Government

 

Obama and King Abdullah.

The central institution of the Saudi Arabian government is the Saudi monarchy. The Basic Law of Government adopted in 1992 declared that Saudi Arabia is a monarchy ruled by the sons and grandsons of the first king, Abd Al Aziz Al Saud. It proclaims that the Qur'an is the constitution of the country, which is governed on the basis of the Sharia (Islamic Law). According to The Economist's Democracy Index, the Saudi government is the seventh most authoritarian regime from among the 167 countries rated.

There are no recognized political parties or national elections, except for one local elections which were held in the year 2005 when participation was reserved for male citizens only. The king's powers are theoretically limited within the bounds of Shari'a and other Saudi traditions. He also must retain a consensus of the Saudi royal family, religious leaders (ulema), and other important elements in Saudi society. The Saudi government spreads Islam by funding construction of mosques and Qur'an schools around the world. The leading members of the royal family choose the king from among themselves with the subsequent approval of the ulema.

Saudi kings have gradually developed a central government. Since 1953, the Council of Ministers, appointed by the king, has advised on the formulation of general policy and directed the activities of the growing bureaucracy. This council consists of a prime minister, the first prime minister and twenty ministers. Legislation is by resolution of the Council of Ministers, ratified by royal decree, and must be compatible with the Shari'a. A 150-member Consultative Assembly, appointed by the King, has limited legislative rights. Justice is administered according to the Shari'a by a system of religious courts whose judges are appointed by the king on the recommendation of the Supreme Judicial Council, composed of twelve senior jurists. Independence of the judiciary is protected by law. The king acts as the highest court of appeal and has the power to pardon. Access to high officials (usually at a majlis; a public audience) and the right to petition them directly are well-established traditions.

The combination of relatively high oil prices and exports led to a revenues windfall for Saudi Arabia during 2004 and early 2005. For 2004 as a whole, Saudi Arabia earned about $116 billion in net oil export revenues, up 35% from 2003 revenue levels.

For fiscal year 2004, Saudi Arabia originally had been expecting a budget deficit. However, this was based on an extremely conservative price assumption of $19 per barrel for Saudi oil and an assumed production of 7.7 Mbbl/d (1,220,000 m3/d). Both of these estimates turned out to be far below actual levels. As a result, as of mid-December 2004, the Saudi Finance Ministry was expecting a huge budget surplus of $26.1 billion, on budget revenues of $104.8 billion (nearly double the country's original estimate) and expenditures of $78.6 billion (28 percent above the approved budget levels). This surplus is being used for several purposes, including: paying down the Kingdom's public debt (to $164 billion from $176 billion at the start of 2004); extra spending on education and development projects; increased security expenditures (possibly an additional $2.5 billion dollars in 2004; see below) due to threats from terrorists; and higher payments to Saudi citizens through subsidies (for housing, education, health care, etc.).