Occupying most of the Arabian peninsula, Saudi Arabia covers an area as large as western Europe. Over 95% of its land is desert, with the most arid part, known as the "Empty Quarter" or Rub al Khali, being in the southeast. Saudi Arabia has the world's largest oil and gas reserves. It includes Islam's holiest cities, Medina and Mecca, visited each year by two million Muslims performing the pilgrimage known as the haj. The al-Sa'ud family have been Saudi Arabia's absolutist rulers since 1932. In theory, Islamic sharia underpins the constitution.

The Saudis, who take their name from the ruling al-Sa'ud family, were united by conquest between 1902 and 1932 by King Abd al-Aziz al-Sa'ud, who expelled the Turks and defeated rival dynasties. The vast majority of Saudis are Sunni Muslims who follow the wahhabi (puritan) interpretation of Islam and embrace sharia (Islamic law). The politically dominant Nejdi tribes from the central plateau around Riyadh are Bedouin in origin. The Hejazi tribes, from the south and west, have a more cosmopolitan, mercantile background, but are largely displaced from politics. In the eastern Al-Hasa province there is a Shi'a minority of some 300,000, many of whom are employed in the oil fields. Women have to wear the veil, cannot hold a driving license, and have no role in public life. They are effectively barred from the workplace except as teachers and nurses. However, in 2000 Saudi Arabia decided to sign the UN convention on women's rights – provided it did not contradict sharia, and issued women with identity cards from 2001.

Strengths

Vast oil and gas reserves. Soaring world oil prices in 2000 signified recovery from 1986 collapse. World-class associated industries. Accumulated surpluses and steady current income. Large income from two million pilgrims to Mecca annually.

Weaknesses

Lack of indigenous skilled workers. Food production requires heavy subsidy. Most consumer items and industrial raw materials imported. Up to 20% youth unemployment. Large national debt. Primitive system whereby royal family technically owns most of the national wealth.

Profile

Since the 1970s, great efforts have been made to reduce dependence on oil exports and to provide employment for young Saudis. By the latter part of 2000, Saudi Arabia steered OPEC toward controlling a surge in oil prices to avoid recession in the industrialized countries or spurring a drive to develop alternative energy. Since April 2000, approved foreigners have been allowed complete ownership of Saudi businesses and rights to property. Large sums have been spent on achieving a US-standard infrastructure, to provide the basis for a manufacturing economy. The economy, however, remains dependent on foreign workers.

Saudi Arabia is an absolute monarchy. Since 1993 a Consultative Council (Majlis ash-Shoura) has been appointed by the king.

Profile

The royal family, the House of Sa'ud, rules by carefully manipulating appointments in all sectors of government. Frequent changes of personnel within the armed forces ensure that officers do not build personal followings. All influential cabinet portfolios, apart from those of oil and religious affairs, are held by members of the royal family.

Absolutist rule means that domestic politics are virtually nonexistent. The regime retains feudal elements: weekly majlis, or councils, are held where citizens can present petitions or grievances to leading members of the royal family. Large cash sums are often dispensed at these meetings.

The legitimacy of the regime is built on its adherence to Islamic values, and the backing of the ulema (scholars). It is the stress on Islam that colors Saudi life most. The 5000-strong mutawa (religious police) enforce the five-times-a-day call to prayer, when businesses must close. During Ramadan the mutawa are especially active.

Main Political Issues

Questioning the ruling family

Following the 1991 Gulf War, a civil rights campaign emerged to challenge the authority of the ruling family, demanding closer adherence to Islamic values. The movement objected to the presence of US troops on Saudi territory and the consequent exposure to "corrupt" Western culture. The al-Sa'uds moved swiftly to quash the protest but exiled opponents have continued their activities using fax machines and e-mail. The most vociferous denunciations of the royal family came from Osama bin Laden, formerly part of the inner circle, operating from bases abroad.

