-Ahsa are well known. Sheep are found in all parts of Saudi Arabia where pasturage is available; they are raised for milk, as well as for meat and wool. Goats are kept for milk; their hair is used in rugs and tents, and the skins serve as water bags. Traditional farmers account for 80% of the kingdom's sheep production. Overall sheep production is expected to increase significantly in the next few years as a result of expansion in existing farms and establishment of new sheep breeding and fattening projects. About seven million head of live sheep are imported every year. The import level is expected to remain about the same in upcoming years, partly as a result of the increasing number of pilgrims who come to Mecca for the Hajj. Beef has not been a significant part of the Saudi diet, and most beef and veal is consumed by expatriates, as traditional Saudis prefer camel meat. Concern over BSE (the so-called Mad Cow disease) in 1996 led the government to ban beef imports from Ireland, the United Kingdom, France, Switzerland, and Portugal.

The output of poultry and eggs doubled during 1975–80, and in 2005, Saudi Arabia had an estimated 141 million poultry. Saudi Arabia is self-sufficient in milk production—in 2005, 1,149,000 tons were produced. There is no hog raising, and importation of pork products is banned, as it is contrary to Islamic law.

FISHING

Fishing provides employment and self-sufficiency to some communities on both Saudi coasts, although cash earnings are negligible. With rare exceptions, traditional fishing techniques are used. One of the few growth areas in this sector has been the export of Gulf shrimp. The fish catch was estimated at 64,753 tons in 2003.

FORESTRY

The only forest growth is found in the mountainous area that extends from southern Hijaz to 'Asir, accounting for no more than 0.6% of the total area. The principal varieties—acacia, date, juniper, wild olive, sidr, tamarind, and tamarisk—are generally not useful for timber, but some wood from date palms is used for construction. The trade deficit in forestry products was $739 million in 2004.

MINING

Oil continues to dominate Saudi Arabia's mining sector. The country supplied 12.8% of the world's crude oil output in 2003. Petroleum and petroleum products accounted for 90% of the country's export earnings in 2002 and 70% of government revenues. Crude oil and natural gas accounted for 42% of GDP; other minerals contributed 0.4% of GDP. Saudi Arabia has nevertheless diversified by expanding its gold production, as well as production of cement, fertilizer, petrochemicals, and steel. Cement production, construction, and fertilizer manufacturing ranked fourth, fifth, and sixth, respectively, among the country's leading industries in 2002.

Production of ore concentrate and bullion (metal content) in 2003 included copper, 800 metric tons (estimated); gold, 8,769 kg, and silver, 13,000 kg (estimated). In 2003, the country also produced lead, zinc, barite, basalt clays phosphatic fertilizer, granite crude gypsum, lime, limestone marble, nitrogen, nitrogenous fertilizers, pozzolan, salt, sand and gravel, silica sand, scoria, and sulfur. Mining operations continue at the ancient gold and silver underground mine Mahd adh-Dhahab (literally, "cradle of gold"), which is located southeast of Medina and probably dates from the time of King Solomon (10th century bc). Other gold producers are the open-pit silver and gold Amar Mine, southwest of Riyadh, which began operations in 2000, and the Sukhaybirat surface mine, northwest of Riyadh.

Feasibility studies at the Balghah Mine estimated resources to be 40 million tons at a grade of 1 grams per ton of gold. The remote Zabirah bauxite deposit has minable resources of 102 million tons. About 3,000 showings for at least 50 metallic and nonmetallic minerals have been located. Substantial national reserves of gold, iron ore, silver, copper, zinc, lead, pyrites, phosphate, magnesite, barite, marble, and gypsum have been suspected. An intensive search was under way by Saudi and foreign companies.

All minerals, including petroleum and natural gas, are owned by the government. A modern mining code encourages foreign participation, although majority holdings by national interests have increasingly been stressed. The Foreign Investment Act of 2000 gave international investors the same rights and privileges as Saudi investors. The government was also considering a revised mineral policy to attract additional investment in the mining sector. In 2000, the government established the Supreme Council for Petroleum and Mineral Affairs. The state-owned Saudi Arabian Mining Co. (Ma'aden) was created in 1997 and participated actively in and promoted mineral exploration and mining activities throughout the kingdom. Several metal and industrial mineral mining projects were expected to come onstream within the next 10 years.

ENERGY AND POWER

Saudi Arabia has one-fourth of the world's proven oil reserves and some of the lowest oil production costs. For the foreseeable future, Saudi Arabia will likely remain the largest net exporter of oil in the world. It is also a member of the Organization of Petroleum Exporting Countries (OPEC).

