History of Saudi Arabia

The rise of Islam in the 620s CE, the subsequent religious importance of the Arabian cities of Makkah Makkah al-Mukarramah, and Medina (the two holiest places in Islam), and the discovery of large oil reserves in the early twentieth century, have given the rulers of this territory significant influence beyond the peninsula.

Early history

People of various cultures have lived in the peninsula over a span of more than 5,000 years. The Dilmun culture, along the Persian Gulf, was contemporaneous with the Sumerians and ancient Egyptians, and most of the empires of the ancient world traded with the states of the peninsula. Except for a few major cities and oases, the harsh climate historically prevented much settlement of the Arabian Peninsula. The earliest known events in Arabian history are migrations from the peninsula into neighbouring areas. About 3500 BC, semitic-speaking peoples of Arabian origin migrated into the valley of the Tigris and Euphrates rivers in Mesopotamia and became the Assyro-Babylonians (see Babylonia and Assyria).

 Islamic conquest

 Muslim history

The religion of Islam became predominant beginning in the 7th century. Prophet of Islam Muhammad began preaching at Makkah before migrating to Medina, from where he united the tribes of Arabia into a singular Arab Muslim religious polity. With Muhammad's death in 632, his companions unanimously agreed on nominating Abu Bakr as his successor. Abu Bakr's immediate task was to avenge a recent defeat by Byzantine (or Eastern Roman Empire) forces, although he first had to put down a rebellion by Arab tribes in an episode known as the Ridda wars, or "Wars of Apostasy".

The territory of the Caliphate in 750

His death in 634 resulted in the succession of Umar as the caliph, followed by Uthman ibn al-Affan and Ali ibn Abi Talib. These four are known as al-khulafā' ar-rāshidūn ("Rightly Guided Caliphs"). Under them, the territory under Muslim rule expanded deeply into Persian and Byzantine territories.

When Umar was assassinated in 644, the election of Uthman as successor was met with increasing opposition. In 656, Uthman was also killed, and Ali assumed the position of caliph. After fighting off opposition in the first civil war (the "First Fitna"), Ali was assassinated by Kharijites in 661. Following this, Mu'awiyah, who was governor of Levant, seized power and began the Umayyad dynasty.

These disputes over religious and political leadership would give rise to schism in the Muslim community. The majority accepted the legitimacy of all the four caliphs, and became known as Sunnis. A minority disagreed, and believed that Ali was the only rightful successor; they became known as the Shi'a.After Mu'awiyah's death in 680, conflict over succession broke out again in a civil war known as the "Second Fitna". Afterward, the Umayyad dynasty prevailed for seventy years, and was able to conquer the Maghrib and Al-Andalus (the Iberian Peninsula, former Visigothic Hispania) and the Narbonnese Gaul as well as expand Muslim territory into the Indian subcontinent.While the Muslim-Arab elite engaged in conquest, some devout Muslims, Zahid, began to question the piety of indulgence in a worldly life, emphasizing rather poverty, humility and avoidance of sin based on renunciation of bodily desires. Devout Muslim ascetic exemplars such as Hasan al-Basri would inspire a movement that would evolve into Sufism.

For the Umayyad aristocracy, Islam was viewed as a religion for Arabs only; the economy of the Umayyad empire was based on the assumption that a majority of non-Muslims (Dhimmis) would pay taxes to the minority of Muslim Arabs. A non-Arab who wanted to convert to Islam was supposed to first become a client of an Arab tribe. Even after conversion, these new Muslims (mawali) did not achieve social and economic equality with the Arabs. The descendants of Muhammad's uncle ‘Abbas ibn ‘Abd al-Muttalib rallied discontented mawali, poor Arabs, and some Shi'a against the Umayyads and overthrew them with the help of their propagandist and general Abu Muslim, inaugurating the Abbasid dynasty in 750. Under the Abbasids, Islamic civilization flourished in the "Islamic Golden Age", with its capital at the cosmopolitan city of Baghdad.

Despite its spiritual importance, in political terms Arabia soon became a peripheral region of the Islamic world, in which the most important states were based at various times in such far away cities as Cairo, Damascus, Delhi, Esfahān, and Istanbul. From the 10th century to the early 20th century Makkah and Medina were under the control of the Sharif of Makkah, but at most times the Sharif owed allegiance to the ruler of one of the major Islamic empires based elsewhere.

First Saudi State (1744-1818)

The First Saudi State was established in the year 1744 (1157 A.H.) when Sheikh Muhammad ibn Abd al Wahhab and Prince Muhammad ibn Saud formed an alliance to establish a religious & political sovereignty determined to cleanse the Arabian Peninsula of perceived heretical practices and deviations from orthodox Islam. It collapsed as a result of the Ottoman-Saudi war.

Second Saudi State (1824-1891)

Second Saudi State

After a rebuilding period following the ending of the First Saudi State, the House of Saud returned to power in the Second Saudi State in 1824. The state lasted until 1891 when it succumbed to the Al Rashid dynasty of Ha'il. Rashidi Arabia endured from 1891–1902, when Ibn Saud reconquered Riyadh, the first of a series of conquests leading to the creation of the modern nation state of Saudi Arabia in 1932.

1900s to 1940s

 Unification of Saudi Arabia

Third Saudi State (present day) (Saudi Arabia)

The Third Saudi state was founded by the late King Ibn Saud of Saudi Arabia. In 1902 Ibn Saud captured Riyadh, the Al-Saud dynasty's ancestral capital, from the rival Al-Rashid family. Continuing his conquests, Abdul Aziz subdued Al-Hasa, the rest of Nejd, and the Hejaz between 1913 and 1926.

Boundaries with Jordan, Iraq, and Kuwait were established by a series of treaties negotiated in the 1920s, with two "neutral zones" created, one with Iraq and the other with Kuwait. On January 8, 1926 Abdul Aziz Ibn Saud became the King of Hejaz. On January 29, 1927 he took the title King of Nejd (his previous Nejdi title was Sultan). By the Treaty of Jeddah, signed on May 20, 1927, the United Kingdom recognized the independence of Abdul Aziz's realm (then known as the Kingdom of Hejaz and Nejd). In 1932, these regions were unified as the Kingdom of Saudi Arabia. The discovery of oil on March 3, 1938 transformed the country. The country's southern boundary with Yemen was partially defined by the 1934 Treaty of Taif, which ended a brief border war between the two states.

1950s to 1960s

The founder of modern Saudi Arabia, King Abdul Aziz, converses with President Franklin Delano Roosevelt on board a ship returning from the Yalta Conference in 1945.

Approximate image showing the land exchanged between Jordan and Saudi Arabia.

King Abdul Aziz died in 1953 and was succeeded by his eldest son, Saud, who reigned for 11 years. In 1964, Saud was forced to abdicate in favour of his half-brother, Faisal, who had served as Foreign Minister.

Because of fiscal difficulties, King Saud had been persuaded in 1958 to delegate direct conduct of Saudi Government affairs to Faisal as Prime Minister; Saud briefly regained control of the government in 1960-62. In October 1962, Faisal outlined a broad reform program, stressing economic development. Proclaimed King in 1964 by senior royal family members and religious leaders, Faisal also continued to serve as Prime Minister. This practice has been followed by subsequent kings.

The mid-1960s saw external pressures generated by Saudi-Egyptian differences over Yemen. When civil war broke out in 1962 between Yemeni royalists and republicans, Egyptian forces entered Yemen to support the new republican government, while Saudi Arabia backed the royalists. Tensions subsided only after 1967, when Egypt withdrew its troops from Yemen.

