Running head: The Kingdom of Saudi Arabia

 

 

 

 

 

 

 

 

The Kingdom of Saudi Arabia: A country study

Alan A. Jones

U.S. Army-Baylor University Graduate Program

In Health and Business Administration

 

 

 

 

 

 

 


The Kingdom of Saudi Arabia: A country study

Introduction

            The Kingdom of Saudi Arabia has played a prominent role on the world scene for over seventy five years. As the homeland of the prophet Mohammad, Saudi Arabia is vital to the world’s Muslim population. In addition to its link with Islam, Saudi Arabia is the world’s leading producer of oil and home to fifteen of the nineteen terrorist who flew commercial airliners into the Trade Towers and the Pentagon on September 11, 2001. This paper will provide an overview of the Kingdom of Saudi Arabia.

Geography

Saudi Arabia is located in the Middle East and is located in the CENTCOM Area of Responsibility. The country of Saudi Arabia occupies eighty percent of the Arabian Peninsula. Saudi Arabia borders the United Arab Emirates, Oman, Yemen, Jordan, Iraq, Kuwait, and Qatar. The country is 856,355 square miles. The Kingdom’s climate is dry and hot with great extremes of temperature. The capital Riyadh, which is in the center-east of the country, has an average temperature of 108°F in July and 57°F in January. In contrast, Jeddah on the western coast has an average temperature of 88°F in July and 73°F in January. The terrain is mostly uninhabited with a great sandy desert in the southwest named the Rub' al Khali. Although the country is almost entirely desert with little plant or animal life, the coastal area of the Red Sea has extensive coral reefs which are rich in marine life. There are no permanent rivers and lakes in Saudi Arabia (Wikipedia, 2006).

 

 

Oil

Oil was discovered in Bahrain in 1932. Heavy exploration soon followed throughout the Arabian Peninsula with the discovery of the Ghawar and Safaniya oil fields in Saudi Arabia. These enormous deposits of oil were created over millions of years as a result of the Earth’s shifting tectonic plates. Saudi Arabia claims to be in possession of 260.1 billion barrels of oil reserves, about 24% of the world's proven total petroleum reserves. It ranks as the largest exporter of petroleum and plays a leading role in the Organization of the Petroleum Exporting Countries (OPEC) (Wikipedia, 2006).

Water

            In the absence of permanent rivers or bodies of water, rainfall, groundwater, desalinated seawater, and very scarce surface water must supply the country's needs. In eastern Arabia and in the Jabal Tuwayq, artesian wells and springs are plentiful. In Al Ahsa a number of large, deep pools are constantly replenished by artesian springs as a result of underground water from the eastern watershed of the Jabal Tuwayq. In Najd and the great deserts, watering places are rare and the water’s quality is poor. Modern technology has located and increased the availability of much of the underground water. Geologists have determined that very deep aquifers lie in many areas of northern and eastern Arabia and that the Wasia, the largest aquifer in Saudi Arabia, contains more water than the Persian Gulf (The Ministry of Agriculture, 2006).

            In addition to its underground water sources, Saudi Arabia uses desalination. In fact, Saudi Arabia is the world leader in desalination.  In 1994 Saudi Arabia produced 714,218,000 gallons of desalinated water per day. The water is pumped to its capital and the religious cities of Mecca and Medina, as well as pumped to sites used for agriculture (The Saudi Arabia Information Resource, 2006).

History

The peninsula has been populated for more than 5,000 years. The Dilmun culture, along the Persian 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. Except for a few major cities and oases, the harsh climate historically prevented much settlement of the Arabian Peninsula.

In 620, the beginnings of Islam were started by Mohammad. Soon after, the Arabian Peninsula became a more prominent location. 

The modern Saudi state was founded by the late King Abdul Aziz Al-Saud.

In 1932, after decades of fighting several tribes were unified to create the Kingdom of Saudi Arabia. The discovery of oil on March 3, 1938 transformed the country (Wikipedia, 2006).