As of 1 January 2005, Saudi Arabia had proven oil reserves estimated at 261.9 billion barrels, which includes 2.5 billion barrels, or half of the oil reserves in the Saudi-Kuwaiti divided, or neutral, zone. About two-thirds of the country's reserves are graded as "light" or "extra light," with the remainder in the "medium" or "heavy" grades. Saudi Arabia has around 80 oil and gas fields and more than 1,000 wells. However, more than 50% of the country's oil reserves are in only eight fields. This includes the Ghawar and the Safaniya fields. The former has estimated reserves of 70 billion barrels and is the world's largest oil field, while the latter is the world's largest offshore oil field, with reserves estimated at 35 billion barrels. Oil production in 2004 (including the neutral zone) was estimated at 10.4 million barrels per day, of which 9.6 million barrels per day consisted of crude oil, and 1.2 million barrels per day were natural gas liquids. As a member of OPEC, Saudi Arabia is subject to OPEC's production quotas. As of July 1, 2005, the quota was set at 9.099 million barrels per day. As of July 2005, Saudi Arabia's crude oil production capacity stood at 10.5 to 11 million barrels per day. Domestic oil consumption in 2005 was estimated at 1.9 million barrels per day.

Saudi Arabia has eight oil refineries. As of 1 January 2005, Saudi Arabia's crude oil refining capacity was estimated at 1.745 million barrels per day.

In addition to its vast oil reserves, Saudi Arabia also has proven natural gas reserves estimated as of 1 January 2005 at 235.0 trillion cu ft (including the neutral zone), which places the country fourth in the world behind Russia, Iran, and Qatar, respectively. About 60% of the country's natural gas reserves are associated or produced along with oil, and come from the Ghawar, Safaniya, and Zuluf fields. One-third of the country's natural gas reserves are in the Ghawar field alone. In 2002, Saudi Arabia's gross production of natural gas was 2,119.61 billion cu ft of natural gas, of which 8.12 billion cu ft was vented or flared; 3.18 billion cu ft reinjected; and 2,108.31 billion cu ft marketed. Of the marketed amount, 2,002.36 billion cu ft was consumed domestically.

As of 2005, two major pipelines operated actively in Saudi Arabia: the five million barrel per day Petroline, used to transport crude oil to refineries in western Saudi Arabia and to the Red Sea for export, and the 290,000 barrel per day Abqaiq-Yanbu pipeline, which carries natural gas liquids to petrochemical plants in Yanbu. The IPSA pipeline had been closed indefinitely since Iraq invaded Kuwait in 1990.

Saudi Arabia has limited waterpower resources, and oil-powered diesel engines generate most of its electric power. Electrical service, which reached 2.2 million people in 1975, was extended to 4.2 million in 1979 and, by 1990, reached 92% of the population. Total installed generating capacity was estimated at 26.6 GW in 2003. Production of electricity in 2003 amounted to an estimated 145.1 billion kWh, of which 100% was from fossil fuels. As of 2002, demand for power was growing about 5% annually, and it was estimated that capacity would need to be nearly doubled by 2020 to meet the country's needs. In 2002, demand for electric power came to 127.310 billion kWh. Solar energy is becoming increasingly important as an alternative to diesel power, particularly for use in the desalination of seawater.

INDUSTRY

Although the Saudi economy has been virtually synonymous with crude oil, the country is attempting to diversify its manufacturing. Industrial products include cement, steel, glass, metal manufactures, automotive parts, and building materials, along with petroleum refinery products and petrochemicals (primarily methanol, ethylene, and polypropylene).

Industries producing consumer goods for the local market rely for the most part on imported raw materials. The most notable growth has occurred in food processing, such as meat-packing plants, flour mills, ice cream, yogurt, other dairy processing plants, and vegetable canneries. Other companies produce canvas cloth, surgical supplies, paper products, plastic pipes, electric appliances, paints, detergents, and pharmaceuticals.

SCIENCE AND TECHNOLOGY

The government encourages importation of high technology, especially in the oil industry, but its own commitment to national technological development has been limited. The Industrial Studies and Development Center is located in Riyadh, and the King Fahad University of Petroleum and Minerals, founded in 1963, is in Dhahran. Other institutions offering courses in basic and applied sciences include King Abdulaziz University, founded in 1967 at Jeddah; King Faisal University, founded in 1975 at Dammam and Al-Hassa; King Sa'ud University, founded in 1957 at Riyadh; and Yanbu Industrial College, founded in 1989 at Yanbu al-Sinaiyeh. In 1987–97, science and engineering students accounted for 17% of college and university enrollments. The King Abdul Aziz City for Science and Technology was founded in 1977 at Riyadh to formulate national policy for science and technology development and to draw up strategy and plans for its implementation.

DOMESTIC TRADE

Jeddah and Riyadh are the commercial and business centers of the country. Most major cities host large, modern supermarkets and specialty retail stores offering wide varieties of goods and services. Franchising has become popular with a wide range of goods and service-based establishments. Barter is the traditional means by which nomads and farmers obtain each other's products, and weekly markets are held in villages and small towns. However, the economy is being progressively monetized and is now completely so in the towns and cities. Newspapers, magazines, and billboards are the principal means of advertising.

