Government & Politics
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 Hoati. It also claims that the Qur'an is the constitution of the country, which is governed on the basis of the Sharia (Islamic Law). According the The Economist's Democracy Index, the Saudi government is the ninth most authoritarian regime in the world.
There are no recognized political parties or national elections, except the local elections which were held in the year 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 percent from 2003 revenue levels. Saudi net oil export revenues are forecast to increase in 2005 and 2006, to $150 billion and $154 billion, respectively, mainly due to higher oil prices. Increased oil prices and consequent revenues since the price collapse of 1998 have significantly improved Saudi Arabia's economic situation, with real GDP growth of 5.2 percent in 2004, and forecasts of 5.7% and 4.8% growth for 2005 and 2006, respectively.
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 million bbl/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.). For 2005, Saudi Arabia is assuming a balanced budget, with revenues and expenditures of $74.6 billion each.
In spite of the recent surge in its oil income, Saudi Arabia continues to face serious long-term economic challenges, including high rates of unemployment (12 percent of Saudi nationals), one of the world's fastest population growth rates, and the consequent need for increased government spending. All of these place pressures on Saudi oil revenues. The Kingdom also is facing serious security threats, including a number of terrorist attacks (on foreign workers, primarily) in 2003 and 2004. In response, the Saudis reportedly have ramped up spending in the security area (reportedly by 50 percent in 2004, from $5.5 billion in 2003). Saudi Arabia's per capita oil export revenues remain far below high levels reached during the 1970s and early 1980s. In 2004, Saudi Arabia earned around $4,564 per person, versus $22,589 in 1980. This 80 percent decline in real per capita oil export revenues since 1980 is in large part due to the fact that Saudi Arabia's young population has nearly tripled since 1980, while oil export revenues in real terms have fallen by over 40 percent (despite recent increases). Meanwhile, Saudi Arabia has faced nearly two decades of heavy budget and trade deficits, the expensive 1990-1991 war with Iraq, and total public debt of around $175 billion. On the other hand, Saudi Arabia does have extensive foreign assets (around $110 billion) which provide a substantial fiscal "cushion."
Saudi municipal elections took place in 2005 and some commentators saw this a first tentative step towards the introduction of democratic processes in the Kingdom, including the legalization of political parties. Other analysts of the Saudi political scene were more skeptical.
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. Although accused of being tolerant to extremism, the foreign policy is generally pacific and does not advocate belligerence, violent reform or revolution.
Saudi Arabia is a founding member of the United Nations, having signed the United Nations Charter in 1945. The country plays a prominent 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.
A charter member of the Arab League, Saudi Arabia supports the position that Israel must withdraw from territory occupied in June 1967. Saudi Arabia officially 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. Saudi Arabia does not have diplomatic relations with Israel. The country participates in an active economic boycott of Israel.
The United States recognized the government of King Ibn Saud in 1931, and two years later, in 1933, Ibn Saud granted a concession to the U.S. company, Standard Oil of California, allowing them to explore for oil in the country's Eastern Province, al-Hasa. The company gave the Saudi government £35,000 and paid it other assorted rental fees and royalty payments. In exchange, a newly formed subsidiary of Standard Oil, California-Arabian Standard Oil Company (CASOC), was given exclusive rights to develop oil fields in the region. In 1938, CASOC struck oil near Dhahran, but production over the next several years remained low—only about 42.5 million barrels between 1941 and 1945; less than 1% of the output in the United States over the same time period.
U.S. officials initially paid little attention, not sending a resident ambassador to the country until 1943. However, as World War II progressed, the United States began to believe that Saudi oil was of strategic importance. As a result, in the interest of national security, the U.S. began to push for greater control over the CASOC concession. On February 16, 1943, President Franklin Roosevelt declared that "the defense of Saudi Arabia is vital to the defense of the United States", thereby making possible the extension of the Lend-Lease program to the kingdom. Later that year, the president approved the creation of the state-owned Petroleum Reserves Corporation, with the intent that it purchase all the stock of CASOC and thus gain control of Saudi oil reserves in the region. However, the plan was met by opposition, and ultimately failed. Roosevelt continued to court the government, however—on February 14, 1945, he met with King Ibn Saud aboard the USS Quincy for over five hours, discussing topics such as the countries' security relationship and the creation of a Jewish country in the Mandate of Palestine.
