Saudi Arabia (Kingdom of Saudi Arabia)
General Data
Area: 2,149,690 km2
Population: approximately 27,136,977
Capital: Riyadh
King: Abdullah bin Abdul Aziz
Crown Prince: Sultan bin Abdul Aziz
Official language: Arabic
Religion: 97% Muslim
Government
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.).
Economy
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. 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% increase 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.
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.
Geography
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.
Reference: Wikipedia
