From the Foundation to the Present Day
The new kingdom was one of the poorest countries in the world, reliant on limited agriculture and pilgrimage revenues. However, in 1938 vast reserves of oil were discovered in the Al-Hasa region along the coast of the Persian Gulf and full-scale development of the oil fields began in 1941 under the US-controlled Aramco (Arabian American Oil Company). Oil provided Saudi Arabia with economic prosperity and substantial political leverage internationally. Cultural life rapidly developed, primarily in the Hejaz, which was the center for newspapers and radio. But the large influx of foreigners to work in the oil industry increased the pre-existing propensity for xenophobia. At the same time, the government became increasingly wasteful and extravagant. By the 1950s this had led to large governmental deficits and excessive foreign borrowing.
King Saud succeeded to the throne on his father's death in 1953. However, an intense rivalry between the King and his half-brother, Prince Faisal emerged, fueled by doubts in the royal family over Saud's competence. As a consequence, Saud was deposed in favor of Faisal in 1964. Saudi Arabia gained control of a proportion (20%) of Aramco in 1972, thereby decreasing US control over Saudi oil. In 1973, Saudi Arabia led an oil boycott against the Western countries that supported Israel in the October War against Egypt and Syria. Oil prices quadrupled. Faisal was assassinated in 1975 by his nephew, Prince Faisal bin Musaid and was succeeded by his half-brother King Khalid.
By 1976 Saudi Arabia had become the largest oil producer in the world. Khalid's reign saw economic and social development progress at an extremely rapid rate, transforming the infrastructure and educational system of the country; in foreign policy, close ties with the US were developed. In 1979, two events occurred which greatly concerned the Al Saud regime, and had a long-term influence on Saudi foreign and domestic policy. The first was the Iranian Islamic Revolution. It was feared that the country's Shi'ite minority in the Eastern Province (which is also the location of the oil fields) might rebel under the influence of their Iranian co-religionists. In fact, there were several anti-government uprisings in the region in 1979 and 1980. The second event, was the seizure of the Grand Mosque in Makkah by Islamist extremists. The militants involved were in part angered by what they considered to be the corruption and un-Islamic nature of the Saudi regime. The government regained control of the mosque after 10 days and those captured were executed. Part of the response of the royal family was to enforce a much stricter observance of traditional religious and social norms in the country (for example, the closure of cinemas) and to give the Ulema a greater role in government. Neither entirely succeeded as Islamism continued to grow in strength.
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In 1980 Saudi Arabia took full control of Aramco from the US.
King Khalid died of a heart attack in June 1982, and was succeeded by his brother, King Fahd, who added the title "Custodian of the Two Holy Mosques" to his name in 1986. Fahd continued to develop close relations with the United States and increased the purchase of American and British military equipment. The vast wealth generated by oil revenues was beginning to have an even greater impact on Saudi society. It led to rapid modernisation, urbanization, mass public education, and the creation of new media. This and the presence of increasingly large numbers of foreign workers greatly affected traditional Saudi norms and values. Although there was dramatic change in the social and economic life of the country, political power continued to be monopolized by the royal family leading to discontent among many Saudis who began to look for wider participation in government.
In the 1980s, the Saudi regime spent $25 billion in support of Saddam Hussein in the Iran-Iraq War. However, Saudi Arabia condemned the Iraqi invasion of Kuwait in 1990 and asked the US to intervene. King Fahd allowed American and coalition troops to be stationed in Saudi Arabia. He invited the Kuwaiti government and many of its citizens to stay in Saudi Arabia, but expelled citizens of Yemen and Jordan because of their governments' support of Iraq. In 1991, Saudi Arabian forces were involved both in bombing raids on Iraq and in the land invasion that helped to liberate Kuwait.
The Saudi regime's relations with the West began to cause growing concern among some of the ulema and students of sharia law and was one of the issues that led to an increase in Islamic terrorism in Saudi Arabia, as well as Islamic terrorist attacks in Western countries by Saudi nationals. Osama bin Laden was a Saudi national (until stripped of his nationality in 1994). 15 of the 19 hijackers involved in 9/11 attacks on New York, Washington and Virginia were Saudi nationals. Many Saudis, who did not in any way support the Islamist terrorists were nevertheless deeply unhappy with the Saudi regime's policies.
Islamism was not the only source of hostility to the regime. Although now extremely wealthy, Saudi Arabia's economy was near stagnant. High taxes and a growth in unemployment have contributed to discontent, and has been reflected in a rise in civil unrest, and discontent with the royal family. In response, a number of limited "reforms" were initiated by King Fahd. In March 1992, he introduced the "Basic Law)" which emphasised the duties and responsibilities of a ruler. In December 1993 the Consultative Council was inaugurated. It is composed of a chairman and 60 members - all chosen by the king. The King's intent was to respond to dissent while making as few actual changes in the status quo as possible. Fahd made it clear that he did not have democracy in mind: "A system based on elections is not consistent with our Islamic creed, which [approves of] government by consultation [shūrā]."
In 1995, Fahd suffered a debilitating stroke and the Crown Prince, Abdullah assumed the role of de facto regent, taking on the day-to-day running of the country. However, his authority was hindered by conflict with Fahd's full brothers (known, with Fahd, as the "Sudairi Seven"). From the 1990s, signs of discontent continued and included, in 2003 and 2004, a series of bombings and armed violence in Riyadh, Jeddah, Yanbu and Khobar. In February–April 2005, the first-ever nationwide municipal elections were held in Saudi Arabia. Women were not allowed to take part in the poll.
In 2005, King Fahd died and was succeeded by Abdullah, who continued the policy of minimum reform and clamping down on protests. The king introduced a number of economic reforms aimed at reducing the country's reliance on oil revenue: limited deregulation, encouragement of foreign investment, and privatization. In February 2009, Abdullah announced a series of governmental changes to the judiciary, armed forces, and various ministries to modernize these institutions including the replacement of senior appointees in the judiciary and the Mutaween (religious police) with more moderate individuals and the appointment of the country's first female deputy minister.
On 29 January 2011, hundreds of protesters gathered in the city of Jeddah in a rare display of criticism against the city's poor infrastructure after deadly floods swept through the city, killing eleven people. Police stopped the demonstration after about 15 minutes and arrested 30 to 50 people.
In 2011 and 2012 Saudi Arabia was affected by its own Arab Spring protests. In response, King Abdullah announced a series of benefits for citizens amounting to $10.7 billion. No political reforms were announced as part of the package, though some prisoners indicted for financial crimes were pardoned. Although male-only municipal elections were held on 29 September 2011 Abdullah announced that women will be able to vote and be elected in the 2015 municipal elections, and also to be nominated to the Shura Council.