In 1965 there was an exchange of territories between Saudi Arabia and Jordan in which Jordan gave up a relatively large area of inland desert in return for a small piece of seashore near Aqaba. Saudi forces participated in the Six-Day (Arab-Israeli) War of June 1967 on the Jordanian side, the government later provided annual subsidies to Egypt, Jordan, and Syria to support their economies.

The Saudi economy and infrastructure was developed with help from abroad, particularly from the United States, creating strong links between the two dissimilar countries, and considerable and problematic American presence in the Kingdom. The Saudi petroleum industry under the company of ARAMCO was built by American petroleum companies, U.S. construction companies such as Bechtel built much of the country's infrastruture, Trans World Airlines, built the Saudi passenger air service; the Ford Foundation modernized Saudi government; the U.S. Army Corps of Engineers built the country's television and broadcast facilities and oversaw the development of its defense industry.

 1970s

1970s in Saudi Arabia

The Saudi-Kuwaiti neutral zone was administratively partitioned in 1971, with each state continuing to share the petroleum resources of the former zone equally. During the 1973 Arab-Israeli war, Saudi Arabia participated in the Arab oil boycott of the United States and Netherlands. A member of the Organization of Petroleum Exporting Countries (OPEC), Saudi Arabia had joined other member countries in moderate oil price increases beginning in 1971. After the 1973 war, the price of oil rose substantially, dramatically increasing Saudi Arabia's wealth and political influence. The location and status of Saudi Arabia's boundary with the United Arab Emirates is not final; a de facto boundary reflects a 1974 agreement.

In 1975, King Faisal was assassinated by a nephew, who was executed after an extensive investigation concluded that he acted alone. Faisal was succeeded by his half-brother Khalid as King and Prime Minister; their half-brother Prince Fahd was named Crown Prince and First Deputy Prime Minister. King Khalid empowered Crown Prince Fahd to oversee many aspects of the government's international and domestic affairs. Economic development continued rapidly under King Khalid, and the kingdom assumed a more influential role in regional politics and international economic and financial matters.

During the 1970s and 1980s, more than 30,000 Saudi students per year went to the United States, while more than 200,000 Americans have lived and worked in the Kingdom since the discovery of oil.

 1980s

1980s in Saudi Arabia

A tentative agreement on the partition of the Saudi-Iraqi neutral zone was reached in 1981. The governments finalized the partition in 1983. King Khalid died in June 1982. Fahd became King and Prime Minister in a smooth transition. Another half-brother, Prince Abdullah, Commander of the Saudi National Guard, was named Crown Prince and First Deputy Prime Minister. King Fahd's brother, Prince Sultan, the Minister of Defense and Aviation, became Second Deputy Prime Minister. Under King Fahd, the Saudi economy adjusted to sharply lower oil revenues resulting from declining global oil prices. Saudi Arabia supported neutral shipping in the Persian Gulf during periods of the Iran-Iraq war and aided Iraq's war-strained economy. King Fahd played a major part in bringing about the August 1988 cease-fire between Iraq and Iran and in organizing and strengthening the Gulf Cooperation Council (GCC), a group of six Persian Gulf states dedicated to fostering regional economic cooperation and peaceful development.

1990s

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2009s

 1990s in Saudi Arabia

In August 1990, Saddam Hussein's forces invaded Kuwait. Iraqi troops began massing on the border of Kuwait and some feared that they were about to invade Saudi Arabia. King Fahd allowed American and Coalition soldiers to be stationed in Saudi Arabia to counter the Iraqi threat. Many Muslims were angered by this move, because it allowed foreign armies to be stationed in their holiest land.

King Fahd played a key role before and during the 1991 Persian Gulf War: 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. King Fahd's action also consolidated the coalition of forces against Iraq and helped define the tone of the operation as a multilateral effort to re-establish the sovereignty and territorial integrity of Kuwait.

Building #131 after the Khobar Towers bombing, which was the second major terrorist attack against Western troops in Saudi Arabia, 1996

Acting as a rallying point and personal spokesman for the coalition, King Fahd helped bring together his nation's GCC allies, Western allies, and Arab allies, as well as non-aligned nations from Africa and the emerging democracies of eastern Europe. He used his influence as Custodian of the Two Holy Mosques to persuade other Arab and Islamic nations to join the coalition. During the Persian Gulf War, Iraq fired Scud missiles into Saudi Arabia and even penetrated its northern border. These attacks were repelled, and Iraqi forces were expelled from Kuwait. American forces as well as some multinational contingents continued to occupy bases in the kingdom. However, American or foreign forces no longer occupy bases in the kingdom.

King Fahd suffered a stroke in November 1995. The foreign military presence caused militants to orchestrate attacks inside Saudi Arabia. In November 1995, a Saudi National Guard base was bombed, killing seven people. In June 1996, a truck bomb killed 19 American servicemen at the Khobar towers in Al-Khobar. These bombings caused the monarchy to focus on militancy inside their own kingdom, yet they denied there was much of a problem.

 2000s

2000s in Saudi Arabia

A June 2000 treaty further delineated portions of the boundary with Yemen. The border between Saudi Arabia and Qatar was resolved in March 2001. The border with Oman also is not demarcated. With the largest proven oil reserves in the world, structurally high oil prices due to increasing demand from the emerging industrial giants such as China and India, and the destruction of the neighbouring Iraqi military (which was a threat to Saudi hegemony), Saudi Arabia has become one of the economic powers in the Middle East. Saudi Arabia is increasing investments in infrastructure, science and technology which, it is hoped, will lead to further economic growth.

After the September 11, 2001 attacks, it became known that 15 of the 19 suspected hijackers were Saudi. Saudi Arabia became the focus of worldwide attention once again, as it was questioned whether the government was indeed cracking down on radicals. The Saudi government pledged their support to the War on Terror, and vowed to try to eliminate militant elements. However, in May 2003, an insurgency in Saudi Arabia began, believed to be conducted by al-Qaeda affiliates. This consisted mainly of attacks on foreigners in an attempt to expel them from the country and hurt the Saudi government. While the number of attacks dropped significantly in 2005, they exposed the vulnerability of the country. Concern was also voiced over the large number of Saudis fighting American soldiers in Iraq following the 2003 invasion.

King Fahd died in July 2005. He was succeeded by his brother Crown Prince Abdullah, who had handled most of the day-to-day operations of the government.

(source:wikipedia)

Economy of Saudi Arabia

Saudi Arabia has an oil-based economy with strong government control over major economic activities. Saudi Arabia possesses 25%  of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC.

Saudi Arabia's economy is a centrally planned economy. Private enterprises do exist, they are however regulated by the Saudi government.

Economic overview

The petroleum sector accounts for roughly 45% of budget revenues, 55% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector. Roughly five and a half million foreign workers play an important role in the Saudi economy, for example, in the oil and service sectors. The government is encouraging private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities for the swelling Saudi population. The government has begun to permit private sector and foreign investor participation in the power generation and telecom sectors. As part of its effort to attract foreign investment and diversify the economy, Saudi Arabia acceded to the WTO in 2005 after many years of negotiations. With high oil revenues enabling the government to post large budget surpluses, Riyadh has been able to substantially boost spending on job training and education, infrastructure development, and government salaries.

Macro-economic trend

Current GDP per capita of Saudi Arabia soared by a world record-breaking 1,858% in the Seventies riding on the back of the global oil boom. However, this bubble was unsustainable and consequently the GDP per capita shrank by 58% in the Eighties. However successful diversification efforts helped register a growth of 20% in the Nineties.

