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Middle East and North Africa
Saudi Arabia |
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Last reviewed: 20 August 2009 |
Country information
Area: 2.25 million square kilometres
Population: 27,600 000 (2007 est.)
Capital City: Riyadh
People: Arabs, 7 million of the total population are foreign workers
Languages: Arabic is the official language (English is widely spoken in business circles)
Religion: Islam; the public practise of any other religion is forbidden. About 90% of the Muslim population is Sunni and 10% Shia.
Currency: Saudi Riyal (SR)
Major political parties: Political parties are not permitted
Government: Monarchy
Head of State and Prime Minister: King Abdullah bin Abdul Aziz Al Saud, Custodian of the Two Holy Mosques
First Deputy Prime Minister: His Royal Highness Prince Sultan bin Abdul Aziz Al Saud
Second Deputy Prime Minister: His Royal Highness Prince Naif bin Abdul Aziz Al Saud
Foreign Minister: His Royal Highness Prince Saud al Faisal bin Abdul Aziz
Membership of international groups/organisations: World Trade Organisation, Arab League, Gulf Co-operation Council, Organisation of Islamic Countries and United Nations and Organisation of Petroleum Exporting Countries, IMF and World Bank.
Flag: The flag of Saudi Arabia bears the Muslim creed: 'There is no God but God: Muhammad is the Messenger of God.' The official emblem is a date palm, representing vitality and growth, and two crossed swords, symbolising justice and strength rooted in faith.
HEALTH/TRAVEL
Some parts of Saudi Arabia, most notably the South Western region of Jizan, are potentially malarial. Precautions should be taken when visiting this area. The Foreign and Commonwealth Office recommends visitors have immunisations for polio, hepatitis and tetanus before visiting Saudi Arabia.
Hajj and Umrah
During the period of Hajj and Umrah, pilgrims are required by the Government of Saudi Arabia to have a valid certificate of vaccination against the ACWY strains of meningitis. This is a visa requirement. Visitors may be refused entry if they do not have a valid certificate showing that they have received this quadrivalent meningitis vaccination. For further details and requirements please check travel advice on www.fco.gov.uk
Saudi Culture
Islamic principles and social customs are strictly observed in Saudi Arabia and influence all aspects of life and society. Saudi Arabia adheres to the Islamic sharia legal system. The Saudi working week is from Saturday to Wednesday. Thursday and Friday are the 'weekend'.ECONOMY
Saudi Arabia has the largest proven oil reserves in the world and is by a long way the largest exporter of oil. Oil was discovered in 1938, and production began under the then US-controlled Aramco (Arabian American Oil Company). Saudi Aramco, now nationalised, controls all onshore oil and has the largest reserve base of any company in the Exporting Countries (OPEC); It has always been the dominant player within OPEC in adjusting production in line with market stability.
Large oil earnings, particularly since the oil price rises of the early 1970’s, have allowed the Government to spend heavily to look after the people and to build the infrastructure of a modern economy. The economy is heavily dependent on oil earnings and the high level of Government spending they make possible: a large and varied private sector has grown up but remains vulnerable to fluctuations in the oil price and government spending. In the 1980’s and 1990’s economic growth was barely fast enough to keep up with population growth, but very high oil prices in 2003-5 have made possible a strong spurt in growth. The impact of the recent drop in oil prices and the global financial crisis on Saudi Arabia is not yet clear. There are signs it is having some negative impact on the economy but not to the same extent as some of its Gulf neighbours.
Saudi Arabia has long had a very liberal policy on the use of foreign workers, who form the vast bulk of the private sector workforce. But the Saudi population is rapidly increasing and policy is now focusing on the need to create more jobs for young Saudis.
Economic reform continues: moves in recent years include opening some previously closed sectors of the economy, such as the gas industry, to investment by foreign companies. Upstream oil remains closed to foreign investment. Saudi Arabia has joined the World Trade Organisation.
