Saudi Arabia

 

Bureau of Near Eastern Affairs                                                
June 2007                                                                     
                                                                       
  Background Note: Saudi Arabia                                               
                                                                       
  Flag of Saudi Arabia is green, with white Arabic script above a white       
  horizontal saber whose tip points to the hoist side.                        
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Kingdom of Saudi Arabia                                                     
                                                                       
  Geography                                                                   
  Area: 1,960,582 sq. km. (784,233 sq. mi.), slightly more than one-fifth the 
  size of the continental United States.                                      
  Cities (2006 est.): Capital--Riyadh (pop. 4.3 million). Other cities--Jeddah
  (3.4 million), Makkah, (1.6 million), Dammam/Khobar/Dhahran, (1.6 million). 
  Terrain: Primarily desert with rugged mountains in the southwest.           
  Climate: Arid, with great extremes of temperature in the interior; humidity 
  and temperature are both high along the coast.                              
                                                                       
  People                                                                      
  Nationality: Noun--Saudi(s). Adjective--Saudi Arabian or Saudi.             
  Population (2007 est.): 27.6 million (22.0 million Saudis, 5.6 million      
  foreign nationals).                                                         
  Annual growth rate: (2007 est.): 2.06%.                                     
  Ethnic groups: Arab (90% of native pop.), Afro-Asian (10% of native pop.).  
  Religion: Islam.                                                            
  Language: Arabic (official).                                                
  Education: Literacy--Total: 78.8% (male 84.7%, female 70.8%).               
  Health: Infant mortality rate (2007 est.)--12.4/1,000. Life expectancy--male
  74 years, female 78 years.                                                  
  Work force: 6.76 million, about 35% foreign workers (2005 est.);            
  industry--25%; services (including government)--63%; agriculture--12%.      
                                                                       
  Government                                                                  
  Type: Monarchy with Council of Ministers and Consultative Council.          
  Unification: September 23, 1932.                                            
  Constitution: The Holy Qur'an (governed according to Islamic law), Shari'a, 
  and the Basic Law.                                                          
  Branches: Executive--King (chief of state and head of government).          
  Legislative--a Consultative Council with advisory powers was formed September
  1993. Judicial--Supreme Council of Justice, Islamic Courts of First Instance
  and Appeals.                                                                
  Administrative divisions: 13 provinces.                                     
  Political parties: None.                                                    
                                                                       
  Economy                                                                     
  GDP (2006 est.): $374 billion.                                              
  Annual growth rate (2006 est.): 5.9%.                                       
  Per capita GDP (2006 est.): $13,800.                                        
  Natural resources: Hydrocarbons, gold, uranium, bauxite, coal, iron,        
  phosphate, tungsten, zinc, silver, copper.                                  
  Agriculture: Products--dates, grains, livestock, vegetables. Arable         
  land--1.76%.                                                                
  Industry: Types--petroleum, petrochemicals, cement, fertilizer, light       
  industry.                                                                   
  Trade (2006 est.): Exports--$204.5 billion: petroleum and petroleum products.
  Imports--$64.16 billion: manufactured goods, transportation equipment,      
  clothing and textiles, processed food products. Major trading partners--U.S.,
  Japan, South Korea, China, Germany, U.K., France, Italy (2005).             
                                                                       
  PEOPLE                                                                      
  Saudi Arabia's 2007 population was estimated to be about 27.6 million,      
  including about 5.6 million resident foreigners. Until the 1960s, most of the
  population was nomadic or seminomadic; due to rapid economic and urban      
  growth, more than 95% of the population now is settled. Some cities and oases
  have densities of more than 1,000 people per square kilometer (2,600 per sq.
  mi).                                                                        
                                                                       
  Saudi Arabia is known as the birthplace of Islam, which in the century      
  following Muhammad's death in 632 A.D. spread west to Spain and east to     
  India. Islam obliges all Muslims to make the Hajj, or pilgrimage to Makkah, 
  at least once during their lifetime if they are able to do so. The cultural 
  environment in Saudi Arabia is highly conservative; the country adheres to a
  strict interpretation of Islamic religious law (Shari'a). Cultural          
  presentations must conform to narrowly defined standards of ethics. Men and 
  women are not permitted to attend public events together and are segregated 
  in the work place.                                                          
                                                                       