This is a chart of trend of gross domestic product of Saudi Arabia at market prices estimated by the International Monetary Fund with figures in millions of Saudi Arabian Riyals.

Year Gross Domestic Product US Dollar Exchange Inflation Index

(2000=100) Per Capita Income

(as % of USA)

1980 546,602 3.59 Saudi Arabian Riyals 95 43.84

1985 376,318 3.62 Saudi Arabian Riyals 92 49.33

1990 437,334 3.74 Saudi Arabian Riyals 91 33.13

1995 533,504 3.74 Saudi Arabian Riyals 101 28.29

2000 706,657 3.74 Saudi Arabian Riyals 100 26.50

2005 1,152,600 3.74 Saudi Arabian Riyals 100 32.53

For purchasing power parity comparisons, the US Dollar is exchanged at 3.41 Saudi Arabian Riyals only. Mean wages were $14.74 per manhour in 2009.

As of August 2009 it was reported that Saudi Arabia is the strongest Arab economy according to World Bank.

Saudi oil reserves are the largest in the world, and Saudi Arabia is the world's leading oil producer and exporter. Oil accounts for more than 90% of the country's exports and nearly 75% of government revenues. Proven reserves are estimated to be 260 billion barrels (41 km³), about one-quarter of world oil reserves.

More than 95% of all Saudi oil is produced on behalf of the Saudi Government by the parastatal giant Saudi Aramco. In June 1993, Saudi Aramco absorbed the state marketing and refining company (SAMAREC), becoming the world's largest fully integrated oil company. Most Saudi oil exports move by tanker from Persian Gulf terminals at Ras Tanura and Ju'aymah. The remaining oil exports are transported via the east-west pipeline across the kingdom to the Red Sea port of Yanbu. A major new gas initiative promises to bring significant investment by U.S. and European oil companies to develop nonassociated gas fields in three separate parts of Saudi Arabia. Following final technical agreements with concession awardees in December 2001, development should begin in 2002.

Due to a sharp rise in petroleum revenues in 1974 following the 1973 Arab-Israeli war, Saudi Arabia became one of the fastest-growing economies in the world. It enjoyed a substantial surplus in its overall trade with other countries; imports increased rapidly; and ample government revenues were available for development, defense, and aid to other Arab and Islamic countries.

But higher oil prices led to development of more oil fields around the world and reduced global consumption. The result, beginning in the mid-1980s, was a worldwide oil glut, which introduced an element of planning uncertainty for the first time in a decade. Saudi oil production, which had increased to almost 10 million barrels (1.6 million m³) per day during 1980-81, dropped to about 2 million barrels/day (300,000 m³/day) in 1985. Budgetary deficits developed, and the government drew down its foreign assets. Responding to financial pressures, Saudi Arabia gave up its role as the "swing producer" within OPEC in the summer of 1985 and accepted a production quota. Since then, Saudi oil policy has been guided by a desire to maintain market and quota shares.

However, beginning in late 1997, Saudi Arabia again faced the challenge of low oil prices. Due to a combination of factors--the East Asian economic crises, a warm winter in the West caused by El Niño, and an increase in non-OPEC oil production--demand for oil slowed and pulled oil prices down by more than one-third.

Saudi Arabia was a key player in coordinating the successful 1999 campaign of OPEC and other oil-producing countries to raise the price of oil to its highest level since the Gulf War by managing production and supply of petroleum. That same year, Saudi Arabia established the Supreme Economic Council to formulate and better coordinate economic development policies in order to accelerate institutional and industrial reform.

Saudi Arabia has announced plans to invest about $46 billion in three of the world’s largest and most ambitious petrochemical projects. These include the $27 billion Ras Tanura integrated refinery and petrochemical project, the $9 billion Saudi Kayan[dead link] petrochemical complex at Jubail Industrial City, and the $10 billion Petro Rabigh refinery upgrade project. Together, the three projects will employ more than 150,000 technicians and engineers working around the clock. Upon completion in 2015-16, the Ras Tanura integrated refinery and petrochemicals project will become the world’s largest petrochemical facility of its kind with a combined production capacity of 11 million tons per year of different petrochemical and chemical products. The products will include ethylene, propylene, aromatics, polyethylene, ethylene oxide, chlorine derivatives and glycol.

SABIC

The Saudi Arabian Basic Industries Corporation SABIC was established by a royal decree in 1976 to produce chemicals, polymers and fertilizers. In 2008, SABIC was Asia's largest (in terms of market capitalization) and most profitable publicly listed non-oil company, the world's 4th largest petrochemical company, ranked 186th as world's largest corporation on the Fortune Global 500 for 2009, the second largest producer of ethylene glycol and methanol in the world, the third largest producer of polyethylene and overall the fourth largest producer of polypropylene and polyolefin. Standard and Poor's and Fitch Ratings claimed SABIC to be the world's largest producer of polymers and the Persian Gulf region's largest steel producer for 2005 and assigned SABIC 'A' corporate credit rating. In 2008, Fortune 500 ranking records SABIC revenues at $40.2 billion, profits at $5.8 billion and assets standing at $72.4 billion.

Expansion operations and investments are projected to amount to USD20 billion in 2007 and USD70 billion until 2020. The overall total production in 1985 was 6.3 million metric tons (mmt); by the end of 2008 it had reached 56 mmt and by 2020, SABIC intends to produce over 135 mmt per year.[7] SABIC established in June 2006 "SABIC Sukuk Company" to issue Islamic bonds (Sukuk) that are estimated to range between SAR1 billion (USD266.67 million) and SAR3 billion (USD800 million).

Net profits of SABIC in 2008 touched SR 22 billion (US$ 5.86 billion), while total assets stood at SR 272 billion (US$ 72.5 billion) at the end of 2008 and the value of current assets at the end of 2008 stood at SR 95 billion (US$ 25 billion).

Maaden (company)

Ma'aden was formed as a Saudi joint stock company on 23 March 1997 for the purpose of facilitating the development of Saudi Arabia’s mineral resources. Ma'aden's activities have focused on its active gold business which has grown in recent years to include the operation of five gold mines: Mahd Ad Dahab, Al Hajar, Sukhaybarat, Bulghah, and Al Amar. Ma'aden is now expanding its activities beyond its gold business with the development of its Phosphate Project, Aluminium Project, and Other Projects. In addition, since its formation, Ma'aden (through the Ministry of Petroleum & Mineral Resources) has collaborated with the Government and local legislators to develop a regulatory framework for the governance of the mining industry.

On 20 December 2009, Maaden signed an agreement with US aluminium giant Alcoa to build a $10.8 billion aluminium complex. Under the agreement, the two firms will build a 1.8 million tonnes per year aluminium refinery and a 740,000 million tonnes per year smelter in Ras Azzour. The smelter is slated to start production in 2013 while the refinery would come online in 2014.

Trade

Saudi Arabian exports in 2006

In recent years, Saudi Arabia sought to join the World Trade Organization. Negotiations have focused on the degree to which Saudi Arabia is willing to increase market access to foreign goods and services and the timeframe for becoming fully compliant with World Trade Organization obligations. In April 2000, the government established the Saudi Arabian General Investment Authority to encourage foreign direct investment in Saudi Arabia. Saudi Arabia maintains a negative list of sectors in which foreign investment is prohibited, but the government plans to open some closed sectors such as telecommunications, insurance, and power transmission/distribution over time. As of November 2005 , Saudi Arabia was officially approved to enter World Trade Organization.