Normal business hours vary in different provinces but are usually from 8 am to 12 noon and from 3 to 6 pm, Saturday through Wednesday. During the month of Ramadan, the workday is limited to six hours. Banks are generally open from 8 am to 12 noon, Saturday through Wednesday. Government offices and private businesses are closed Thursdays and Fridays. Markets and shops are open until 9 pm. Most businesses, including stores and restaurants, take breaks at the designated Muslim prayer times, which occur five times throughout the day. These breaks generally last about a half hour each.

FOREIGN TRADE

Saudi Arabia's commodity exports are dominated by mineral fuels, which account for 13% of the world's mineral fuel exports. Crude petroleum (79% of total exports, 16.3% of world crude petroleum exports) and refined petroleum products (12% and 7.1%, respectively) are the largest exports. Other exports include polymers (1.2%) and industrial alcohols (1.4%, accounting for 8.1% of the world's industrial alcohol exports).

Saudi Arabia's leading markets in 2004 were: the United States (18.5% of all exports), Japan (15.2%), South Korea (10.1%), and China (5.7%). The leading suppliers were the United States (9.3% of all imports), Germany (6.6%), Japan (6.5%), and the United Kingdom (5.3%).

In 2004, exports were valued at $113 billion, and imports were valued at approximately $36 billion, for a trade surplus of $77 billion.

BALANCE OF PAYMENTS

In 2000, foreign worker remittances, approximately $18 billion per year, continued to drain the current account. There are roughly six to seven million foreign workers and their families living in the country, and the remittances cause the currency to be subject to a mild devaluating pressure. Strong oil exports in the early 2000s, however, kept the current account in surplus.

In 2000, the current account recorded a $14.3 billion surplus, which declined (in line with oil revenue) to $9.4 billion in 2001, despite a significant fall in service debits. Higher oil prices and output in 2002 and 2003 saw the current account surplus widen again, to $11.9 billion and $28 billion, respectively. This surplus reached a record $51.5 billion in 2004. Due to projected higher oil prices and rising production, trade-driven current account surpluses were expected to widen further in 2005, 2006, and 2007.

BANKING AND SECURITIES

Until the mid-20th century, Saudi Arabia had no formal money and banking system. To the degree that money was used, Saudis primarily used coins having a metallic content equal to their value

Current Account			29,701.0
Balance on goods		61,546.0
Imports	-33,913.0
Exports	95,369.0
Balance on services		-15,453.0
Balance on income		-1,285.0
Current transfers		-15,016.0
Capital Account			…
Financial Account			-28,093.0
Direct investment abroad		…
Direct investment in Saudi Arabia		-587.0
Portfolio investment assets		-18,765.0
Portfolio investment liabilities		…
Financial derivatives		…
Other investment assets		-7,957.0
Other investment liabilities		-784.0
Net Errors and Omissions			…
Reserves and Related Items			-1,608.0
(…) data not available or not significant.

(full-bodied coins) for storing value and limited exchange transactions in urban areas. For centuries, foreign coins had served the local inhabitants' monetary needs. Development of banking was inhibited by the Quranic injunction against interest. A few banking functions existed, such as money changers (largely for pilgrims visiting Mecca), who had informal connections with international currency markets. A foreign bank was established in Jeddah in 1926, but its importance was minor. Foreign and domestic banks were formed as oil revenues began to increase. Their business consisted mostly of making short-term loans to finance imports, commercial trading, and businesses catering to pilgrims. Although lending at interest is prohibited by Islamic law, banking has flourished in Saudi Arabia as a conduit for the investment of oil money. The Saudi Arabian Monetary Agency (SAMA) was established by royal decree in 1952 to maintain the internal and external value of currency. The agency issues notes and coins with 100% cover in gold and convertible foreign exchange and regulates all banks and exchange dealers.

In 2002, there were 10 commercial banking houses, the largest of which was the National Commercial Bank. Cumulatively, the total size of the bank's balance sheets stood at over sr110 billion, with operating profits of sr2 billion in 2001. Eight of the 10 are joint-venture banks. The major foreign partners include Citibank, Arab Bank Ltd., Banque Indosuez, HSBC Holdings, and ABN Amro. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $48.0 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $88.4 billion.