  Most Saudis are ethnically Arab. Some are of mixed ethnic origin and are    
  descended from Turks, Iranians, Indonesians, Indians, Africans, and others, 
  most of whom immigrated as pilgrims and reside in the Hijaz region along the
  Red Sea coast. Many Arabs from nearby countries are employed in the kingdom.
  There also are significant numbers of Asian expatriates mostly from India,  
  Pakistan, Bangladesh, Indonesia, and the Philippines. There are less than   
  100,000 Westerners in Saudi Arabia.                                         
                                                                       
  HISTORY                                                                     
  Except for a few major cities and oases, the harsh climate historically     
  prevented much settlement of the Arabian Peninsula. People of various       
  cultures have lived in the peninsula over a span of more than 5,000 years.  
  The Dilmun culture, along the Gulf coast, was contemporaneous with the      
  Sumerians and ancient Egyptians, and most of the empires of the ancient world
  traded with the states of the peninsula.                                    
                                                                       
  The Saudi state began in central Arabia in about 1750. A local ruler,       
  Muhammad bin Saud, joined forces with an Islamic reformer, Muhammad Abd     
  Al-Wahhab, to create a new political entity. 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 on the peninsula. The modern Saudi state was founded by the late King
  Abdul Aziz Al Saud (known internationally as Ibn Saud). In 1902, Abdul Aziz 
  recaptured 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 Hijaz between 1913 and 1926. In 1932, these regions   
  were unified as the Kingdom of Saudi Arabia.                                
                                                                       
  Boundaries with Jordan, Iraq, and Kuwait were established by a series of    
  treaties negotiated in the 1920s, with two "neutral zones"--one with Iraq and
  the other with Kuwait--created. The Saudi-Kuwaiti neutral zone was          
  administratively partitioned in 1971, with each state continuing to share the
  petroleum resources of the former zone equally. Tentative agreement on the  
  partition of the Saudi-Iraqi neutral zone was reached in 1981, and partition
  was finalized by 1983. 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. A June 2000 treaty further delineated portions of the
  boundary with Yemen. 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. The border between Saudi Arabia and Qatar was resolved in March  
  2001. The border with Oman also is not demarcated.                          
                                                                       
  King Abdul Aziz died in 1953 and was succeeded by his eldest son, Saud, who 
  reigned for 11 years. In 1964, Saud abdicated in favor 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.                      
                                                                       
  Saudi forces did not participate in the Six-Day (Arab-Israeli) War of June  
  1967, but the government later provided annual subsidies to Egypt, Jordan,  
  and Syria to support their economies. 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.                                                                  
                                                                       
  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.                                                          
                                                                       
  In June 1982, King Khalid died, and 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 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 Arabian Gulf states dedicated to fostering regional economic   
  cooperation and peaceful development.                                       
                                                                       
  In 1990-91, King Fahd played a key role before and during the Gulf war. 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         
  reestablish the sovereignty and territorial integrity of Kuwait. 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 nonaligned 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.              
                                                                       
  King Fahd suffered a stroke in November 1995. From 1997, Crown Prince       
  Abdullah took on much of the day-to-day responsibilities of running the     
  government. Upon King Fahd's death on August 1, 2005, Abdullah assumed the  
  throne as King. Prince Sultan, Minister of Defense and Aviation, became Crown
  Prince and First Deputy Prime Minister.                                     
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  The central institution of Saudi Arabian Government is the monarchy. The    
  Basic Law adopted in 1992 declared that Saudi Arabia is a monarchy ruled by 
  the sons and grandsons of King Abd Al Aziz Al Saud, and that the Holy Qur'an
  is the constitution of the country, which is governed on the basis of Islamic
  law (Shari'a). There are no political parties or national elections; however,
  the country held its first municipal elections in 2005. The king's powers are
  limited because he must observe the 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 leading members 
  of the royal family choose the king from among themselves with the subsequent
  approval of the ulema.                                                      
                                                                       