Doing Business

The Kingdom of Saudi Arabia has been rated as the 13th most economically competitive country in the world, according to the International Finance Corporation (IFC)-World Bank annual "Doing Business" report issued for 2010. The report highlighted the rapid rate of economic growth among Middle Eastern countries, specifically Saudi Arabia, as a result of economic sector reform. For the fifth consecutive year, Saudi Arabia was ranked as the best place to do business in the entire Middle East and the Arab World. Since 2004, the Kingdom has advanced its overall Doing Business rankings, from 67th to 13th. A number of policy reforms to promote entrepreneurship are underway.

Saudi Arabian companies dominate 2009's "MEED 100", with companies listed on the Tadawul accounting for 29 out of the region’s 100 biggest publicly quoted companies ranked by market capitalisation. Just three of the 20 companies that have dropped out of the top 100 over the past year are listed on the Saudi stock exchange.

Diversification

As of 2007, non-oil manufacturing contributed 10% to Saudi Arabian GDP and less than 6% of total employment.

Through 5-year development plans, the government has sought to allocate its petroleum income to transform its relatively undeveloped, oil-based economy into that of a modern industrial state while maintaining the kingdom's traditional Islamic values and customs. Although economic planners have not achieved all their goals, the economy has progressed rapidly. Oil wealth has increased the standard of living of most Saudis. However, significant population growth has strained the government's ability to finance further improvements in the country's standard of living. Heavy dependence on petroleum revenue continues, but industry and agriculture now account for a larger share of economic activity. The mismatch between the job skills of Saudi graduates and the needs of the private job market at all levels remains the principal obstacle to economic diversification and development; about 4.6 million non-Saudis are employed in the economy.

Saudi Arabia's first two development plans, covering the 1970s, emphasized infrastructure. The results were impressive — the total length of paved highways tripled, power generation increased by a multiple of 28, and the capacity of the seaports grew tenfold. For the third plan (1980-85), the emphasis changed. Spending on infrastructure declined, but it rose markedly on education, health, and social services. The share for diversifying and expanding productive sectors of the economy (primarily industry) did not rise as planned, but the two industrial cities of Jubail and Yanbu--built around the use of the country's oil and gas to produce steel, petrochemicals, fertilizer, and refined oil products--were largely completed.

In the fourth plan (1985-90), the country's basic infrastructure was viewed as largely complete, but education and training remained areas of concern. Private enterprise was encouraged, and foreign investment in the form of joint ventures with Saudi public and private companies was welcomed. The private sector became more important, rising to 70% of non-oil GDP by 1987. While still concentrated in trade and commerce, private investment increased in industry, agriculture, banking, and construction companies. These private investments were supported by generous government financing and incentive programs. The objective was for the private sector to have 70% to 90% ownership in most joint venture enterprises.

The fifth plan (1990-95) emphasized consolidation of the country's defenses; improved and more efficient government social services; regional development; and, most importantly, creating greater private-sector employment opportunities for Saudis by reducing the number of foreign workers.

The sixth plan (1996-2000) focused on lowering the cost of government services without cutting them and sought to expand educational training programs. The plan called for reducing the kingdom's dependence on the petroleum sector by diversifying economic activity, particularly in the private sector, with special emphasis on industry and agriculture. It also continued the effort to "Saudiize" the labor force.

The seventh plan (2000-2004) focuses more on economic diversification and a greater role of the private sector in the Saudi economy. For the period 2000-2004, the Saudi Government aims at an average GDP growth rate of 3.16% each year, with projected growths of 5.04% for the private sector and 4.01% for the non-oil sector. The government also has set a target of creating 817,300 new jobs for Saudi nationals.

Advertising expenditures have reached new peaks due to emphasis on value-added manufacturing.

 Investment

Saudi Arabia has one stock exchange the Tadawul and its financial markets are regulated by the Capital Market Authority (Saudi Arabia). The stock market capitalisation of listed companies in Saudi Arabia was valued at $646 billion in 2005 by the World Bank.

ICT Services

Saudi Arabia is currently enjoying a massive boom in its personal computer industry since the deregulation of 2002. PC per capita has exploded to nearly 43% of the population in 2005 from just 13% in 2002 leapfrogging over the rest of West Asia.

The electrical and electronics market was estimated to be around $3.5 billion in 2004.

The e-commerce market was estimated at just over $1 billion in 2001.

(source:wikipedia)

Kingdom of Saudi Arabia

Kingdom of Saudi Arabiah  المملكة العربية السعودية‎), commonly known as Saudi Arabia, occasionally spelled Saʿudi Arabia, is the largest Arab country of the Middle East. It is bordered by Jordan and Iraq on the north and northeast, Kuwait, Qatar and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south. The Arabian Gulf lies to the northeast and the Red Sea to its west. It has an estimated population of 28 million, and its size is approximately 2,149,690 square kilometres (830,000 sq mi). The kingdom is sometimes called "The Land of the Two Holy Mosques" in reference to Mecca and Medina, the two holiest places in Islam. The two mosques are Masjid al-Haram (in Mecca) and Masjid Al-Nabawi (in Medina). The current kingdom was founded by Abdul-Aziz bin Saud, whose efforts began in 1902 when he captured the Al-Saud’s ancestral home of Riyadh, and culminated in 1932 with the proclamation and recognition of the Kingdom of Saudi Arabia, though its national origins go back as far as 1744 with the establishment of the First Saudi State. Saudi Arabia's government takes the form of an Islamic absolute monarchy. Human rights groups such as Amnesty International and Human Rights Watch have repeatedly expressed concern about the state of human rights in Saudi Arabia.

Saudi Arabia has the world's largest oil reserves and is the world's largest oil exporter. Oil accounts for more than 90% of exports and nearly 75% of government revenues, facilitating the creation of a welfare state, which the government has found difficult to fund during periods of low oil prices.

History

Main article: History of Saudi Arabia

 Pre-Islamic Arabia and Ancient history

Although the region in which the country stands today has an ancient history, the emergence of the Saudi dynasty began in central Arabia in 1744. That year, Muhammad ibn Saud, the ruler of the town of Ad-Dir'iyyah near Riyadh, joined forces with a well-known Islamic scholar and Imam, Muhammad ibn Abd-al-Wahhab, to create a new political and religious entity. Both persons found they had common interests, mainly to see all the Arabs of the peninsula brought back to "true" Islam. This alliance formed in the 18th century remains the basis of Saudi Arabian dynastic rule today, and over the next 150 years, the fortunes of the Saud family rose and fell several times as Saudi rulers contended with Egypt, the Ottoman Empire, and other Arabian families for control of the peninsula (see First Saudi State and Second Saudi State). The third and current Saudi state was founded in the early 20th century by King Abdul Aziz Al Saud (known internationally as Abdul Aziz Ibn Saud).

First Saudi State (1744–1818)

First Saudi State (1744–1818)

 First Saudi State

The first Saudi State was established in 1744 when Muhammad ibn Abd-al-Wahhab settled in Diriyah and Prince Muhammed Ibn Saud agreed to support and espouse his cause in the hope of cleansing Islamic practices of heresy. The House of Saud and its allies rose to become the dominant state in Arabia controlling most of the present-day territory of Saudi Arabia, including the Islamic holy cities of Mecca and Medina. Concerned at the growing power of the Saudis, the Ottoman Sultan instructed Mohammed Ali Pasha to reconquer the area again. Ali sent his sons Tusun Pasha and Ibrahim Pasha who were successful in routing the Saudi forces in 1818, eventually weakening the hold of Al Saud. Alshuraim was one of the largest families that supported king Abdulaziz and his family.

