Saudi Arabia

Political condition

Saudi Arabia is an absolute monarchy, although, according to the Basic

Law of Saudi Arabia adopted by royal decree in 1992, the king must
comply with Sharia (that is, Islamic law) and the Qur'an. The Qur'an and
the Sunnah are declared to be the country's constitution

social condition

Saudi Arabia’s population has traditionally been composed of nomads,

villagers, and townspeople. Pervading this triad, however, is the
patrilineal kinship principle, and superimposed on all is the
administrative organization centred on the royal family. The kinship
principle is pervasive in Saudi society, and the extended family is a
strong social unit. Villages constitute local service centres and contain
members from more than one tribal affiliation, though one group may
tend to be dominant. Cities are not tribally organized, though the
importance of kinship affiliation endures, and local affairs tend to be
dominated and administered by a few families. Social stratification is
more clearly developed in the cities than elsewhere.

Economic condition

Saudi oil reserves are the second largest in the world, and Saudi Arabia
is the world's leading oil exporter and second largest producer. Proven
reserves, according to figures provided by the Saudi government, are
estimated to be 260 billion barrels (41 km3), which is about one-
quarter of world oil reserves. Petroleum in Saudi Arabia is not only
plentiful but under pressure and close to the earth's surface. This
makes it far cheaper and thus far more profitable to extract petroleum
in Saudi Arabia than in many other places. The petroleum sector
accounts for roughly 87% of Saudi budget revenues, 90% of export
earnings, and 42% of GDP. Saudi Arabia's oil reserves and production
are largely managed by the state-owned corporation Saudi Aramco.

Another 40% of GDP comes from the private sector. An estimated 7.5
(2013) million foreigners work legally in Saudi Arabia, playing a crucial
role in the Saudi economy, for example, in the oil and service sectors.
The government has encouraged private sector growth for many years
to lessen the kingdom's dependence on oil, and to increase
employment opportunities for the swelling Saudi population. In recent
decades the government has begun to permit private sector and
foreign investor participation in sectors such as power generation and
telecom, and acceded to the WTO. During much of the 2000s, high oil
prices enabled the government to post budget surpluses, boost
spending on job training and education, infrastructure development,
and government salaries.

With its absolute monarchy system of government, large state sector

and supply of welfare benefits, the Saudi economy has been described
as
a bewildering (at least to outsiders) combination of a feudal fealty
system and a more modern political patronage one. At every level in
every sphere of activity, Saudi's maneuver through life manipulating
individual privileges, favors, obligations, and connections. By the same
token, the government bureaucracy is a maze of overlapping or
conflicting power center under the patronage of various royal princes
with their own priorities and agendas to pursue and dependents to
satisfy.