Basic Economic Facts
Proven oil reserves (end-2004): 262.7bn barrels
Proven oil reserves as share of world total: 25%
Oil production (2009): 11mbd
Oil production as share of world total (2007): 11%
GDP (2006): US$500bn
Population including expatriates (2007): 27.6 million
GDP per head (2006): US$20,000
Annual growth rate in real GDP (2008): 4.3% (Oil 0.2%, non-oil 6.3%)
Major sectors: Oil, petrochemicals, financial services, construction
Major destinations for Saudi exports: USA, Japan, Korea, China and EU
Major exporters to Saudi Arabia: USA, Japan, Germany, China and UK
Exchange Rate (average 2009): £1=5.5 Saudi Riyals (US$1=3.75 Saudi Riyals)
Money: The Saudi Riyal (SR) is divided into 100 halalas. Notes come in denominations of SR1, 5, 10, 20, 50, 100, 200 and 500. Coins come in denominations of 5,10, 25 and 50 halalas
UK Trade & Investment Country Profile: Saudi Arabia
HISTORY
Modern Saudi Arabia was formed in 1932 when Abdul Aziz bin Abdul Rahman Al Saud united different regions of the Arabian Peninsula into one nation. On 23 September 1932, Abdul Aziz was proclaimed King. All of Saudi Arabia's rulers since 1932 have been descendants of Ibn Saud. During his rule, King Abdul Aziz laid the foundations for the modernisation of his country. He began to build the country's infrastructure, first establishing roads and basic communications systems, and later introducing modern technology and improving education, health care and agriculture.
In November 1953, King Abdul Aziz died and was succeeded by his eldest son, Crown Prince Saud bin Abdul Aziz Al-Saud. The new King’s brother, Faisal bin Abdul Aziz, was named Crown Prince. King Saud established the Council of Ministers and the Ministries of Health, Education and Commerce. The Crown Prince became King Faisal in 1964. To deepen links between Islamic nations, he travelled throughout the Arab and Islamic world.
In 1975, King Faisal was assassinated by his nephew, Faisal bin Musa’id bin Abdul Aziz. He was succeeded by his brother, King Khalid bin Abdul Aziz, whose reign lasted until 1982, when he died of a heart attack. His brother, Fahd, who had been made Crown Prince on King Faisal’s death, succeeded him. In 1986, King Fahd stopped using the title ‘His Majesty’ and took the title ‘Custodian of the Two Holy Mosques’. Since 1996, Crown Prince Abdullah increasingly took on more responsibility after King Fahd suffered a stroke and upon the death of King Fahd on 1 August 2005, Crown Prince Abdullah became King and Prince Sultan became Crown Prince.
BBC News Timeline: Saudi Arabia
INTERNATIONAL RELATIONS
Saudi Arabia's Relations with Neighbours & the International Community
Saudi Arabia plays a critical role in the region. King Abdullah’s Beirut declaration (2002), known as the Arab Peace Initiative (API), was a landmark, and remains important to the search for peace. The declaration was endorsed in March 2007 at an Arab League Summit in Riyadh and re-confirmed by the Arab League in 2008. In December 2008, the Arab League wrote to President – elect Obama reiterating their support for the API and urging Obama to engage in the peace process. The Saudi’s played an important role in bringing this about. King Abdullah also brokered the Mecca Agreement forming a Palestinian National Unity Government in February 2007. Saudi Arabia is committed to ensuring that the issue of Palestine remains a priority to the international community.Saudi Arabia supports the political process in Iraq and is a strong supporter of national unity there. Saudi Arabia has a critical role to play in supporting the Iraqi Prime Minister Maliki's broad-based government, including through the International Compact and border security. The Saudis fully recognise that the success of the revised Baghdad Security Plan is critical not only to Iraq’s, but to the whole region’s future stability. Furthermore, Saudi Arabian Foreign Minister Prince Saud declared that Saudi Arabia is committed to cutting Iraqi debt.