  Saudi kings gradually have developed a central government. Since 1953, the  
  Council of Ministers, appointed by and responsible to 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 and
  second deputy prime ministers, 20 ministers (of whom the minister of defense
  also is the second deputy prime minister), two ministers of state, and a    
  small number of advisers and heads of major autonomous organizations.       
                                                                       
  Legislation is by resolution of the Council of Ministers and the Shura      
  Council, ratified by royal decree, and must be compatible with the Shari'a. 
  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 12 senior jurists. The 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, or public audience) and the right to petition them directly are     
  well-established traditions.                                                
                                                                       
  The kingdom is divided into 13 provinces governed by princes or close       
  relatives of the royal family. All governors are appointed by the King.     
                                                                       
  In March 1992, King Fahd issued several decrees outlining the basic statutes
  of government and codifying for the first time procedures concerning the    
  royal succession. The King's political reform program also provided for the 
  establishment of a national Consultative Council, with appointed members    
  having advisory powers to review and give advice on issues of public        
  interest. It also outlined a framework for councils at the provincial or    
  emirate level.                                                              
                                                                       
  In September 1993, King Fahd issued additional reform decrees, appointing the
  members of the national Consultative Council and spelling out procedures for
  the new council's operations. He announced reforms regarding the Council of 
  Ministers, including term limitations of 4 years and regulations to prohibit
  conflict of interest for ministers and other high-level officials. The      
  members of 13 provincial councils and the councils' operating regulations   
  also were announced in September 1993. In February, March, and April 2005,  
  Saudis voted in the country's first municipal elections in more than 50     
  years. Women, and male members of the military, were not permitted to vote. 
                                                                       
  In July 1997, the membership of the Consultative Council was expanded from 60
  to 90 members, and again in May 2001 from 90 to 120 members. In 2005,       
  membership was expanded to 150 members. Membership has changed significantly
  during expansions of the council as many members have not been reappointed. 
  The role of the council is gradually expanding as it gains experience.      
                                                                       
  In November 2006, King Abdallah announced the formation of an Allegiance    
  Committee which, in the future, will select the Crown Prince.               
                                                                       
  Principal Government Officials                                              
  King, Prime Minister, Custodian of the Two Holy Mosques--King Abdullah bin  
  Abdul Aziz Al Saud                                                          
  Minister of Foreign Affairs--Prince Saud Al Faysal bin Abdul Aziz Al Saud   
  Ambassador to the U.S--Adel al-Jubir                                        
                                                                       
  The Embassy of the Kingdom of Saudi Arabia is located at 601 New Hampshire  
  Avenue NW, Washington, DC 20037; tel. 202-342-3800.                         
                                                                       
  ECONOMY                                                                     
  Oil was discovered in Saudi Arabia by U.S. geologists in the 1930s, although
  large scale production did not begin until after World War II. Oil wealth has
  made possible rapid economic development, which began in earnest in the 1960s
  and accelerated spectacularly in the 1970s, transforming the kingdom.       
                                                                       
  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 263 billion barrels, 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 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.                                                                   
                                                                       
  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 per day (b/d) during 1980-81, dropped to about 2  
  million b/d 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 and to support stability in the
  international oil market.                                                   
                                                                       
  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.                    
                                                                       
  In response to increasing international demand for oil, Saudi ARAMCO is     
  engaged in an expansion of its oil production capacity, and plans to raise  
  its capacity from the current 9.5-10 million barrels/day (mb/d) to 12 mb/d  
  within the next several years. Saudi ARAMCO is also increasing production of
  associated and non-associated natural gas to feed the expanding petrochemical
  sector. Notably, Saudi Arabia has awarded contracts to foreign companies to 
  conduct gas exploration in selected regions of the country--the first such  
  foreign participation in the petroleum sector upstream since the            
  nationalization of ARAMCO in the 1970s.                                     
                                                                       
  Saudi Arabia continues to pursue rapid industrial expansion, led by the     
  petrochemical sector. The Saudi Basic Industries Corporation (SABIC), a     
  parastatal petrochemical company, is now one of the world's leading         
  petrochemical producers, and the government promotes private sector         
  involvement in petrochemicals. The government also plans new investments in 
  the mining sector and in refining,                                          
                                                                       
