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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