Saudi Arabia remains concerned about instability in Lebanon, which is a risk for the whole region and has repeatedly called for a political solution to the country’s problems. Saudi Arabia is a significant investor in Lebanon and is the largest single donor to the reconstruction effort.
In 1981, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates established the Gulf Cooperation Council (GCC), a forum for economic and political policy coordination.
Saudi Arabia is a vital partner to the UK in our global counter terrorism efforts. The Saudi government stands firm against terrorism and is determined to take action against terrorists. It has a record of condemning acts of terrorism. The Saudi royal family was swift to condemn the terrorist attacks of 11 September 2001, and were one of the first countries to offer help to the UK after 7 July attacks Saudi Arabia has also suffered from terrorism. Al Qaeda represents as much of a threat to Saudi Arabia as it does to us.
Cultural Relations with the UK
The UK and Saudi Arabia have a number of cultural and educational links. The British Council has an important English language and vocational training scheme in Saudi Arabia. The number of Saudi students at UK universities continues to grow. In the academic year 2007/8 12,000 Saudi students attended UK universities on Saudi government scholarships and this number is likely to increase in 2009.
As King Abdullah’s title, ‘Custodian of the Two Holy Mosques’ suggests, Saudi Arabia is home to the two most important sites in Islam; Mecca and Medina. Every year millions of Muslims travel to Saudi Arabia to perform the Hajj and Umrah pilgrimages. In 1999, the UK became the first predominantly Christian country to organise an official Hajj delegation to assist the 20,000 British pilgrims. It included members of the Foreign and Commonwealth Office and volunteers from the Muslim community. This has been repeated every year since then.
British Council: Saudi ArabiaGEOGRAPHY
Saudi Arabia is about the size of Western Europe, covering four-fifths of the Arabian Peninsula. The Red Sea lies on the West coast and the Persian Gulf Bahrain, Qatar and the United Arab Emirates on the East. Saudi Arabia has borders with Yemen and Oman in the South, and Jordan, Iraq and Kuwait in the North. There are four geographical regions: Hejaz (North-West), Asir (South-West), Nejd (Central Plateau) and Al Hasa (Eastern Province). Most of the population is concentrated in Jeddah and Mecca in the West, Riyadh in the centre and Dammam and Al Khobar in the East. Saudi Arabia’s Empty Quarter is the largest sand desert in the world and is the size of France.
Summer temperatures inland can reach 50°C during the day, but can fall dramatically to below 30°C at night. In winter they can be close to freezing in the desert. The coastal temperatures are more moderate but humidity is high.
POLITICS
Recent Political Developments
Saudi Arabia is a monarchy with a political system rooted in Islamic Sharia law. The monarchy is descended from the founder of modern day Saudi Arabia. King Abdullah, the Head of State, is also the Prime Minister and nominates a Council of Ministers. His half-brother, Prince Sultan, is the Crown Prince. Other members of the King's close family hold important roles, including Prince Naïf, who was appointed Second Deputy Prime Minister in March 2009.
Between 1992 and 1993, King Fahd introduced a number of political reforms, including the establishment in 1993 of a Consultative Council, the Majlis Al-Shura. It has 120 members, all of whom were selected by King Fahd apart from, Princes and serving Ministers. The Council’s role is to formalise existing political arrangements and debate new political legislation or social developments.
In January 2003, Crown Prince Abdullah set out proposals for "self-reform and the promotion of political participation" in the Arab world. A few days later he received a petition signed by 120 people which called for reform including: election of members to the Shura council and regional assemblies; an independent judiciary; freedom of speech and association; the development of civil society and increased human rights; a greater public role for women; and a national forum for open discussion.
In October 2006 the King announced the creation of an Allegiance Commission. Made up of senior members of the Al Saud family the Commission governs the selection of a new King or Crown Prince if either of their predecessors die. It also provides for the possibility of abdication in the event of a medical incapacitation.