  After Saudi Arabia announced its intention to join the World Trade          
  Organization (WTO), negotiations focused on increasing market access to     
  foreign goods and services and the timeframe for becoming fully compliant   
  with WTO obligations. In April 2000, the government established the Saudi   
  Arabian General Investment Authority to encourage foreign direct investment 
  in the country. Saudi Arabia signed a Trade Investment Framework Agreement  
  with the U.S. in July 2003, and joined the WTO in December 2005.            
                                                                       
  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 80%       
  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) focused more on economic diversification and a 
  greater role of the private sector in the Saudi economy. For the period     
  2000-2004, the Saudi Government aimed 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 set a target of creating 817,300
  new jobs for Saudi nationals.                                               
                                                                       
  The eighth plan (2005-2010) again focuses on economic diversification in    
  addition to education and inclusion of women in society. The plan calls for 
  establishing new universities and new colleges with technical               
  specializations. Privatization as well as emphases on a knowledge-based     
  economy and tourism will help promote the goal of economic diversification. 
                                                                       
  FOREIGN RELATIONS                                                           
  Saudi foreign policy objectives are to maintain its security and its        
  paramount position on the Arabian Peninsula, defend general Arab and Islamic
  interests, promote solidarity among Islamic governments, and maintain       
  cooperative relations with other oil-producing and major oil-consuming      
  countries.                                                                  
                                                                       
  Saudi Arabia signed the UN Charter in 1945. The country plays a prominent and
  constructive role in the International Monetary Fund, the World Bank, and   
  Arab and Islamic financial and development assistance institutions. One of  
  the largest aid donors in the world, it still gives some aid to a number of 
  Arab, African, and Asian countries. Jeddah is the headquarters of the       
  Secretariat of the Organization of the Islamic Conference and its subsidiary
  organization, the Islamic Development Bank, founded in 1969.                
                                                                       
  Membership in the 11-member OPEC and in the technically and economically    
  oriented Arab producer group--the Organization of Arab Petroleum Exporting  
  Countries--facilitates coordination of Saudi oil policies with other        
  oil-exporting governments. As the world's leading exporter of petroleum,    
  Saudi Arabia has a special interest in preserving a stable and long-term    
  market for its vast oil resources by allying itself with healthy Western    
  economies which can protect the value of Saudi financial assets. It generally
  has acted to stabilize the world oil market and tried to moderate sharp price
  movements.                                                                  
                                                                       
  The Saudi Government frequently helps mediate regional crises and support the
  Israeli-Palestinian peace negotiations. A charter member of the Arab League,
  Saudi Arabia supports the position that Israel must withdraw from the       
  territories which it occupied in June 1967, as according to United Nations  
  Resolution 242. Saudi Arabia supports a peaceful resolution of the          
  Arab-Israeli conflict but rejected the Camp David accords, claiming that they
  would be unable to achieve a comprehensive political solution that would    
  ensure Palestinian rights and adequately address the status of Jerusalem.   
  Although Saudi Arabia broke diplomatic relations with and suspended aid to  
  Egypt in the wake of Camp David, the two countries renewed formal ties in   
  1987. In March 2002, Crown Prince Abdallah offered a Middle East peace plan,
  now known as the Arab Peace Initiative, at the annual summit of the Arab    
  League in which Arab governments would offer "normal relations and the      
  security of Israel in exchange for a full Israeli withdrawal from all       
  occupied Arab lands, recognition of an independent Palestinian state with   
  Jerusalem as its capital, and the return of Palestinian refugees." In March 
  2007 the Arab League reiterated its support for the Arab Peace Initiative by
  endorsing it as the foundation for a broad Arab-Israeli peace.              
                                                                       