Second Saudi State (1824–1891)

Second Saudi State (1824–1891)

 Second Saudi State

After a rebuilding period following the ending of the First Saudi State, the House of Saud returned to power in the Second Saudi State in 1824. The state lasted until 1891 when it succumbed to the Al Rashid of Ha'il.

1891 to present day

 Unification of Saudi Arabia

Third Saudi State (present day) (Saudi Arabia)

Rashidi Arabia endured from 1891 to 1902, when Ibn Saud reconquered Riyadh, the first of a series of conquests leading to the creation of the modern nation state of Saudi Arabia in 1932. The Third Saudi state was founded by the late King Ibn Saud of Saudi Arabia. In 1902 Ibn Saud captured Riyadh, the Al-Saud dynasty's ancestral capital, from the rival Al-Rashid family. Continuing his conquests, Abdul Aziz subdued Al-Hasa, the rest of Nejd, and the Hejaz between 1913 and 1926. Boundaries with Jordan, Iraq, and Kuwait were established by a series of treaties negotiated in the 1920s, with two "neutral zones" created, one with Iraq and the other with Kuwait. On January 8, 1926 Hussain Ibn Ali became the King of Sharqiya. On January 27, 1927 he took the title King of Nejd (his previous Nejdi title was Sultan). By the Treaty of Jeddah, signed on May 20, 1927, the United Kingdom recognized the independence of Abdul Aziz's realm (then known as the Kingdom of Hejaz and Nejd). In 1932, these regions were unified as the Kingdom of Saudi Arabia. The discovery of oil on March 3, 1938 transformed the country. The country's southern boundary with Yemen was partially defined by the 1934 Treaty of Taif, which ended a brief border war between the two states.

Abdul Aziz's military and political successes were not mirrored economically until vast reserves of oil were discovered in March 1938. Development programs, which were delayed due to the onset of the Second World War in 1939, began in earnest in 1946 and by 1949 production was in full swing. Oil has provided Saudi Arabia with economic prosperity and a great deal of political leverage in the international community. Prior to his death in 1953, Abdul Aziz, aware of the difficulties facing other regional absolute rulers reliant on extended family networks, attempted to regulate the succession.

Saud succeeded to the throne on his father's death in 1953. However, by the early 1960s the Kingdom was in jeopardy due to Saud's economic mismanagement and failure to deal effectively with a regional challenge from Egyptian president Gamal Abdel Nasser. As a consequence, Saud was deposed in favor of Faisal in 1964. Intra-family rivalry, echoed by increasing complications from the 1973 oil crisis, was one of the factors that led to the assassination of Faisal by his nephew, Prince Faisal bin Musa'id, in 1975. He was succeeded by King Khalid until 1982 and then by King Fahd. When Fahd died in 2005, his half-brother, Abdullah, ascended to the throne.

Geography

 Geography of Saudi Arabia

View of the Tuwaiq escarpment from the west.

The Kingdom occupies about 80 percent of the Arabian peninsula. In 2000 Saudi Arabia and Yemen signed an agreement to settle their long-running border dispute. A significant length of the country's southern borders with the United Arab Emirates and Oman are not precisely defined or marked, so the exact size of the country remains unknown. The Saudi government's estimate is 2,217,949 km2 (856,355 sq mi). Other reputable estimates vary between 1,960,582 km2 (756,985 sq mi) and 2,240,000 km2 (864,869 sq mi). The kingdom is commonly listed as the world's 14th largest state.

Saudi Arabia's geography is varied. From the humid western coastal region (Tihamah) on the Red Sea, the land rises from sea level to a peninsula-long mountain range (Jabal al-Hejaz) beyond which lies the plateau of Nejd in the center. The southwestern 'Asir region has mountains as high as 3,000 m (9,843 ft) and is known for having the greenest and freshest climate in all of the country, one that attracts many Saudis to resorts such as Abha in the summer months. The east is primarily rocky or sandy lowland continuing to the shores of the Persian Gulf. The geographically hostile Rub' al Khali ("Empty Quarter") desert along the country's imprecisely defined southern borders contains almost no life.

Mostly uninhabited, much of the nation's landmass consists of desert and semi-arid regions, with a dwindling traditional Bedouin population. In these parts of the country, vegetation is limited to weeds, xerophytic herbs and shrubs. Less than two percent of the kingdom's total area is arable land. Population centers are mainly located along the eastern and western coasts and densely populated interior oases such as Hofuf and Buraydah. In some extended areas, primarily the Rub' al-Khali and the Arabian Desert, there is no population whatsoever, although the petroleum industry has constructed planned communities there. Saudi Arabia has no permanent year-round rivers or lakes; however, its coastline extends for 2,640 km (1,640 mi) and, along the Red Sea, harbors world-class coral reefs, including the Gulf of Aqaba.

Fauna

Native animals include the ibex, wildcats, baboons, wolves, and hyenas in the mountainous highlands. Small birds are found in the oases. The coastal area on the Red Sea, with its coral reefs, has a rich marine life.

Politics

 Politics of Saudi Arabia

 Government of Saudi Arabia

King Abdullah of Saudi Arabia

The central institution of the Saudi Arabian government is the Saudi monarchy. The Basic Law of Government adopted in 1992 declared that Saudi Arabia is a monarchy ruled by the sons and grandsons of the first king, Abd Al Aziz Al Saud. It proclaims that the Qur'an is the constitution of the country, which is governed on the basis of the Sharia (Islamic Law). According to The Economist's Democracy Index, the Saudi government is the seventh most authoritarian regime from among the 167 countries rated.

There are no recognized political parties or national elections, except for one local election, which was held in 2005, when participation was reserved for male citizens only. The king's powers are theoretically limited within the bounds of Shari'a and other Saudi traditions. He also must retain a consensus of the Saudi royal family, religious leaders (ulema), and other important elements in Saudi society. The Saudi government spreads Islam by funding construction of mosques and Qur'an schools around the world. The leading members of the royal family choose the king from among themselves with the subsequent approval of the ulema.

Saudi kings have gradually developed a central government. Since 1953, the Council of Ministers, appointed by the king, has advised on the formulation of general policy and directed the activities of the growing bureaucracy. This council consists of a prime minister, the first prime minister and twenty ministers. Legislation is by resolution of the Council of Ministers, ratified by royal decree, and must be compatible with the Shari'a. A 150-member Consultative Assembly, appointed by the King, has limited legislative rights. Justice is administered according to the Shari'a by a system of religious courts whose judges are appointed by the king on the recommendation of the Supreme Judicial Council, composed of twelve senior jurists. Independence of the judiciary is protected by law. The king acts as the highest court of appeal and has the power to pardon. Access to high officials (usually at a majlis; a public audience) and the right to petition them directly are well-established traditions.

The combination of relatively high oil prices and exports led to a revenues windfall for Saudi Arabia during 2004 and early 2005. For 2004 as a whole, Saudi Arabia earned about $116 billion in net oil export revenues, up 35% from 2003 revenue levels.

For fiscal year 2004, Saudi Arabia originally had been expecting a budget deficit. However, this was based on an extremely conservative price assumption of $19 per barrel for Saudi oil and an assumed production of 7.7 Mbbl/d (1,220,000 m3/d). Both of these estimates turned out to be far below actual levels. As a result, as of mid-December 2004, the Saudi Finance Ministry was expecting a huge budget surplus of $26.1 billion, on budget revenues of $104.8 billion (nearly double the country's original estimate) and expenditures of $78.6 billion (28 percent above the approved budget levels). This surplus is being used for several purposes, including: paying down the Kingdom's public debt (to $164 billion from $176 billion at the start of 2004); extra spending on education and development projects; increased security expenditures (possibly an additional $2.5 billion dollars in 2004; see below) due to threats from terrorists; and higher payments to Saudi citizens through subsidies (for housing, education, health care, etc.).