King Abdullah’s most recent round of reforms took place in February 2009. These reforms included: four new cabinet ministers; new judges; new heads of governmental bodies including the Saudi Arabian Monetary Authority ( SAMA, the central bank) and the religious police; 79 new members of the Shura Council (the fledgling parliament); two senior military appointments; and new religious figures.
Importantly, King Abdullah appointed the first woman to hold ministerial rank in Saudi Arabia. Dr Nora al Fayez is now Deputy Education Minister for Girl’s education.
Elections
As part of this reform process, the then Crown Prince Abdullah announced in October 2003 the plan to hold municipal elections for half of the members of municipal councils. These elections were the first elections to a government body in Saudi Arabia. Polling took place between February and April 2005. But in 2009 the Cabinet announced that these elections would be postponed for two years.
HUMAN RIGHTS
The British Government has a number of concerns about human rights in Saudi Arabia. These include aspects of the judicial system; corporal and capital punishment; torture; discrimination against women and non-Muslims; and restrictions on freedom of movement, expression, assembly and worship.
The British Government remains committed to raising human rights with the Saudi authorities at every opportunity at working, Ambassadorial and Ministerial level. The British Government, as a member of the European Union, strongly advocates the abolition of the death penalty in Saudi Arabia.
The British Government also recognises that the situation is slowly improving. There are now two semi-governmental human rights bodies in the Kingdom: the Human Rights Commission and the National Society for Human Rights. These institutions raise awareness of human rights in the Kingdom and help individuals by taking their concerns to the interested governmental body. In May 2007, NSHR published its first annual report since its conception in 2004. This was a welcome development. It is not yet clear when the next report will be published.
Saudi Arabia has signed and/or ratified the Convention on the Rights of the Child (CRC) in 1996; the International Covenant on the Elimination of all Forms of racial Discrimination (CERD) in 1997; the Convention Against Torture (CAT) in 1997 and the International Covenant on the Elimination of all forms of Discrimination Against Women (CEDAW) in 2000.
The UN Human Rights Council’s Universal Periodic Review (UPR) of the human rights record of Saudi Arabia was conducted in Geneva on 6 February 2009. The UK recommended that Saudi Arabia make the following changes:
1. To enact and implement a Law of Association to guarantee the right to form civil society organisations and protect those organisations from government interference.
2. To abolish the guardianship system. Which severely limits the rights of women to act as autonomous and equal members of Saudi society.
3. That the code of Criminal practice be amended to stipulate that only individuals over 18 years old will be tried as adults. As a result, the executions of any individuals who were less than 18 years old when they committed the crime should be commuted to a custodial sentence.
BACKGROUND: BILATERAL
Saudi Arabia is the UK’s most important partner in the Middle East, crucial to achieving our objectives on the economy, counter-terrorism (CT), counter proliferation, regional security, energy security and climate change. It is the largest market for goods and services in the Middle East, a major investor in the UK, an important player on regional issues (including Iran and the MEPP) and a key defence and CT partner.
The bilateral relationship is in good shape overall. In April 2009 King Abdullah attended the G20 Summit held in London and later that month the Foreign Secretary visited Riyadh to attend the successful UK/Saudi Arabia Two Kingdoms Dialogue. The two visits by the Prime Minister in 2008 also deepened and broadened ties. The Prime Minister, Lord Mandleson and Ed Miliband visited Saudi Arabia from 1-2 November. The Prime Minister visited a de-radicalisation centre during this visit and met Interior Ministry officials, religious scholars, and inmates. The delegation also included 22 senior business leaders and sent a strong signal to the Saudis about the seriousness of our intent as an economic partner. In November 2008 the Saudi Foreign Minister, Prince Saud al Faisal met the Foreign Secretary in the UK to discuss the MEPP and the two have since kept in touch regularly by telephone. In October 2007 the Custodian of the Two Holy Mosques, HM King Abdullah bin Abdul Aziz undertook a very successful State Visit to the United Kingdom as the Guest of HM The Queen. In April 2009 King Abdullah attended the G20 Summit held in London.