SAMA runs a stock exchange in Saudi Arabia, created in 1990 as an over-the-counter market in which the commercial banks buy and sell shares by means of an electronic trading system. Although this system has facilitated easy access to transactions, the market remains relatively illiquid because of the small numbers of issuers and the narrow investor base. There are 76 companies listed on the exchange. The value of traded shares was $22.2 billion in 2001, a turnover ratio of 31.7%. Total market capitalization was just over $73 billion. The new IFCG Saudi Index closed up 7.4% in 2001, its fourth year of existence, after surging increases of 49% and 16.3% in 1999 and 2000, respectively. The market is closed to direct foreign investment, but foreigners can buy and trade shares of Saudi companies within a closed-end fund listed in the United Kingdom. As of 2004, a total of 73 companies were listed on the Tadwul Saudi Stock Market, which had a market capitalization of $306.248 billion. In that same year, the TASI Index rose 84.9% to 8,206.2.

INSURANCE

There were at least 70 insurance firms operating in Saudi Arabia in 1998, offering all categories and classes of insurance. The National Company for Cooperative Insurance, founded by royal decree in 1985 and owned by three government agencies, has share capital of sr250 million. In all, insurance premiums amount to over $760 million. Premiums covering oil facilities, major projects, marine and aviation represent over 44% of total premiums, motor insurance accounts for 23%, medical 18%, and fire 14%. Insurance organizations in Saudi Arabia are regulated by the Ministry of Commerce. One insurer is officially licensed by the kingdom, the National Company for Cooperative Insurance, which is primarily owned by the government. Insurance companies operating in the country adhere to the tenets of Islam, which does not recognize insurance. For this reason, there are no insurance laws on the books, except those dealing with benefits for injured employees. In 2003, the value of all direct insurance premiums written totaled $941 million, of which nonlife premiums accounted for $902 million. There is no data available on the country's leading insurance companies.

PUBLIC FINANCE

Public expenditures typically have acted as the vanguard for economic growth and development since the early 1970s. After completing the infrastructure in the 1970s and early 1980s, the emphasis of development expenditures moved to education and training to encourage private enterprise. By 1987, 70% of non-oil GDP was coming from the private sector. Deficits have been common since 1983, as oil revenues have declined. Oil revenues typically account for nearly 75% of government revenues. Deep budget cuts over the past years; higher charges on energy, electricity, water, telephone, worker and visa fees; and reduced subsidies on fuels, utilities, and airline fares have combined to reduce the deficit. To finance the deficit, the government borrows from domestic financial markets. However, Saudi government finances are not transparent; a perennial uncertainty is the difference between the revenues received by the national oil company, Aramco, and what is turned over to the Ministry of Finance to fund government expenses. The difference goes to Aramco's operating expenses and numerous off-budget expenditures. Observers believe that one major use of the off-budget money has been to pay down arrears on contracts, amounting to an estimated $30 billion in 1995. Estimates are that such arrears had been reduced to $3 billion by 2000. With the exception of the year 2000, the Saudi government has run a deficit every year since 1982. Rising oil prices in 2000, recovering from near-record lows in 1999, helped produce a $12 billion surplus as oil revenues came in 60% higher than expected. The accumulated domestic debt in 2000, however, was an estimated 105% of GDP, which has been financed by government pension funds and bonds held by banks and some companies. External debt from transactions in the privatized portions of the economy had reached nearly $40 billion in 2001, but this represents a still manageable 21% of the annual GDP.

The US Central Intelligence Agency (CIA) estimated that in 2005 Saudi Arabia's central government took in revenues of approximately $143.7 billion and had expenditures of $89.6 billion. Revenues minus expenditures totaled approximately $54 billion. Public debt in 2005 amounted to 56.7% of GDP. Total external debt was $34.55 billion.

TAXATION

As of 30 July 2004, the corporate tax rate in Saudi Arabia for companies in the natural gas sector is 30%, with an 85% rate applied to businesses in the oil sector. Other companies are taxed at a flat rate of 20%. Generally, capital gains are treated as ordinary income and taxed the corporate rate of 20%. However, there is no capital gains tax if the shares sold by non-Saudi shareholders are traded on the Saudi stock exchange and were acquired after 30 July 2004. Gains derived from the sale of property, other than those assets used in business activity, are also exempt. Dividends and interest are subject to a 5% withholding tax. Royalties are subject to a 15% with-holding rate. Foreigners who are self-employed professionals or general partners in Saudi partnerships are subject to these taxes.

Saudi Arabia has a flat 20% individual income tax rate on income that is domestically sourced. However, this tax applies to foreign citizens. Citizens of Saudi Arabia and other Gulf Cooperation Council (GCC) members pay a religious tax called the Zakat, an Islamic tax derived from the Shariah, which is applied directly to equity, less fixed assets, at a rate of 2.5%. The income of members of the royal family is tax exempt. There is no value-added tax (VAT) or sales tax.

CUSTOMS AND DUTIES

Saudi Arabia has increasingly used the tariff to protect local industries. The general tariff rate is 5%; new Saudi industries are protected by a 20% tariff rate. Importation of liquor, firearms, ammunition, narcotics, and certain other items is strictly forbidden, as are all imports from Israel and South Africa. No import taxes are levied beyond import tariffs.

