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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. 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 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.
Country name: conventional long form: Kingdom of Saudi Arabia
conventional short form: Saudi Arabia
local long form: Al Mamlakah al Arabiyah as Suudiyah
local short form: Al Arabiyah as Suudiyah
Capital: Riyadh
Languages: Arabic
Religions: Muslim 100%
Saudi Arabia Information Resource
A wealth of information on the Kingdom of Saudi Arabia. Fact file, kings of Saudi Arabia, government, judicial system, oil, the economy, agriculture, transport, industrial development, communications, history, culture, art and much-much more.
Arab News
The Middle East's leading English language daily newspaper online. Covering latest news from the region and the world, featuring sports, opinions, business, community news, local press.
Map of Saudi Arabia
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