Law

Human rights in Saudi Arabia

The Basic Law, in 1992, declared that Saudi Arabia is a monarchy ruled by the progeny of King Abdul Aziz Al Saud. It also declared the Qur'an as the constitution of the country, governed on the basis of Islamic law.

Criminal cases are tried under Sharia courts in the country. These courts exercise authority over the entire population. Cases involving small penalties are tried in Shari'a summary courts. More serious crimes are adjudicated in Shari'a courts of common pleas. Courts of appeal handle appeals from Shari'a courts.

Civil cases may also be tried under Sharia courts with one exception: Shiites may try such cases in their own courts. Other civil proceedings, including those involving claims against the Government and enforcement of foreign judgments, are held before specialized administrative tribunals, such as the Commission for the Settlement of Labor Disputes and the Board of Grievances.

Main sources of Saudi law are Hanbali fiqh as set out in a number of specified scholarly treatises by authoritative jurists, other schools of law, state regulations and royal decrees (where these are relevant), and custom and practice.

The Saudi legal system prescribes capital punishment or corporal punishment.Theft is punishable by amputation of the hand, although it is rarely prescribed for a first offense. The courts may impose other harsh punishments, such as floggings, for less serious crimes against public morality such as drunkenness. Murder, accidental death and bodily harm are open to punishment from the victim's family. Retribution may be sought in kind or through blood money. The blood money payable for a woman's accidental death is half as much as that for a Muslim male. This is mainly because Islamic law requires men to be providers for their families, and therefore to earn more money in their lifetimes. The blood money for a man would be expected to sustain his family, at least for a short time.

Money payable for the death of a Christian or Jewish male is also half that for a Muslim male; all others (e.g. Hindus, Buddhists, and Sikhs) are valued at 1/16th.

Slavery was abolished in 1962.

The freedom of women is seriously restricted in Saudi Arabia. Women are not allowed to travel without the permission of their closest male relative, who may be a son or a younger brother. Women who are divorced, however, are free to make whatever choice they want and this includes choosing a partner for future marriage. Saudi Arabia is the only country in the world where women are banned from driving in major cities and towns, although they may drive in small towns and villages or in private housing compounds—some of which extend to many square miles. The Saudi Shura Council recommended in 2008 that the ban be relaxed, allowing young women to drive subject to some restrictive conditions.

The Government views its interpretation of Islamic law as its sole source of guidance on human rights. In 2000 the Government approved the October legislation, which the Government claimed would address some of its obligations under the Convention Against Torture or Other Cruel, Inhuman, or Degrading Treatment or Punishment.

"The state protects human rights in accordance with the Islamic Shari'ah."

– Basic Law, Chapter 5, Article 26.

The first independent human rights organization, the National Society for Human Rights was established in 2004. The Saudi Government is an active censor of Internet communication within its borders. A Saudi blogger, Fouad al-Farhan, was jailed for five months in solitary confinement in December, 2007, without charges, after criticizing Saudi religious, business and media figures.

Provinces

Main articles: Provinces of Saudi Arabia and Governorates of Saudi Arabia

Saudi Arabia is divided into 13 provinces (manatiq, – singular mintaqah). The provinces are further divided into governorates.

Province Capital L. Map

Al Bahah Al Bahah city

Tabuk,Bahah,Jawf,Madinah,Makkah,Jizan,Ha'il,Northern,Borders,Asir,Qasim,Riyadh,

Najran,Eastern Province,Northern Border Arar,

Al Jawf Sakaka city,Al Madinah Medina,Al Qasim Buraidah,Ha'il Ha'il city,Asir Abha,

Eastern Province Dammam,

Al Riyadh Riyadh city,Tabuk Tabuk city,Najran Najran city,

Makkah Mecca,Jizan Jizan city,

Cities and towns in Saudi Arabia

Largest Cities by Population

(2009)

mill.

Riyadh 6.5

Jeddah 3.9

Mecca 1.8

Medina 1.6 Riyadh Jeddah Mecca

Al-Hasa 1.4

Dammam 1.3

Tabuk 0.8

Buraidah 0.7

Khamis Mushait 0.6

Abha 0.5

Al-Khubar 0.4 Medina Dammam Al-Khobar

Economy

Main article: Economy of Saudi Arabia

Aramco, the Saudi national oil company, whose main offices are in Dhahran

Saudi Arabia is the largest exporter of petroleum in the world

Saudi Arabia's command economy is petroleum-based; roughly 75% of budget revenues and 90% of export earnings come from the oil industry. The oil industry comprises about 45% of Saudi Arabia's gross domestic product, compared with 40% from the private sector (see below). Saudi Arabia officially has about 260 billion barrels (4.1×1010 m3) of oil reserves, comprising about one-fifth of the world's proven total petroleum reserves.

The government is attempting to promote growth in the private sector by privatizing industries such as power and telecommunications. Saudi Arabia announced plans to begin privatizing the electricity companies in 1999, which followed the ongoing privatization of the telecommunications company. Shortages of water and rapid population growth may constrain government efforts to increase self-sufficiency in agricultural products.

In the 1990s, Saudi Arabia experienced a significant contraction of oil revenues combined with a high rate of population growth. Per capita income fell from a high of $11,700 at the height of the oil boom in 1981 to $6,300 in 1998.[28] Recent oil price increases have helped boost per capita GDP to $17,000 in 2007 dollars, or about $7,400 adjusted for inflation.

Oil price increases of 2008-2009 have triggered a second oil boom, pushing Saudi Arabia's budget surplus to $28 billion (110SR billion) in 2005. Tadawul (the Saudi stock market index) finished 2004 with a massive 76.23% to close at 4437.58 points. Market capitalization was up 110.14% from a year earlier to stand at $157.3 billion (589.93SR billion), which makes it the biggest stock market in the Middle East.‏

OPEC (the Organization of Petroleum Exporting Countries) limits its members' oil production based on their "proven reserves." The higher their reserves, the more OPEC allows them to produce. Saudi Arabia's published reserves have shown little change since 1980, with the main exception being an increase of about 100 billion barrels (1.6×1010 m3) between 1987 and 1988. Matthew Simmons has suggested that Saudi Arabia is greatly exaggerating its reserves and may soon show production declines (see peak oil).

To diversify the economy, Saudi Arabia launched a new city on the western coast with investments exceeding $26.6 billion. The city, which is named "King Abdullah Economic City", will be built near al-Rabegh industrial city north to Jeddah. The new city, where construction work started in December 2005, includes a port which is the largest port of the kingdom. Extending along a coastline of 35 km, the city will also include petrochemical, pharmaceutical, tourism, finance and education and research areas. Saudi Arabia officially became a World Trade Organization member in December 2005.

Development

Saudi Arabia is one of only a few fast-growing countries in the world with a high per capita income of $20,700 (2007). Saudi Arabia will be launching six "economic cities" (e.g. King Abdullah Economic City) which are planned to be completed by 2020. These six new industrialized cities are intended to diversify the economy of Saudi Arabia, and are expected to increase the per capita income. The King of Saudi Arabia has announced that the per capita income is forecast, to rise from $15,000 in 2006 to $33,500 in 2020. The cities will be spread around Saudi Arabia to promote diversification for each region and their economy, and the cities are projected to contribute $150 billion to the GDP.