FOREIGN INVESTMENT

A small group of upper-class Saudis have traditionally held substantial investments overseas. These Saudis hold large demand deposits in US and Western European banks and considerable investments in commercial ventures, especially real estate, in Egypt and other Middle Eastern countries. Since the early 1970s, the Saudi government has vastly increased its overseas investments in the United States, Western Europe, and Japan.

The Saudi government generally encourages foreign direct investment, especially in the case of joint ventures with Saudi partners. The foreign capital investment code specifies that foreign investments (1) must be a "development project," (2) must generate technology transfer, and (3) must have a minimum of 25% Saudi-owned equity in the project. However, in 1999, the government began revising its laws on foreign investment in an effort to attract more overseas capital and to lure back the large private Saudi capital that is invested abroad. Principal foreign investors include the United States, Japan, the United Kingdom, Switzerland, France, and Germany.

In 2000, the government approved a new Foreign Direct Investment (FDI) Law, which allows 100% foreign ownership of investments, and established the General Investment Authority (SAGIA) to provide information and assistance for foreign investors. By the first quarter of 2005, SAGIA showed a dramatic increase in the number of licenses issued to international and domestic projects involving ventures valued at $6.4 billion. That was an 800% increase over the same period in 2004. Saudi Arabia considers privatization to be a pathway to increased foreign investment.

There are different tax systems for Saudis and non-Saudis. Non-Saudi businesses are subject to a corporation tax of up to a maximum of 20% (with the exception of profits in the hydrocarbons sector, which are taxed on a sliding scale between 30% and 85%). Joint ventures between Saudis and non-Saudis are liable to tax on the non-Saudi portion of the profits.

ECONOMIC DEVELOPMENT

Saudi Arabia's first two development plans (1971–75 and 1976–80) stressed improvement of the country's economic infrastructure by expanding the highway system, port capacity, electric power output, water supply, and irrigated land. The third plan (1981–85), continuing the Saudi program of modernization without Westernization, aimed at diversifying and expanding the productive economic sectors of industry, mining, and agriculture. The government's long-term goal was to reduce the nation's dependence on oil exports and foreign labor. Expenditures for the 1981–85 plan were initially estimated (at current prices) at $235.8 billion, compared with $140 billion for the 1975–80 plan. At the end of the third development plan, most of the infrastructure had been put in place. The fourth development plan (1985–90) emphasized consolidation of the gains of the previous 15 years and rational planning of economic activity. From the plan's emphasis on cost reduction and improvement of economic performance, it was clear that it had been drawn up under the assumption that the days of huge surpluses in the oil sector were over. Planned expenditures for the fourth plan were reduced several times. The fifth plan (1990–95) followed the goals of the fourth plan closely. Stressing economic diversification, this plan supported industry, agriculture, finance, and business services. An important goal of the sixth plan (1995–2000) was to reduce water consumption by 2% annually over the plan's period. The seventh development plan (2000–05) was geared toward offering foreign investors opportunities to tap into sectors of the economy that had recently undergone privatization: health care, electrical power generation, and water desalination. In addition to privatization, the seventh development plan focused on diversification of national revenue resources, expansion of the production base, and the creation of more jobs for Saudis. During the five-year period, the government planned to create 817,000 new jobs for Saudi citizens (non-Saudi residents held 488,600 of those jobs at the time). The service sector was projected to realize the greatest increase in jobs. Funds were also devoted to the health care industry, including the construction of hospitals and medical colleges (some exclusively for women), and to education.

On 1 September 2005, the OPEC basket price of oil rose to $61.37/barrel. This increase in oil prices reflected a strong increase in demand from China and other markets. The higher oil prices were forecast to boost Saudi Arabia's trade surplus in 2005 and 2006, implying that the current account surplus would also widen.

In 1999, Crown Prince (now King) Abdullah revitalized efforts to secure Saudi Arabia's acceptance in the WTO. In 2003, Saudi Arabia hired a Texas law firm to lobby on its behalf for accession to the WTO. In 2005, Saudi Arabia formally joined the WTO, winding up a 12-year negotiation process.

SOCIAL DEVELOPMENT

Social insurance provides health care, disability, death, old-age pension, and survivor benefits for workers and the self-employed, with some exclusions. There is a special system in place for government workers. Retirement is allowed at age 60. This system is funded by 9% payroll deductions from workers, 9% payroll contributions from employers, and some government funds. Firms with 10 or more workers are required to provide 100% of wages for a month of sick leave and 75% of wages for two additional months.