Demographics

Saudi Arabia's 2005 population is estimated to be about 26.5 million; including about 5.5 million resident foreigners from India, Pakistan, Bangladesh, Indonesia, and the Philippines. Until the 1960s, most of the population was nomadic or semi nomadic; due to rapid economic and urban growth, more than 95% of the population is now settled. Some cities and oases have densities of more than 2,600 people per square mile. The cultural environment in Saudi Arabia is highly conservative; the country adheres to a strict interpretation of Islamic religious law (Shari'a). Most Saudis are ethnically Arab and speak Arabic. The country is almost 79% literate, but there exist a significant difference between the literacy rates of men and women. Approximately 85% or Saudi males are literate, but the Saudi females have a literacy rate of just 71% (CIA World Factbook, 2006).

Politics and Government

The Kingdom of Saudi Arabia is a monarchy. The monarchy traces its lineage to King Abd Al Aziz Al Saud. The Qur'an is the constitution of the country and Islamic law, Shari'a, is enforced. The State’s ideology is called Wahhabism. Wahhabism is derived from a 17th century Muslim cleric who preached a very strict interpretation of the Koran. Wahhabism was embraced by the country’s founder, Kind Saud. The executive cabinet is comprised of members of the royal family (CIA World Factbook, 2006).

Religion

The role of Islam is second to none in everyday Saudi Arabian life. In fact, the cities of Medina and Mecca give the Kingdom as much legitimacy as their oil resource. Saudi Arabia claims to be 100% Muslim, but that is because no other religion is recognized. The country is approximately 90% Sunni and 10% Shi’a. Muslim clerics play an integral role in Saudi life and are responsible for enforcing much of the law.  The role of women in Saudi Arabia is one of subservience. Women are not allowed to drive, travel alone, or do many of the everyday things women in western societies are able to do. The Saudi’s forbid any non-Muslim religious articles including; Bibles, a Rosaries, a Crosses, or even the Star of David. In fact, Jews are forbidden from entering the country. Non-Muslims are forbidden from entering Mecca or Medina which are a destination outlined in the five pillars of Islam, the Hajj. The fifth pillar of Islam, the Hajj, attracts millions of Muslim tourist each year (CIA World Factbook, 2006; Wikipedia, 2006; The Saudi Arabia Information Resource, 2006)

Economy

Saudi Arabia is an oil-based economy. Saudi Arabia ranks first in the world for proven reserves of petroleum, ranks first as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 75% of budget revenues, 40% of GDP, and 90% of export earnings. Although oil prices are expected to remain relatively high, Saudi Arabia expects to have a budget deficit in order to pay for its social programs. The government is expected to continue calling for private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities for the swelling Saudi population. Many experts say that Saudi oil will peak this century. The economic future of Saudi Arabia will present a major challenge as the population increases and the rich oil fields are depleted towards the mid to late part of this century (Wikipedia, 2006; CIA World Factbook, 2006).

Index of Economic Freedom

            The Kingdom of Saudi Arabia ranks 62nd in the world on the Heritage Foundation’s Index of Economic Freedom. With an overall score of 2.84, Saudi Arabia a mostly free economy; but the amount of government intervention and the country’s banking and finance policies present a challenge to economic opportunities and private development (The Heritage Foundation, 2006).

 

 

 

Trade and Economic Aid

            Saudi Arabia enjoys a favorable trade balance. In 2005, the Saudi’s exported $165 billion and imported $44.9 billion of goods. Among its major trading partners are the United States, Japan, Germany, South Korea, and China. While oil is the primary export, Saudi Arabia imports much of its agriculture and technology (CIA World Factbook, 2006).

            Saudi Arabia’s oil wealth has allowed it to support its agendas and Islamic support around the world. Saudi Arabia has pledged $100 million to the reconstruction of Lebanon, $307 million in support and assistance to the Palestinians, $240 million to Afghanistan, and $1 billion in pledged loans to Iraq. In addition to these economic packages, wealthy private donations have ranged from funding Madras around the world to funding terror cells around the world (CIA World Factbook, 2006; 9-11 Commission, 2003).