However the urban areas of Riyadh and Jeddah are expected to contribute $287 billion dollars by the year 2020.

Foreign labour

Despite the government's efforts to promote Saudization, the country draws a significant portion of its labour force from foreign countries, especially from South and Southeast Asia (notably India, Pakistan, Bangladesh, Indonesia, the Philippines, Nepal, Sri Lanka), East Asia, East Africa and from other Middle Eastern countries. There are also some people from North America, South America, and Europe. Hundreds of thousands of low-skilled workers and skilled workers from regions of the developing world migrate to Saudi Arabia, sometimes only for a short period of time, to work. Although exact figures are not known, skilled experts in the banking and services professions seek work in the kingdom.

Demographics

 Demographics of Saudi Arabia

Bedouin and Tribes of Arabia

Demographics of Saudi Arabia, FAO data, 2005; Number of inhabitants in thousands

Saudi Arabia population density (person per Km2).

Saudi Arabia's population as of July 2010 is estimated to be about 27,136,977, including an estimated 8.5 million resident foreigners. Until the 1960s, a majority of the population was nomadic; but presently more than 95% of the population is settled, due to rapid economic and urban growth. As recently as the early 1960s, the Saudi Arabia’s slave population was estimated at 300,000. Slavery was officially abolished in 1962. The birth rate is 29.56 births per 1,000 people and the death rate is 2.62 deaths per 1,000 people. Some cities and oases have densities of more than 1,000 people per square kilometer (2,600/sq mi).

About 31% of the population is made up of foreign nationals living in Saudi Arabia. A large portion of the expatriate population is South Asian or of South Asian ancestry, including Indians, Pakistanis, and Bangladeshis. In addition, there are some citizens of Asian, Northeast African, Russians,Turks, Iranians, North Africans and Sub-Saharan ancestry are in Hijaz (Jeddah, Makkah and Madina). Many Arabs from nearby countries are employed in the kingdom. There are over eight million migrants from countries all around the world (including non-Muslims):[40] Indian: 1.3 million, Pakistani: 900,000, Bangladeshi: 400,000, Filipino: 500,000, Egyptian: 900,000, Yemeni: 800,000, Indonesian: 250,000, Sri Lankan: 350,000, Sudanese: 250,000, Syrian: 100,000 and Turkish: 80,000. There are around 100,000 Westerners in Saudi Arabia, most of whom live in compounds or gated communities. Although Arabic is the official language, English is the lingua franca of the country and is very widely spoken by residents.

In the 1970s and 1980s, there was also a significant community of South Koreans, numbering in the hundreds of thousands, but most have since returned home. Saudi Arabia expelled 800,000 Yemenis in 1990 and 1991 to punish Yemen for its opposition to the Gulf War against Iraq. An estimated 240,000 Palestinians are living in Saudi Arabia. They are not allowed to hold or even apply for Saudi citizenship, because of Arab League instructions barring the Arab states from granting them citizenship. Palestinians are the sole foreign group that cannot benefit from a 2004 law passed by Saudi Arabia's Council of Ministers, which entitles expatriates of all nationalities who have resided in the kingdom for ten years to apply for citizenship with priority being given to holders of degrees in various scientific fields. The Articles 12.4 and 14.1 of the Executive Regulation of Saudi Citizenship System can be interpreted as requiring applicants to be Muslim.

Culture

Culture of Saudi Arabia

Street view of Mecca

A recreation park in Riyadh

Arabian Oud an important instrument in the country's music tradition.

Saudi Arabian culture mainly revolves around both Islamic and tribal values. Islam's two holiest sites, Mecca and Medina, are located in the country. Five times every day, Muslims are called to prayer from the minarets of mosques which are scattered around the country. The weekend begins on Thursday due to Friday being the holiest day for Muslims. Most Muslim countries have a Thursday-Friday or Friday-Saturday weekend.

Saudi Arabia's cultural heritage is celebrated at the annual Jenadriyah cultural festival.

Music and dance

Music of Saudi Arabia

One of Saudi Arabia's most compelling folk rituals is the Al Ardha, the country's national dance. This sword dance is based on ancient Bedouin traditions: drummers beat out a rhythm and a poet chants verses while sword-carrying men dance shoulder to shoulder. Al-sihba folk music, from the Hejaz, has its origins in al-Andalus. In Mecca, Medina and Jeddah, dance and song incorporate the sound of the mizmar, an oboe-like woodwind instrument in the performance of the Mizmar dance. The drum is also an important instrument according to traditional and tribal customs. Samri is a popular traditional form of music and dance in which poetry is sung especially in the Eastern Region of Saudi Arabia. Saudi Arabian Musical tradition depends heavily on the modern Arabian oud.

Al Ardha (Arabic: العرضة‎) is a type of folkloric dance performed by the Bedouin tribes of the Arabian peninsula, It was tradition only performed before going to war, but nowadays is performed at celebrations or cultural events, such as the Jenadriyah festival. The dance, which is performed by men carrying swords or canes, is accompanied by drums and spoken verse.

Mizmar (Arabic: مزمار‎) is the name of a folkloric dance native to the Hejaz region of Saudi Arabia. The dance involves moving while twirling a bamboo cane (tool)cane, to the music of drums.

Samri (Arabic: سامري‎)is the name of a folkloric music and dance. It involves singing poetry while the daff drum is being played. Two rows of men, seated on the knees sway to the rhythm.

Dress

Saudi Arabian dress strictly follows the principles of hijab (the Islamic principle of modesty, especially in dress). The predominantly loose and flowing, but covering, garments are suited to Saudi Arabia's desert climate. Traditionally, men usually wear an ankle length shirt woven from wool or cotton (known as a thawb), with a keffiyeh (a large checkered square of cotton held in place by a cord coil) or a ghutra (a plain white square made of finer cotton, also held in place by a cord coil) worn on the head. For rare chilly days, Saudi men wear a camel-hair cloak (bisht) over the top. Women's clothes are decorated with tribal motifs, coins, sequins, metallic thread, and appliques. Women are required to wear an abaya or modest clothing when in public.

Ghutrah (Arabic: غتره‎) is a traditional headdress typically worn by Arab men. It is made of a square of cloth ("scarf"), usually cotton, folded and wrapped in various styles around the head. It is commonly worn in areas with an arid climate, to provide protection from direct sun exposure, and also protection of the mouth and eyes from blown dust and sand.

Agal (Arabic: عقال‎) is an Arab headdress constructed of cord which is fastened around the Ghutrah to hold it in place. The agal is usually black in colour.

Thawb (Arabic: ثوب‎) is the standard Arabic word for garment. It is ankle length, usually with long sleeves similar to a robe.

Bisht (Arabic: بشت‎) is a traditional Arabic men’s cloak usually only worn for prestige on special occasions such as weddings.

Abayah (Arabic: عباية‎) is a women's garment. It is a black cloak which loosely covers the entire body except the head. Usually, the sleeves are decorated with stitched embroidery and different bright colors or even crystals, and the rest of the cloak is plain.Some women choose to cover their faces with the Niqab and some don't. Recently, there's a move towards Abaya colors other than black especially in the Makkah Province in the west of the Kingdom.

Kameez/Kurta Salwar is a men's and women's garment. It is worn by Indian and Pakistani people in Saudi Arabia.