The customs and regulations governing the behavior of women are strict even by the standards of the Islamic world. Despite the shortage of Saudi labor, the government is unsympathetic to the participation of women in the workplace: only 5% of the labor force is female. Extreme modesty of dress is required. Women wear the abaya, a long black garment, and they must also cover their face and hair. Women are not permitted to drive motor vehicles. Women must enter public buses through a rear door and sit in a segregated area. Women may not travel without a male member of the family. By law, women can only enter a hospital for treatment with the consent of a male relative. Domestic abuse is prevalent. As of 2004, there were no active women's rights groups.

The government does not recognize international standards on human rights. Rights of privacy, freedom of speech, the press, assembly, association, religion, and movement are strictly curtailed. Security forces commit human rights abuses with the acquiescence of the government, even though they are nominally illegal. Corporal punishment, including amputation of limbs, beheading, and stoning, are used. Executions are carried out for crimes including alcohol trafficking, armed robbery, adultery, and the practice of witchcraft. Most of those executed were foreigners.

HEALTH

The government budgeted sr63.9 billion for health and social services (of a total budget of sr497.6 billion). Targets included improving immunization coverage and achieving better regional coverage of health care provision (which remains inadequate). The public health care system is supplemented by a small but generally excellent private health sector. It is the government's intention to provide integrated health services free of charge, or at a nominal fee, to all citizens. The government also hopes to establish a local manufacturer of pharmaceuticals and medical equipment and supplies. As of 2004, there were an estimated 140 physicians, 17 dentists, 24 pharmacists, and 304 nurses per 100,000 people.

Despite recent advances, Saudi Arabia still suffers from severe health problems. A major cause of disease is malnutrition, leading to widespread scurvy, rickets, night blindness, and anemia, as well as low resistance to tuberculosis. Immunization rates for children up to one year old were tuberculosis, 93%; diphtheria, pertussis, and tetanus, 97%; polio, 97%; and measles, 94%. The rates for DPT and measles were 96% and 91%, respectively. Dysentery attacks all ages and classes and trachoma is common. A government campaign was successful in eradicating malaria. Typhoid is endemic, but acquired immunity prevents serious outbreaks of this disease. Approximately 95% of the population had access to safe drinking water and 100% adequate sanitation. The HIV/AIDS prevalence was 0.01 per 100 adults in 2003.

In 1960, life expectancy at birth was 43 years, but it averaged 75.46 years in 2005. During the same time period, infant mortality fell from 185 to 13.24 per 1,000 live births. It is estimated that the Bedouin account for about one-third of all infant deaths. The maternal mortality rate was 22 per 100,000 live births. As of 2002, the crude birth rate and overall mortality rate were estimated at 37.2 and 5.9 per 1,000 people, respectively. Birth control was used by 21% of married women. Almost 97% of the population had acces to health care services. Total health care expenditures were estimated at 8% of GDP.

HOUSING

In 2000, there were about 3,427,670 occupied households in the country, serving about 20,846,884 people. About 32% of all occupied housing units were apartments, 29.8% were traditional single-family houses, and 20% were single-household villas. Most housing is constructed of concrete and brick. About 44.5% of all occupied housing is owner occupied.

The continuing influx of rural people to towns and cities, coupled with the rise in levels of expectation among the urban population, has created a serious housing problem; improvement in urban housing is one of Saudi Arabia's foremost economic needs. Some 506,800 dwelling units were built in the period 1974–85: 389,000 by the private sector, with the help of the Real Estate Development Fund, and 117,800 by the Deputy Ministry of Housing and other government agencies. In the oil districts, Aramco, through loans and other assistance, has encouraged construction of private homes and has built accommodations for its unmarried Saudi staff members. The Real Estate Development Fund, established in 1975, continues to provide interest-free loans for home construction to individuals as well as private companies.

EDUCATION

Until the mid-1950s, Saudi Arabia's educational system was primarily oriented toward religious schooling that stressed knowledge of the Quran (Koran) and Hadith (sayings of Muhammad and his companions). Except for basic arithmetic, reading, and writing, secular subjects were not taught in the schools. There was a highly developed oral culture, however. Nearly all of the students were boys; education of girls was virtually nonexistent and took place in the home, if at all. The first school for girls was built in 1964, and now girls' schools exist around the country. Schools continue to be segregated by gender. The General Presidency for Girls' Education administers girls' schools and colleges. By 1999, females accounted for 48% of primary enrollment and 46% of secondary enrollment.

Education is free at all levels, including college and postgraduate study. Elementary school covers six years of study. This is followed by three years of basic intermediate school. Students may then choose to attend either a three-year general secondary school or a three-year technical school (junior college) that offers vocational, commercial, and agricultural studies. The academic year runs from October to July.

In 2001, about 5% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 54% of age-eligible students. The same year, secondary school enrollment was about 53% of age-eligible students. It is estimated that about 74.8% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 12:1 in 2003; the ratio for secondary school was also about 12:1.

