Background:  Saudi Arabia is the birthplace of Islam and home to Islam's two holiest shrines in Mecca and Medina. The king's official title is the Custodian of the Two Holy Mosques. The modern Saudi state was founded in 1932 by ABD AL-AZIZ bin Abd al-Rahman AL SAUD (Ibn Saud) after a 30-year campaign to unify most of the Arabian Peninsula. A male descendent of Ibn Saud, his son ABDALLAH bin Abd al-Aziz, rules the country today as required by the country's 1992 Basic Law. Following Iraq's invasion of Kuwait in 1990, Saudi Arabia accepted the Kuwaiti royal family and 400,000 refugees while allowing Western and Arab troops to deploy on its soil for the liberation of Kuwait the following year. The continuing presence of foreign troops on Saudi soil after the liberation of Kuwait became a source of tension between the royal family and the public until all operational US troops left the country in 2003. Major terrorist attacks in May and November 2003 spurred a strong on-going campaign against domestic terrorism and extremism. King ABDALLAH has continued the cautious reform program begun when he was crown prince. To promote increased political participation, the government held elections nationwide from February through April 2005 for half the members of 179 municipal councils. In December 2005, King ABDALLAH completed the process by appointing the remaining members of the advisory municipal councils. The country remains a leading producer of oil and natural gas and holds approximately 25% of the world's proven oil reserves. The government continues to pursue economic reform and diversification, particularly since Saudi Arabia's accession to the WTO in December 2005, and promotes foreign investment in the kingdom. A burgeoning population, aquifer depletion, and an economy largely dependent on petroleum output and prices are all ongoing governmental concerns.

Location:  Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen

Geographic coordinates:  25 00 N, 45 00 E

Area:   total: 2,149,690 sq km
land: 2,149,690 sq km
water: 0 sq km 

Climate:  harsh, dry desert with great temperature extremes

Natural resources:  petroleum, natural gas, iron ore, gold, copper

Population:  27,601,038
note: includes 5,576,076 non-nationals (July 2007 est.)

Ethnic groups:  Arab 90%, Afro-Asian 10%

Religions:  Muslim 100%

Languages:  Arabic

Capital name:  Riyadh

Administrative divisions:  13 provinces (mintaqat, singular - mintaqah); Al Bahah, Al Hudud ash Shamaliyah, Al Jawf, Al Madinah, Al Qasim, Ar Riyad, Ash Sharqiyah (Eastern Province), 'Asir, Ha'il, Jizan, Makkah, Najran, Tabuk

National holiday:  Unification of the Kingdom, 23 September (1932)

Flag description:  green, a traditional color in Islamic flags, with the Shahada or Muslim creed in large white Arabic script (translated as "There is no god but God; Muhammad is the Messenger of God") above a white horizontal saber (the tip points to the hoist side); design dates to the early twentieth century and is closely associated with the Al Saud family which established the kingdom in 1932

Political parties and leaders:  none

Economy - overview:  Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses 25% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector. Roughly 5.5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors. The government is encouraging private sector growth to lessen the kingdom's dependence on oil and to increase employment opportunities for the swelling Saudi population. The government is promoting private sector and foreign participation in the power generation, telecom, natural gas, and petrochemical industries. As part of its effort to attract foreign investment and diversify the economy, Saudi Arabia acceded to the WTO in December 2005 after many years of negotiations. With high oil revenues enabling the government to post large budget surpluses, Riyadh has substantially boosted spending on job training and education, infrastructure development, and government salaries. The government has announced plans to establish six "economic cities" in different regions of the country to promote development and diversification.