Saudi Arabia: Back from the Brink

The modern state of Saudi Arabia is a result of close cooperation and collaboration between Abdul Aziz Al-Saud and puritan followers of the Wahabbi tradition. Wahabbism, a fundamentalist Sunni movement, is the dominant religion of Saudi Arabia and its influence permeates all walks of life here. Saudi Arabia may be an absolute monarchy but the powers of the monarch are not unlimited, and the ruling family depends on the Wahabbi clerics for legitimacy. This dependency has in turn emboldened and empowered the country's fiercely conservative religious establishment to block much needed social, political, and economic reforms.

Until the recent spike in oil prices, Saudi Arabia seemed to be on the verge of a breakdown. Stagnant prices of oil in the eighties and nineties created an economic slowdown as the petroleum sector accounts for roughly 75% of the government’s budgetary revenues, 45% of GDP, and 90% of export earnings. (CIA World Factbook 2005) Population growth outstripped economic growth, creating a massive strain on public finances and threatening the generous welfare system. The presence of American troops on Saudi soil strained the monarchy’s relations with the religious establishment. The role of Saudi nationals in the September 11 bombings in New York City attracted external criticism while domestic terror attacks reinforced its internal vulnerabilities.

Soaring demand for oil and the recent spike in world oil prices have provided a reprieve for Saudi Arabia. The coffers are full and oil prices are likely to remain high for the foreseeable future. International criticism of Saudi Arabia is muted as oil supplies get tighter. Terror attacks in the kingdom have put the clerics on defensive and they've have made the relative security and stability under the monarchy more attractive to the population in general. Yet, the need for reform remains critical…

To be continued

Tags: Saudi Arabia, Middle East, Islam, Economy, Culture, Society, Terrorism, Energy