Health Care

Health Care System

            According to the World Health Organization (WHO), the Saudi Arabian health care system is ranked 26th in the world. Comparatively, the United States is ranked 37th. The country has a unique health care structure. Health care is provided by the government, but it is not supported by taxes. In fact, individual citizens are not taxed in Saudi Arabia. The government is able to use its oil revenues to provide health care. As with other State funded health care programs there still exists private insurance. Citizens with private insurance are able to gain faster access and have more choice. In addition to providing free health care to its citizens, Saudi Arabia provides free health care for Muslim pilgrims during the Hajj (WHO, 2006; The Saudi Arabia Information Resource, 2006)

Health Indicators and Disease

            Life Expectancy in Saudi Arabia is 71 years. The life expectancy may be attributed to the unusually difficult life on the Arabian Peninsula. The unique lifestyle may further explain why females’ life expectancy is 6 years more than males. Additional health indicators include; child mortality - 26.5 per 1000, adult mortality – 157.5 per 1000, death rate – 2.62 per 1000 (WHO, 2006).

            Meningitis is listed six times in Saudi Arabia’s top ten most deadly disease outbreaks. The millions of pilgrims who flock to Saudi Arabia each Hajj explain why the disease is so prevalent. In fact, the Meningococcal vaccine along with a polio vaccination is required for entrance into the country.  The U.S. State Department also recommends that citizens traveling to Saudi Arabia receive vaccines for; Hepatitis A, Hepatitis B, Malaria, Rabies, and Typhoid (WHO, 2006; CDC, 2006).

Armed Forces

The Saudi military has 6 branches: Army, Navy, Air Force, Air Defense Force, National Guard and the Ministry of Interior Forces. The minimum age to join is 17 and is composed of all males. The Saudi’s currently spend $18 billion a year on their military or 10% of their GDP. With an unemployment rate of almost 25%, the government uses the military to employ many of its citizens who would otherwise find themselves without a job (CIA World Factbook, 2006; Wikipedia, 2006).

 

 

Threats

            The Kingdom of Saudi Arabia faces a myriad of threats. The Ba'athist regime in Iraq was one of Saudi Arabia’s largest threats until the 2003 U.S. led invasion toppled it. In fact, the Saudi’s had requested immediate U.S. military assistance following Iraq’s invasion of Kuwait on August 2, 1990. Minor threats include; Yemenis herdsmen crossing the border and Iran with its unstable leadership. Ironically, Saudi Arabia’s largest threat emerged with the fall of the Ba'athist regime in Iraq. The threat of homegrown terrorist and anti-government groups poses the greatest military threat to Saudi Arabia. Although there is a lot of anti-Western rhetoric, Saudi Arabia is very dependent on the United States for its security needs. The country’s oil exports through the shipping lanes of the Persian Gulf are protected by the U.S. Fifth Fleet. In addition, Saudi Arabia is the largest purchaser of American armaments with over $1.1 billion in 2005 (Wikipedia, 2006).

Telecommunications

Saudi Arabia has top telecommunications technology, but in 2002 only about 12% of the population had land lines. The percentage citizens using cellular phones in 2002 was about 22%. The country has 117 broadcast stations for the countries 5.5 million viewers. In 2005, the country had 22 internet service providers which support the ever increasing internet users in the country (CIA World Factbook, 2006).

Transportation

            The transportation assets in Saudi Arabia are some of the poorest in the region. The country has approximately 1,400 km of rail, but interestingly none of the rails cross their border or joins with bordering nations’ rails. The country has 46,000 km of paved roads, but they are in poorer condition than there oil – producing peers. Saudi Arabia does have 71 paved airports and a national carrier: Saudi Arabian Airlines (Wikipedia, 2006).

Conclusion

            Saudi Arabia is a very unique country and will be very interesting to follow over the next fifty years. Saudi Arabia is a country of contradictions. A major ally of the United States, its population does not embrace America’s culture or values. Although the country provides social services to it people, its citizens do not have a voice in their government. And finally Saudi Arabia relies heavily on its oil, but with unemployment rates of 25% and the finite supply of oil Saudi Arabia is facing a fierce challenge for its future.