Higher education is offered in at least seven universities and 83 colleges. The principal universities are King Sa'ud University (formerly Riyadh University), founded in 1957, and King Abd al-'Aziz University of Jeddah, founded in 1967. In 2003, it was estimated that about 25% of the tertiary-age population was enrolled in tertiary education programs. The adult literacy rate for 2004 was estimated at about 79.4%, with 87.1% for men and 69.3% for women.

As of 2003, public expenditures on education were estimated at 8.3% of GDP.

LIBRARIES AND MUSEUMS

The King Fahd National Library, founded in Riyadh in 1968, has 462,000 volumes. The largest library system is that of King Sa'ud University established in 1957, with 14 branches and a collection of more than 1.8 million volumes; the library at King 'Abd al-'Aziz University has 560,000 volumes. The library of the University of Petroleum and Minerals in Dhahran, with almost 335,000 volumes, is the nation's largest specialized collection. The largest public library, at Riyadh, contains 275,000 volumes.

There are 10,150 documented monuments and about a dozen museums in Saudi Arabia. The National Museum, originally opened at Riyadh in 1978, focuses on archaeology and ethnography. Major renovations were completed in 1999. Many of the other historic and cultural sites are religious in nature and the high figures for attendance reflect the huge numbers of Muslim pilgrims who visit the kingdom each year. Riyadh is also home to a local museum, an archaeological museum at King Sa'ud University, and a geological museum.

MEDIA

Postal, telephone, cable, and wireless services are regulated by the Ministry of Communications. Saudi Arabia is directly connected by radiotelephone to the United States, other Arab countries, and Western Europe, and automatic internal lines connect most of the major cities. In 2003, there were an estimated 155 mainline telephones for every 1,000 people; about 73,600 people were on a waiting list for telephone service installation. The same year, there were approximately 321 mobile phones in use for every 1,000 people.

The Broadcasting Service of the Kingdom of Saudi Arabia (BSKSA) is owned and operated by the state, sponsoring four television networks. Private broadcasters are not allowed in the country. However, there are millions of satellite dishes in the country receiving foreign broadcasts. The Ministry of Culture and Information oversees radio and television broadcasts, with the right to censor any references to religions other than Islam, politics, sex, alcohol, and pigs or pork. In 2003, there were an estimated 326 radios and 265 television sets for every 1,000 people. The same year, there were 130 personal computers for every 1,000 people and three of every 1,000 people had access to the Internet. There were 57 secure Internet servers in the country in 2004. All Internet servers are monitored by the government.

The first newspaper in what is now Saudi Arabia was Al-Qiblah, the official publication of King Hussein of Hijaz, founded in 1915. With the end of the short-lived Hijaz Kingdom in 1925, a Saudi-sponsored paper, called Umm al-Qura (The Mother of Towns, Mecca), was established. Newspapers are privately owned, but self-censorship is widely employed. The Ministry of Culture and Information appoints all editors-in-chief. Criticism of the fundamental principles of Islam and of basic national institutions, including the royal family, is not permitted. The largest Arabic daily papers (with 2002 circulations) are Al-Asharq Al-Awsat (The Middle East, 224,990); Al-Riyadh (150,000); Okaz (107,600); and Al-Jazirah (The Peninsula, 94,000). Leading English-language dailies are the Arab News (110,000) and Saudi Gazette (50,000).

The government is said to severely limit freedom of speech and the press, punishing any criticism of Islam, the ruling family, or the government with detention and arrest.

ORGANIZATIONS

Saudi social tradition, which emphasizes the exclusiveness of family, clan, and tribe, generally militates against the formation of other social organizations. The absence of political and economic organizations is also a result of the prevalence of tradition. However, there are chambers of commerce in Ad Dammām, Jeddah, Mecca, Medina, and Riyadh. The umbrella organization of the Council of Saudi Chambers of Commerce and Industry is in Riyadh.

There are several professional associations, particularly in medical and health care fields. Many of these, such as the Saudi Pediatric Association, promote public education and research while also serving as a professional networking organization. The King Faisal Center for Research and Islamic Studies serves as a multinational cultural and educational organization.

National youth organizations include the Saudi Arabian Assembly of Muslim Youth and the Saudi Arabian Boy Scouts Association. The World Assembly of Muslim Youth, based in Riyadh, offers a variety of camping, recreational, and educational programs for youth. There are a number of national and multinational sports associations based in the country, representing such pastimes as cricket, tennis, tae kwon do, and horse racing. Several sports associations are affiliated with the national Olympic Committee,

The Muslim World League works for the welfare of women and children. The Red Crescent Society and UNICEF are active.

TOURISM, TRAVEL, AND RECREATION

Saudi Arabia was once one of the hardest places in the world to visit due to heavy restrictions on tourism. In 2000, the government opened up the country and added tourist visas; the Tourism Higher Authority was also created to expand the tourism facilities. Every year, however, there is a great influx of pilgrims to Mecca and Medina. In 2004, almost two million pilgrims traveled to Mecca.

