Background: In 1902 Abdul al-Aziz Ibn SAUD captured Riyadh and set out on a 30-year campaign to unify the Arabian peninsula. In the 1930s the discovery of oil transformed the country. Following Iraq's invasion of Kuwait in 1990 Saudi Arabia accepted the Kuwaiti royal family and 400,000 refugees while allowing Western and Arab troops to deploy on its soil for the liberation of Kuwait the following year. A burgeoning population aquifer depletion and an economy largely dependent on petroleum output and prices are all major governmental concerns.
Geography Note: extensive coastlines on Persian Gulf and Red Sea provide great leverage on shipping (especially crude oil) through Persian Gulf and Suez Canal
Environment Current issues: desertification; depletion of underground water resources; the lack of perennial rivers or permanent water bodies has prompted the development of extensive seawater desalination facilities; coastal pollution from oil spills
Administrative divisions: 13 provinces (mintaqat singular - mintaqah); Al Bahah Al Hudud ash Shamaliyah Al Jawf Al Madinah Al Qasim Ar Riyad Ash Sharqiyah (Eastern Province) 'Asir Ha'il Jizan Makkah Najran Tabuk
National holiday: Unification of the Kingdom 23 September (1932)
Constitution: governed according to Shari'a (Islamic law); the Basic Law that articulates the government's rights and responsibilities was introduced in 1993
Legal system: based on Islamic law several secular codes have been introduced; commercial disputes handled by special committees; has not accepted compulsory ICJ jurisdiction
International organization participation: ABEDA AfDB AFESD AL AMF BIS CCC ESCWA FAO G-19 G-77 GCC IAEA IBRD ICAO ICC ICRM IDA IDB IFAD IFC IFRCS ILO IMF IMO Inmarsat Intelsat Interpol IOC ISO ITU NAM OAPEC OAS (observer) OIC OPCW OPEC UN UNCTAD UNESCO UNIDO UPU WFTU WHO WIPO WMO WTrO (applicant)
Flag description: green with large white Arabic script (that may be translated as There is no God but God; Muhammad is the Messenger of God) above a white horizontal saber (the tip points to the hoist side); green is the traditional color of Islam
Economy overview: This is an oil-based economy with strong government controls over major economic activities. Saudi Arabia has the largest reserves of petroleum in the world (26% of the proved total) ranks as the largest exporter of petroleum and plays a leading role in OPEC. The petroleum sector accounts for roughly 75% of budget revenues 40% of GDP and 90% of export earnings. About 35% of GDP comes from the private sector. Roughly 4 million foreign workers play an important role in the Saudi economy for example in the oil and service sectors. Saudi Arabia was a key player in the successful efforts of OPEC and other oil producing countries to raise the price of oil in 1999 to its highest level since the Gulf War by reducing production. Although oil prices are expected to remain relatively high in 2000 Riyadh expects to have a $7.5 billion budget deficit in part because of increased spending for education and other social problems. The government in 1999 announced plans to begin privatizing the electricity companies which follows the ongoing privatization of the telecommunications company. The government is expected to continue calling for private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities for the swelling Saudi population. Shortages of water and rapid population growth will constrain government efforts to increase self-sufficiency in agricultural products.
Exports: $48 billion (f.o.b. 1999) Commodities: petroleum and petroleum products 90% Partners: Japan 17% US 15% South Korea 11% Singapore 8% India 4% France 4% (1998)
Imports: $28 billion (f.o.b. 1999) Commodities: machinery and equipment foodstuffs chemicals motor vehicles textiles Partners: US 21% UK 9% Japan 9% Germany 6% France 5% Italy 4% (1998)
Disputes international: large section of boundary with Yemen not defined; location and status of boundary with UAE is not final de facto boundary reflects 1974 agreement; Kuwaiti ownership of Qaruh and Umm al Maradim islands is disputed by Saudi Arabia; June 1999 agreement has furthered the goal of definitively establishing the border with Qatar