General background: In 1902 Abd 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.
Area comparative: Slightly
more than one-fifth the size of the US.
Climate:
Harsh, dry desert with great temperature extremes.
Terrain: Mostly uninhabited, sandy desert
Population: 23,513,330
Ethnic groups: Arab 90%, Afro-Asian 10%
Religions: Muslim 100%
Language: Arabic
Government type: Monarchy
Capital: Riyadh
Legal system: Based on Islamic law, several
secular codes have been introduced; commercial disputes
handled by special committees; has not accepted compulsory
ICJ jurisdiction.
Economic 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 reserves),
ranks as the largest exporter of petroleum, and plays
a leading role in OPEC. The petroleum sector accounts
for roughly 75% of budget revenues, 45% of GDP, and
90% of export earnings. About 25% 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. Riyadh expects to
have a budget deficit in 2002, in part because of
increased spending for education and other social
programs. The government in 1999 announced plans to
begin privatising the electricity companies, which
follows the ongoing privatisation 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.
Communication/Telephone system: Modern system.
Places of interest: Home to two of Islam's
holiest cities - Mecca and Medina.
Travel tips: Foreigners should be cautious
in Saudi Arabia; there have been several bombings
since November 2000, some of which were motivated
by anti-Western feeling and some by foreign nationals
seeking to control the illegal alcohol market. Demonstrations
and political gatherings are best avoided.
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