All visitors, including pilgrims, are required to have a passport valid for at least six months and an onward/return ticket. Visitors in transit or from a Gulf Cooperation Council country are not required to have a visa. Women must have proof of accommodations for their stay, and if they arrive alone, their sponsor or husband must pick them up at the airport. Women visitors are also not allowed to drive cars. Pilgrims who travel to Mecca are required to have the meningococcal vaccine. Precautions against typhoid, malaria, hepatitis, and meningitis are recommended for all who travel to Saudi Arabia.

There were 7,332,233 visitors who arrived in Saudi Arabia in 2003, 53% from the Middle East. Hotel rooms numbered 81,197, with an occupancy rate of 42%. The average length of stay that year was three nights.

Traditional sports include hunting with salukis, falconry, and horse and camel racing. Modern sports facilities include the Riyadh Stadium, complete with Olympic-standard running tracks and football (soccer) fields.

In 2004, the US Department of State estimated the daily cost of staying in Riyadh at $250; in Jeddah, $175; and other areas, $186.

FAMOUS SAUDIS

Although Saudi Arabia has a relatively short history as a nationstate, it is heir to an Islamic civilization that developed from the teachings of Muhammad (570–632), born of the tribe of Quraysh in Mecca. The branch of Islam that claims most contemporary Saudis is that preached by Muhammad bin 'Abd al-Wahhab (1703?–91), a fundamentalist reformer.

The Saudi who has gained greatest renown outside the modern kingdom of Saudi Arabia is 'Abd al-'Aziz ibn 'Abd ar-Rahman al-Faysal as-Sa'ud, better known as Ibn-Sa'ud (1880–1953), the father of his country. Forced into exile with his family at a young age, he reconquered his patrimony and left behind him the state of Saudi Arabia.

In 1964, Faisal (Faysal ibn-'Abd al-'Aziz as-Sa'ud, 1906–75) was proclaimed king. In his role as prime minister, Faisal instituted many economic and social reforms, including the abolition of slavery. Upon his assassination in March 1975, he was succeeded as king and prime minister by Khaled (Khalid ibn-'Abd al-'Aziz, 1913–82). Together with Crown Prince Fahd ibn-'Abd al-'Aziz (1923–2005), King Khaled broadened the country's development policies.

After Khaled's death, Fahd became king; he pursued the same cautious program of modernization as his two predecessors. Abdullah bin Abdulaziz al-Saud (b.1924), Fahd's half-brother and de facto ruler of the country since Fahd became incapacitated from a stroke in 1995, became king upon Fahd's death in 2005. Ahmad Zaki Yamani (b.1930), a former minister of petroleum and mineral resources, gained an international reputation as a spokesman for the oil-exporting countries.

DEPENDENCIES

Saudi Arabia has no territories or colonies.

BIBLIOGRAPHY

Al Munajjed, Mona. Women in Sa'udi Arabia Today. Houndmills, U.K.: Macmillan, 1997.

Anscombe, Frederick F. The Ottoman Gulf: The Creation of Kuwait, Saudi Arabia, and Qatar. New York: Columbia University Press, 1997.

Bahgat, Gawdat. The Gulf Monarchies: New Economic and Political Realities. London: Research Institute for the Study of Conflict and Terrorism, 1997.

Bradley, John R. Saudi Arabia Exposed: Inside a Kingdom in Crisis. New York: Palgrave Macmillan, 2005.

Champion, Daryl. The Paradoxical Kingdom: Saudi Arabia and the Momentum of Reform. New York: Columbia University Press, 2003.

Harrison, Martin. Saudi Arabia's Foreign Policy: Relations with the Superpowers. Durham, N.C.: Centre for Middle Eastern and Islamic Studies, University of Durham Press, 1995.

Holden, David, and Richard Johns. The House of Saud. New York: Holt, Rinehart and Winston, 1981.

Hourani, Albert Habib. A History of the Arab Peoples. Cambridge, Mass.: Belknap Press of Harvard University Press, 2002.

Kostiner, Joseph. The Making of Sa'udi Arabia, 1916–1936: From Chieftancy to Monarchical State. New York: Oxford University Press, 1993.

Long, David E. The Kingdom of Saudi Arabia. Gainesville: University Press of Florida, 1997.

The Middle East. Washington, DC: CQ Press, 2005.

Peterson, J. E. Historical Dictionary of Saudi Arabia. Lanham, Md.: Scarecrow Press, 2003.

Seddon, David (ed.). A Political and Economic Dictionary of the Middle East. Philadelphia: Routledge/Taylor and Francis, 2004.

Vasil'ev, Aleksei M. The History of Saudi Arabia. London: Saqi Books, 1998.