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IB93113
Saudi Arabia: Current Issues and U.S. Relations
May 16, 2003

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U.S. Department of State

Summary:

Saudi Arabia, a monarchy ruled by the Saudi dynasty, enjoys special importance in the international community because of its unique association with the Islamic religion and its oil wealth. Since the establishment of the modern Saudi kingdom in 1932, it has benefitted from a stable political system based on a smooth process of succession to the throne and an increasingly prosperous economy dominated by the oil sector. Decrees by King Fahd in March 1992 establishing an appointive consultative council and provincial councils and promulgating a basic law providing for certain citizens' rights could signal a gradual trend toward a more open political system. The United States and Saudi Arabia have long-standing economic and defense ties. A series of informal agreements, statements by successive U.S. administrations, and military deployments have demonstrated a strong U.S. security commitment to Saudi Arabia. Saudi Arabia was a key member of the allied coalition that expelled Iraqi forces from Kuwait in 1991. Saudi Arabia continues to host U.S. aircraft enforcing the no-fly zone over southern Iraq; however, Saudi Arabia has not offered the use of its territory for major air strikes against Iraq in response to Iraqi obstruction of U.N. weapons inspections in recent years. Moreover, Saudi officials have expressed opposition to the U.S.-led military campaign launched against Iraq in March 2003, although they reportedly are permitting certain support operations by U.S. and British military forces, as well as making some facilities available to them. Bombing attacks against several U.S. operated installations in Saudi Arabia have raised some concerns about security of U.S. personnel and further security measures have been implemented. Saudi Arabia convicted and executed four Saudi nationals for carrying out a bombing in 1995. After extended investigations, on June 21, 2001, a U.S. federal grand jury indicted 14 members of Middle East terrorist organizations for a bombing in 1996, but none of them is in U.S. custody. A third bombing occurred on May 12, 2003, when suicide bombers attacked three housing compounds inhabited by U.S. and other western personnel, killing an estimated 34 people including as many as eight U.S. citizens. U.S. officials have cited Saudi support in the aftermath of the September 11, 2001 attacks, including intelligence sharing, law enforcement activities, and tracking of terrorist financing. Some commentators maintain that Saudi domestic and foreign policies have created a climate that may have contributed to terrorist acts by Islamic radicals. Saudi officials reject this viewpoint and maintain that they are working with the United States to combat terrorism. Other principal issues of bilateral interest include the Saudi position on the Arab-Israeli conflict, security in the post-war Gulf region, arms transfers to Saudi Arabia, Saudi external aid programs, bilateral trade relationships, and Saudi policies involving human rights and democracy. In early 2002, Crown Prince Abdullah proposed a peace initiative based on Israeli withdrawal from occupied territories in return for normal relations between Arab states and Israel.

 

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