CASOC was later renamed the Arabian-American Oil Company (Aramco). The agreement between the company and the Saudi kingdom was modified several times over the years. In 1950, Saudi Arabia and Aramco agreed to a 50-50 profit-sharing arrangement, and a series of agreements between 1973 and 1980 resulted in the Saudis' regaining full control of the company. In 1988, King Fahd issued a royal decree establishing the Saudi Arabian Oil Company, known as Saudi Aramco, to replace Aramco.
In 1951, under a mutual defense agreement, the U.S. established a permanent U.S. Military Training Mission in the kingdom and agreed to provide training support in the use of weapons and other security-related services to the Saudi armed forces. The U.S. Army Corps of Engineers assisted in the construction of military installations in the kingdom. This agreement formed the basis of what grew into a longstanding security relationship. Two years later, King Abdel died and was succeeded by his son, Crown Prince Saud, who was known for his reputation as a spendthrift. Under King Saud, the kingdom's treasury diminished rapidly and he was forced to turn over direct control of government affairs to his half-brother Faisal from 1958 to 1961. In 1964, the royal family and religious leadership forced Saud to abdicate in favor of Faisal.
In to an October 2001 report in The Wall Street Journal. He warned that Saudi Arabia was being put in an untenable position and reportedly wrote: "A time comes when peoples and nations part. We are at a crossroads. It is time for the United States and Saudi Arabia to look at their separate interests. Those governments that don't feel the pulse of their people and respond to it will suffer the fate of the Shah of Iran."
Nineteen men affiliated with al-Qaeda, including 15 Saudi nationals, hijacked four commercial passenger jet airliners, crashing two of the planes into the Twin Towers of the World Trade Center in New York City, one plane into each tower, which caused both towers to collapse within two hours. Hijackers of the third aircraft crashed that plane into the Pentagon in Arlington County, Virginia. Passengers and members of the flight crew on the fourth hijacked aircraft attempted to retake control of their plane from the hijackers; that plane crashed into a field in rural Somerset County, Pennsylvania. Approximately 3,000 people died in these attacks.
Saudi Arabia issued a statement on the day of the terrorist attacks on America's World Trade Center and Pentagon, calling them "regrettable and inhuman." Saudi recognition to the Taliban stopped and as of mid-November 2001, the Bush administration continued to publicly praise Saudi support for the war on terrorism. However, published media reports have indicated U.S. frustration with Saudi inaction. Although 15 of the 19 Sept. 11 hijackers were Saudi nationals, publicly the Saudis were not cooperating with Americans wanting to look at background files of the hijackers or interview the hijackers' families.
Saudi Arabia engaged the prominent Washington D.C. lobbying firm of Patton Boggs, headed by Thomas Boggs (brother of Cokie Roberts of ABC News and National Public Radio), as registered foreign agents in the wake of the public relations disaster when knowledge of the identities of suspected hijackers became known. They also hired the PR firm Qorvis for $14 million dollars a year. Qorvis engaged in a PR frenzy that publicized the "9/11 Commission finding that there was 'no evidence that the Saudi government as an institution or senior Saudi officials individually funded [Al Qaeda]'—while omitting the report's conclusion that 'Saudi Arabia has been a problematic ally in combating Islamic extremism.'"
Law
The Basic Law, in 1992, declared that Saudi Arabia is a monarchy ruled by the progeny of King Abd Al 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 including foreigners (regardless of religion). 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: Shia 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, including amputations of hands and feet for certain crimes such as murder, robbery, rape, drug smuggling, homosexual activity, and adultery. The courts may impose less severe 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 man. The main reason for this is that, according to Islamic law, men are expected to be providers for their families and therefore are expected to earn more money in their lifetimes. The blood money from a man would be expected to sustain his family, for at least a short time. Honor killings are also not punished as severely as murder. This generally stems from the fact that honor killings are within a family, and done to compensate for some dishonorable act committed. Slavery was abolished in 1962.