The succession issue

The question of succession and the possibility of a future power struggle, rooted in rivalries endemic to the House of Sa'ud, emerged in 1996, when King Fahd suffered a stroke. The management of day-to-day affairs passed briefly to his half-brother, Crown Prince Abdullah, who remains in effective if no longer formal control.

With the world's biggest oil and gas reserves, Saudi Arabia plays a key role in the global economy and is among the top ten traders of all the world's major industrialized nations.

Infant mortality has dropped and endemic disease has been nearly eradicted. Health care outside major centers such as Riyadh and Jiddah still remains relatively undeveloped, given Saudi Arabia's huge economic resources. However, large sums have been spent on employing Western expertise. Many Saudis are still sent overseas by the government for treatment, especially for transplant operations, which pose some ethical problems for religious leaders. The private sector has also been encouraged.

Growing numbers of Western-educated Saudis have intensified pressure for social and political change. In the 1950s, the religious establishment was persuaded to give women equal opportunities in education. Economic analysts have criticized Saudi universities for turning out many graduates in Islamic theology, but not enough engineers and technocrats. Many Saudis still travel abroad to complete their studies.

Saudi citizens are among the most prosperous in the world. Non-Saudi citizens, especially the guest workers from the Indian subcontinent and the Philippines, are much poorer. The al-Sa'uds have used their wealth to create a cradle-to-grave welfare system. Ownership of TVs, telephones, and VCRs is among the region's highest. The distribution of wealth is carefully controlled by the royal family through the majlis system. There is no stock market, although shares in public companies are traded privately. Many Saudis refuse for religious reasons to accept interest on deposits with banks, but Islamic banks offer profit-sharing investment schemes as an alternative.

The unification of Saudi Arabia under King Abd al-Aziz (ibn-Sa'ud) was achieved in 1932. The kingdom remains the only country in the world which is named after its royal family.

• 1937 Oil reserves discovered near Riyadh.
• 1939 Ceremonial start of oil production at Az Zahran.
• 1953 King Sa'ud succeeds on the death of his father Abd al-Aziz.
• 1964 King Sa'ud abdicates in favor of his brother Faisal.
• 1973 Saudi Arabia imposes oil embargo on Western supporters of Israel.
• 1975 King Faisal assassinated by a deranged nephew; succeeded by his brother Khalid.
• 1979 Muslim fundamentalists led by Juhaiman ibn Seif al-Otaibi seize Grand Mosque in Mecca, proclaim a mahdi (savior) on first day of Islamic year 1400.
• 1981 Formation of Gulf Cooperation Council, with its secretariat in Riyadh.
• 1982 King Fahd succeeds on the death of his brother King Khalid. Promises to create consultative assembly.
• 1986 Opening of King Fahd Causeway to Bahrain. Sheikh Yamani sacked as oil minister.
• 1987 Diplomatic relations with Iran deteriorate after 402 people die in riots involving Islamic fundamentalists at Mecca during the haj (pilgrimage).
• 1989 Saudi Arabia signs nonaggression pact with Iraq. Saudi Arabia brokers political settlement to Lebanese civil war.
• 1990 Kuwaiti royal family seeks sanctuary in Taif after Iraqi invasion. Many allegedly pro-Iraqi Jordanians and Yemenis expelled.
• 1990–1991 US-led forces assemble in Saudi Arabia for Operation Desert Storm. Public executions are halted.
• 1991 Iraqis seize border town of Al Khafji, but are repulsed by Saudi, US, and Qatari forces.
• 1993 King Fahd appoints Consultative Council (Majlis ash-Shoura).
• 1996 King Fahd briefly relinquishes control to Crown Prince Abdullah. Bomb attack at US military complex in Az Zahran kills 19 US citizens.
• 1997, 2001 Consultative Council expanded, first to 90 then to 120 members.
• 2002 Crown Prince Abdullah unveils Middle East peace plan; endorsed by AL summit in Beirut.