Saudi Arabia

Saudi Arabia Part of the Ottoman Empire since 1517, it was reclaimed by the Bedouin tribes rallied under the leadership of Abd al-Aziz ibn Saud from 1902. In the Treaty of Jeddah (1927) he was recognized as King of the Hejaz, of the Nejd and its peoples, and of the Principality of Asir. In 1932 the country was proclaimed the Kingdom of Saudi Arabia. Until the discovery of oil it was a poor desert state whose only wealth came from the pilgrimages to the holy cities of Mecca and Medina. An oil concession was awarded to a US firm, Standard Oil of California, in 1933, and oil was first exported in 1938. In 1944 the oil company was reformed as the Arabia–American Oil Company (ARAMCO). Ibn Saud was succeeded by his son Saud (r. 1953–64), who was deposed by his brother Faisal. The latter introduced Western administrative and economic reforms. Subsequently the country's vast oil revenues, which increased further after ARAMCO was fully nationalized in 1979, were used to establish an exemplary medical health care system, and an education system to reduce the country's dependence on foreign skilled labour. There were also attempts to increase domestic food production, which were hampered by the lack of water and the poor soil of most of the country. Faisal was murdered in 1975, and succeeded by Khalid (r. 1975–82) and Fahd (r. since 1982).

Despite the introduction of Western capitalism, traditional Islamic law (shariah) remained the basis of the legal system. As the country's spiritual and secular leader, the King consulted tribal chiefs and other religious leaders on important matters, but was unfettered by political parties, a parliament, or even a Constitution. As a token concession to demands for greater political freedoms, a consultative assembly was set up in 1993. However, all of its members were appointed by the monarch, its meetings were held in secret, and it had no powers of decision.

For three reasons, the country enjoyed continued Western military and diplomatic support, as shown in the Gulf War, when it was defended from a spread of Iraqi aggression. (1) Its brand of Islam was traditional, but not politically radical. It was also deeply anti-Communist and thus opposed to the regimes of Nasser and Assad. (2) It was important to the West geopolitically as it served as a politically moderate counterweight to Iraq and Iran. During the Cold War, it contained the largest US military base east of Germany and west of Japan. (3) With the world's largest known oil reserves, the country was of crucial importance as a ‘swing producer’: with the greatest financial and physical ability to vary supply, it was the best guarantor for low and stable oil prices.

In the 1990s, the government attempted with some success to open up the economy to foreign investment and reduce its reliance on oil production. The economic transformations this entailed, however, led to a growth in Islamic nationalism. It created substantial support for a religiously based anti-Americanism, which at its extreme was exploited by—and helped support— Osama Bin Laden and his terrorist activities. Although the Saudi government was at first sceptical vis-à-vis the US reaction against the Taliban following the September 11 attacks, it gave cautious assistance to the US in its War against Terrorism. In particular, it hoped to exert a moderating influence in the Middle East, by attempting to promote peace between Israel and Palestine in 2001 and 2002.