References

Central Intelligence Agency. (2006). The World Factbook 2006 – Saudi Arabia. [on-line]. Available: http://www.cia.gov/cia/publications/factbook/geos/sa.html

Centers for Disease Control. (2006). Saudi Arabia. [on-line]. Available: http://www.cdc.gov/travel/hajj.htm

The Heritage Foundation. (2006). Saudi Arabia. [on-line]. Available: http://www.heritage.org/research/features/index/countries.cfm

The Ministry of Agriculture. (2006). Saudi Arabia. [on-line]. Available: http://www.agrwat.gov.sa/

The Saudi Arabia Information Resource. (2006). [on-line]. Available:

http://www.saudinf.com/main/f42.htm

United States. (2004). The 9/11 Commission Report. [on-line]. Available: http://911.gnu-designs.com/TOC.html

            World Health Organization. (2006). [on-line]. Available:  http://www.who.int/countries/sau/en/

            Wikipedia. (2006). Saudi Arabia. [on-line]. Available: http://en.wikipedia.org/wiki/Saudi_Arabia

 

 

 


 

United States of America vs Kingdom of Saudi Arabia

 

Source

Year

United States

Saudi Arabia

 

 

 

 

 

Geography (sq.km)

1

2006

9.63M

1.96M

 

 

 

 

 

Demographics

 

 

 

 

Population

1

2005

295.7M

26.4M

Age Structure:

1

2005

 

 

0-14 yrs

1

 

20.6

38.2

15-64 yrs

1

 

67

59.4

65+ yrs

1

 

12.4

2.4

Population density /sq.km.

10

2005

30

9

 

 

 

 

 

Health Status

 

 

 

 

Population growth rate

1

2005

0.92%

2.31%

Birth rate

1

2005

14.1/1000

29.56/1000

Death rate

1

2005

8.2/1000

2.62/1000

Net migration rate

1

2005

3.3/1000

(3.85)/1000

Infant mortality rate

1

2005

6.5/1000

4.56/1000

Life expectancy at birth (yrs)

1

2005

77.7

77.6

Total fertility born/woman

1

2005

2.08

4.05

HIV/AIDS Prevalence Rate

1

2004

0.60%

1.00%

Literacy (age 15 read & write)

1

1997

97%

79%

UN Human Devlpmt Index

2

2002/2003

0.93

0.77

 

 

 

 

 

Quality of Life Indicators

 

 

 

 

Physicians/10,000

3

2002

25.6

12.1

Human Poverty Index

2

2002

15.8

16.9

Immunization cover measles %

2

1995-97

91

not available

Access drinkable water (urban) %

3

 

99

not available

Access excretal disposal (urban) %

3

 

85

not available

 

 

 

 

 

Costs & Financing

 

 

 

 

Index Economic Freedom (rank)

6

2005

9

62

Health expenses

3

2003

$1.7T

$15.6B

Health expenses/GNP

3

2003

15.30%

4.60%

 

 

 

 

 

Economy

 

 

 

 

GDP

1

2005

$12.37T

$340.5B

GDP real growth rate

8

2005

3.50%

6.40%

Real GDP/capita

1

2005

$41,800

$12,900

Inflation (cons prices) rate

1

2005

3.20%

0.60%

Stock Market change (DJI)

 

2005

-0.10%

 

Unemployment rate

1

2005

5.10%

5.70%

 

 

 

 

 

Armed Forces

 

 

 

 

Defense expenditures

1

2005

$400.0B

$18B

Defense expenditures/GDP

1

2005

3.70%

10.00%

Personnel end strength act

9

2005/2004

1.39M

124500*

Personnel end strength res

9

2004

1.16M

100000*

 

 

 

 

*Library of Congress - country profile

Politics & Elections

 

 

 

 

Type of Government

1

2004

Federal Republic

 Monarchy

Government

1

2004

50 states

13 provinces

Executive Br

1

2004

president

King

Legislative Br

1

2004

bicameral

unicameral

Elections

1

2004

4 yrs (2004)

4 yrs (2005) *hold no real power

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

CIA WorldFactBook

1

 

 

 

UNDP Human Develop Index

2

 

 

 

PAHO country health profile

3

 

 

 

World Bank

4

 

 

 

Inter-American Development Bank

5

 

 

 

StockholmIntPeaceResIns (SIPRI)

6

 

 

 

Index Economic Freedom

7

 

 

 

International Monetary Fund

8

 

 

 

Military Balance

9

 

 

 

Wikipedia

10

 

 

 

 

           

 

 

 

 

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