  In 1990-91, Saudi Arabia played an important role in the Gulf War, developing
  new allies and improving existing relationships between Saudi Arabia and some
  other countries. Saudi Arabia provided water, food, shelter, and fuel for   
  coalition forces in the region. Saudi Arabia's combined costs in payments,  
  foregone revenues, and donated supplies were $55 billion. More than $15     
  billion went toward reimbursing the United States alone. However, there also
  were diplomatic and financial costs. Relations between Saudi Arabia and     
  Tunisia, Algeria, and Libya deteriorated. Each country had remained silent  
  following Iraq's invasion of Kuwait but called for an end to violence once  
  the deployment of coalition troops began. Relations between these countries 
  and Saudi Arabia have returned to their pre-war status. Saudi Arabia's      
  relations with those countries which expressed support for Saddam Hussein's 
  invasion of Kuwait--Yemen, Jordan, and Sudan--were severely strained during 
  and immediately after the war. For example, several hundred thousand Yemenis
  were expelled from Saudi Arabia after the Government of Yemen announced its 
  position, thus exacerbating an existing border dispute. Saudi-Yemeni        
  relations, especially in the wake of the 1994 Yemen civil war, remained     
  fragile and of significant concern to the Saudi Government. Relations have  
  slowly warmed over time and the Yemeni-Saudi border was finally demarcated in
  2000. The Palestine Liberation Organization's support for Iraq cost it      
  financial aid as well as good relations with Saudi Arabia and other Gulf    
  states. Recently, though, Saudi Arabia's relations with Jordan and the      
  Palestinian Authority have improved, with the Saudi Government providing    
  assistance for the Palestinian Authority.                                   
                                                                       
  As it had during the 1990-91 Gulf War, Saudi Arabia provided important      
  support to Coalition efforts in Operation Iraqi Freedom. In 2006, Saudi     
  Arabia hosted a conference to promote sectarian reconciliation within Iraq, 
  and has pledged substantial debt relief to aid the elected government. Saudi
  Arabia is an important player in promoting stability and security in the Gulf
  region, and provided critical reconstruction support to Lebanon following the
  2006 conflict between Hezbollah and Israel. Saudi Arabia has also taken a   
  more prominent leadership role within the Organization of the Islamic       
  Conference. In addition to promoting its Arab Peace initiative in 2007, in  
  February it brokered an agreement between Palestinian factions known as the 
  "Mecca Agreement," and in May 2007 King Abdullah brokered a reconciliation  
  agreement between Chad and Sudan.                                           
                                                                       
  U.S.-SAUDI ARABIAN RELATIONS                                                
  Saudi Arabia's unique role in the Arab and Islamic worlds, its possession of
  the world's largest reserves of oil, and its strategic location make its    
  friendship important to the United States. Diplomatic relations were        
  established in 1933; the U.S. embassy opened in Jeddah in 1944 and moved to 
  Riyadh in 1984. The Jeddah embassy became a U.S. consulate. Meanwhile, a U.S.
  consulate opened in Dhahran in 1944.                                        
                                                                       
  The United States and Saudi Arabia share a common concern about regional    
  security, oil exports and imports, and sustainable development. Close       
  consultations between the U.S. and Saudi Arabia have developed on           
  international, economic, and development issues such as the Middle East peace
  process and shared interests in the Gulf. The continued availability of     
  reliable sources of oil, particularly from Saudi Arabia, remains important to
  the prosperity of the United States as well as to Europe and Japan. Saudi   
  Arabia is one of the leading sources of imported oil for the United States, 
  providing more than one million barrels/day of oil to the U.S. The U.S. is  
  Saudi Arabia's largest trading partner, and Saudi Arabia is the largest U.S.
  export market in the Middle East.                                           
                                                                       
  In addition to economic ties, a longstanding security relationship continues
  to be important in U.S.-Saudi relations. A U.S. military training mission   
  established at Dhahran in 1953 provides training and support in the use of  
  weapons and other security-related services to the Saudi armed forces. The  
  United States has sold Saudi Arabia military aircraft (F-15s, AWACS, and    
  UH-60 Blackhawks), air defense weaponry (Patriot and Hawk missiles), armored
  vehicles (M1A2 Abrams tanks and M-2 Bradley infantry fighting vehicles), and
  other equipment. The U.S. Army Corps of Engineers has had a long-term role in
  military and civilian construction activities in the Kingdom.               
                                                                       
