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Saudi Arabia
Size: 2,331,000 square kilometers.
Population: 19.5 million


The Saudi royal family is facing the biggest challenge to its rule since it founded the desert kingdom nearly seven decades ago. Saudi King Fahd is incapacitated and a succession struggle has ensued. At the same time, the Saudi royal family appears to face increasing Islamic unrest. The crisis is compounded by a renewed Saudi budget deficit, prompted by low oil prices. The result has been a decrease in military procurement.

Riyad has sought to increase stability by launching cooperation with its neighbors. Riyad and Iran signed a security cooperation pact in 2001 and the Saudis want to bolster defense of the Gulf Cooperation Council states. Relations with the United States could determine the direction of the Saudi regime. Washington seeks to sign multi-billion dollar projects to develop Saudi's natural gas fields and revive the economy.


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