Cuisine

 Saudi Arabian cuisine

Arabic unleavened bread, or khobz, is eaten with almost all meals. Other staples include lamb, grilled chicken, falafel (deep-fried chickpea balls), shawarma (spit-cooked sliced lamb- or chicken), and hummus (a paste of chickpea, garlic and lemon). Traditional coffeehouses used to be ubiquitous, but are now being displaced by food-hall style cafes. Arabic tea is also a famous custom, which is used in both casual and formal meetings between friends, family and even strangers. The tea is black, served without milk and often has one of a variety of herbal flavorings. Islamic dietary laws forbid the eating of pork and the drinking of alcohol, and this law is enforced strictly throughout Saudi Arabia.

Film and theater

Cinema of Saudi Arabia

During the 1970s, cinemas were numerous in the Kingdom and were not considered a deviation from religious norms, although they were pressured from tribal norms. It was only during the Islamic revival movement in the 1980s that Islamic Ulams's teaching influenced the government's Cinema policy. Public theaters and cinemas were prohibited as several Saudi ulama(expertise in Islamic studies) deemed those institutions to be incompatible with Islam. However, lately (as of 2009), a reform is being undertaken in the country, in which several cinemas and movies had been shown under serious objections raised by several Saudi groups. An IMAX theater is also available, and in private compounds such as Dhahran and Ras Tanura public theaters can be found, but they are often more popular for local music, arts and theatre productions, rather than the exhibition of motion pictures. DVDs, including American and British movies, are legal and widely available.

[

Literature

Some Saudi novelists have had their books published in Beirut, Lebanon, because of censorship in Saudi Arabia. Despite signs of increasing openness, Saudi novelists and artists in film, theatre, and the visual arts face greater restrictions on their freedom of expression than in the West. Contemporary Saudi novelists include:

Abdul Rahman Munif (exiled, now deceased)

Yousef Al-Mohaimeed

Rajaa al-Sanea

Abdu Khal

Turki al-Hamad (subject of a fatwā and death threats)

Ali al-Domaini

Ahmed Abodehman (now writes in French)

Religion

There are about 25 million people who are Muslims, or 97% of the total population. This figure is calculated taken into consideration the Muslim and non-Muslim expatriates. Saudi citizens who are around 19 million are 100% Muslims.Although the vast majority of Saudis are Sunni Muslims, Shiites represent around 10–15% of the Muslims' Population. Saudi Arabian citizens follow the four main schools of thought or jurisprudence ( Hanbali, Shafie, Maliki, and Hanafi) under the Sunni branch of Islam. The highest religious establishment called "Hayaat Kebar alulama" , which means the commission of grand clerics, contains 21 members who belong to the four main schools of jurisprudence under Sunni Islam. It's worth to note that the similarities between those four schools of thought account for up to 95% and you rarely find a Saudi who associates himself or herself with one school,but rather say that he or she is a "Sunni Muslim" or "Shiite Muslim". The Saudi Shiite Muslims follow the Jaafri or the Zaadi sect under Shiite Islam.

Education

Education in Saudi Arabia

When the Kingdom of Saudi Arabia was founded in 1932, education was not accessible to everyone and limited to individualized instruction at religious schools in mosques in urban areas. These schools taught Islamic law and basic literacy skills. By the end of the century, Saudi Arabia had a nationwide educational system providing free training from preschool through university to all citizens.

The primary education system began in Saudi Arabia in the 1930s. By 1945, King Abdulaziz bin Abdelrahman Al-Saud, the country's founder, had initiated an extensive program to establish schools in the Kingdom. Six years later, in 1951, the country had 226 schools with 29,887 students. In 1954, the Ministry of Education was established, headed by then Prince Fahd bin Abdulaziz as the first Minister of Education. The first university, now known as King Saud University, was founded in Riyadh in 1957.

Today, Saudi Arabia's nationwide public educational system comprises twenty eight (28) universities, more than 24,000 schools, and a large number of colleges and other educational and training institutions. The system provides students with free education, books and health services and is open to every Saudi. Over 25% of the annual State budget is for education including vocational training. The Kingdom has also worked on scholarship programs to send students overseas to the United States, Canada, France, the United Kingdom,Australia, Japan, Malaysia,Spain,Germany,China,Singapore, South Korea and other nations. Currently tens of thousands of Saudi male and female students are being sent to higher-education programs every year under the King Abdullah Scholarship Program

The study of Islam remains at the core of the Saudi educational system. The Islamic aspect of the Saudi national curriculum is examined in a 2006 report by Freedom House. The Saudi religious studies curriculum is taught outside the Kingdom in madrasah throughout the world.

Sports

Men can often be found playing sports. Women rarely participate in sports, and always away from the presence of men; this often leads to indoor gyms. Even though association football is the most popular sport, Saudi Arabia has recently participated in the Summer Olympic Games and in international competitions in volleyball and other sports. The Saudi Arabian national youth baseball team has also participated in the Little League World Series. The Saudi Arabia national football team is often most known for competing four consecutive times in the FIFA World Cup and six times in the AFC Asian Cup, Majed Abdullah, Sami Al-Jaber, Mohamed Al-Deayea, Saeed Al-Owairan, Fahad Al-Bishi, Mohaisen Al-Jam'an, Khalid Massad and Yousuf Al-Thunayan, Fuad Amin .

Military

 Military of Saudi Arabia

 Al-Yamamah arms deal

The Al Yamamah arms deals between Saudi Arabia and the United Kingdom includes aircraft such as the Eurofighter Typhoon

HMS "Makkah", an Al Riyadh class frigate.

Saudi military was founded as the Ikhwan army, the tribal army of Ibn Saud. The Ikhwan had helped King Ibn Saud conquer the Arabian peninsula during the First World War. By expanding the military forces years later, Saudi Arabia today has many military branches.

Military branches of Ministry of Defence:

Army,Air Force,Navy,Air Defence,Independent Military branches,National Guard,

Royal Guard,General Intelligence,Military Police,Saudi Special/Thunder Forces,

Military branches of Ministry of Interior,Saudi Arabian Police Force,

Saudi Arabian Border Guard,Saudi Border Guard,

Saudi Coast Guard,Al-Mujahidoon,

Saudi Emergency Force,

US support

The United States sold or granted more than $80 billion in military hardware between 1951-2006 to the Saudi military. In comparison, the Israeli Defense Forces received $53.6 billion in US military grants between 1949-2007. The Obama Administration has notified Congress plans to offer "advanced aircraft" to the Saudi military worth up the $60 billion. If completed, the sale will be the "largest US arms deal" in history. The US government is also in "talks" with Saudi Arabia about the potential sale of advanced naval and missile-defense upgrades worth up to tens of billions of dollars.

Foreign relations

 Foreign relations of Saudi Arabia

Saudi Arabia is one of the largest contributors of development aid, both in term of volume of aid and in the ratio of aid volume to GDP.

Much of Saudi Arabia's aid has gone to poorer Islamic countries or Islamic communities in non-Islamic countries. This aid has contributed to the spreading of Islam of the sort found in Saudi Arabia, rather than fostering the traditions of the receiving ethnic groups. The effect has been the erosion of regional Islamic cultures through standardization. Examples of the acculturizing effect of Saudi aid can be seen among the Minangkabau and the Acehnese in Indonesia, as well as among the people of the Maldives.

On the 18 December 2008, the William J. Clinton Foundation released a list of all contributors. It included The Kingdom of Saudi Arabia, which gave between US$10–25 million.

In addition, Saudi Arabia remains one of the United States' allies in the region, and relations between the two countries go back as far as 1931 when the US first extended diplomatic recognition. In 1945 President Roosevelt and King Abdulaziz bin Saud met on board a ship to discuss relations between the two countries. Since then, the two have maintained close relations for economic and political reasons.

(source:wikipedia)