  The Gulf War and Operation Iraqi Freedom demonstrated U.S.-Saudi cooperation
  in the areas of cultural accommodation, as well as in military operations.  
  For example, the U.S. military issued general orders prohibiting the        
  consumption of alcohol and setting guidelines for off-duty behavior and     
  attire. Saudi Arabia accommodated U.S. culture and its military procedures by
  allowing U.S. servicewomen to serve in their varied roles throughout the    
  kingdom--a major step for a highly patriarchal society. In August 2003,     
  following the U.S.-led war in Iraq in March and April 2003, the United States
  withdrew its troops stationed in Saudi Arabia.                              
                                                                       
  Saudi Arabia's relations with the United States were strained after the     
  September 11, 2001, terrorist attacks in which 15 of the suicide bombers were
  Saudi citizens. On May 12, 2003 suicide bombers killed 35 people, including 
  nine Americans, in attacks at three housing compounds for Westerners in     
  Riyadh. On November 8, 2003 terrorists attacked another compound housing    
  foreign workers from mainly Arab countries. At least 18 people, including 5 
  children died in this attack, and more than 100 were injured.               
                                                                       
  On May 1, 2004 terrorists killed two Americans in the Yanbu oil facility in 
  the western part of the country. On May 29, 2004 terrorists killed one      
  American and wounded several others in attacks on an official building and  
  housing compound in al-Khobar in the Eastern Province. On June 6, terrorists
  shot and killed a BBC journalist. On June 9 and June 12, 2004 terrorists    
  killed Americans Robert Jacobs and Kenneth Scroggs. On June 18, 2004        
  terrorists kidnapped and beheaded American Paul Johnson. On December 6, 2004
  terrorists attacked the U.S. Consulate in Jeddah, killing five consulate    
  employees. Terrorists also targeted and killed other foreign nationalities  
  during this time. In February 2007, four French nationals were killed in    
  western Saudi Arabia in a suspected terrorist attack.                       
                                                                       
  Currently, Saudi Arabia is an important partner in the campaign against     
  terrorism, providing assistance in the military, diplomatic, and financial  
  arenas. Counterterrorism cooperation between Saudi Arabia and the United    
  States increased significantly after the May 12, 2003 bombings in Riyadh and
  continues today. In February 2005, the Saudi government sponsored the first 
  ever Counter-Terrorism International Conference in Riyadh.                  
                                                                       
  Human Rights                                                                
  Despite close cooperation on security issues, the United States remains     
  concerned about human rights conditions in Saudi Arabia. Principal human    
  rights problems include abuse of prisoners and incommunicado detention;     
  prohibitions or severe restrictions on the freedoms of speech, press,       
  peaceful assembly and association, and religion; denial of the right of     
  citizens to change their government; systematic discrimination against women
  and ethnic and religious minorities; and suppression of workers' rights.    
                                                                       
  Principal U.S. Officials                                                    
  Ambassador--Ford Fraker                                                     
  Deputy Chief of Mission--Michael Gfoeller                                   
  Counselor for Consular Affairs--Kathleen Riley                              
  Counselor for Economic Affairs--Robert Murphy                               
  Counselor for Political Affair--David Rundell                               
  Counselor for Political-Military Affairs--Clarence Hudson                   
  Counselor for Public Affairs--Walter Douglas                                
  Consul General, Dhahran--John Kincannon                                     
  Consul General, Jeddah--Tatiana Gfoeller                                    
                                                                       
  The U.S. Embassy in Saudi Arabia is located in the Diplomatic Quarter of    
  Riyadh (tel. 966-1-488-3800). The Consulate General in Jeddah is located on 
  Palestine Road, Ruwais, Jeddah (tel. 966-2-667-0080); and the Consulate     
  General in Dhahran is located between ARAMCO Headquarters and the King Abdul
  Aziz Airbase (tel. 966-3-330-3200). The embassy and consulates are open for 
  business Saturday through Wednesday, in accordance with the official workweek
  of Saudi Arabia.                                                            
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

***********************************************************
See http://www.state.gov/r/pa/bgn/ for all Background notes
************************************************************
To change your subscription, go to http://www.state.gov/misc/echannels/66822.htm