Saudi Arabia is one of the UK’s key CT partners. The importance to Muslims of the two holy cities of Mecca and Medina gives it worldwide religious importance, and it is vital to world energy supplies. It has also faced a major terrorist threat in recent years. We welcome Saudi Arabia’s commitment to CT co-operation and are working closely with the Saudi authorities to develop a level of co-operation which is delivering practical benefits to both sides.
The United Kingdom has significant political and commercial interests in Saudi Arabia. About 20,000 UK nationals live there. Saudi Arabia is our largest export market in the region. UK exports to Saudi Arabia were about £7 billion in 2006. The UK is Saudi Arabia's joint fourth largest investor.
Energy
Saudi Arabia has the world’s largest proven oil reserves and is the world’s largest supplier of oil. Saudi Arabia holds most of OPEC’s spare capacity and is vital to oil market stability. State oil company Aramco produces around 8 million barrels per day (mbd) and has a maximum sustainable production capacity of 11.3 mbd. This will rise to 12.5 mbd once all expansion projects are completed.
In late 2008 the Ministry of Petroleum retreated from an earlier ambition to expand production capacity to 15 mbd by 2015, due to concerns over the global economy and a desire to conserve the oil wealth for future generations. The Ministry has said it will review economic developments and invest in increasing capacity if demand projections require.
Climate Change
Saudi attitudes towards climate change are evolving. Although they maintain a hard position in international negotiations they have recently become more accepting of the scientific arguments behind climate change and believe that international action is required.
Saudi Arabia’s main objective is to make oil a ‘greener’ fuel, thus ensuring continued use of fossil fuels on which their economy depends. But renewable energy options are being explored: in December 2008 Oil Minister Naimi announced an ambition that Saudi should export solar energy as well as hydrocarbons.
The Saudis have launched several low carbon initiatives, starting with the establishment in 2007 of a $300m fund for research and development into clean oil technology and carbon mitigation (Centre for Petroleum Studies and Research). They hope this will eventually develop into a $3bn fund.
In late 2008 the Ministry of Petroleum published a Carbon Management Technology Road Map that outlines mitigation plans for carbon emissions and the re-injection of carbon dioxide to enhance oil recovery. The road map matches the UK’s ambition for cooperation on Carbon Capture and Storage (CCS) technology. The UK cooperates with Saudi, Norway and Netherlands on CCS through the 4 Kingdom’s initiative.
An important objective for Saudi Arabia is to have CCS included in any post-2012 deal at this year’s UNFCCC summit in Copenhagen. The UK believes that CCS technologies will be essential to mitigating dangerous climate change in a world which will continue to use traditional energy sources for the foreseeable future. Other states have expressed concern about CCS becoming a part of the Clean Development Mechanism. Finding an acceptable resolution to this is important as failure may result in Saudi attempting to block any deal.
Two Kingdoms Dialogue
In 2005, the UK and Saudi Arabia launched the Two Kingdoms Dialogue, which was initiated by our respective Foreign Ministers to facilitate constructive dialogue between our two countries. In the past, topics have included education and the role of women in business. The fourth and most recent meeting was held in Riyadh in April 2009 and focused on the impact of the economic crisis on trade and investment flows between the UK and Saudi Arabia.
Defence
Defence links are central to the bilateral relationship. RAF aircraft were routinely based in the Kingdom until 2003, since when the military relationship has consisted of engagement in a variety of activities with the Ministry of Defence and Aviation, the Saudi Arabian National Guard and the Ministry of the Interior. Defence sales have also played an important role; the Al Yamamah Project, the world’s largest defence supply contract, has been worth over £43 Bn to the UK up to 2004. An agreement to deliver 72 Typhoon aircraft has also been agreed
