Modern Saudi Arabia was formed in 1932 when Abdul Aziz bin Abdul   

  Rahman Al Saud united different regions of the Arabian Peninsula into one

  nation. On 23 Semptember 1932, Abdul Aziz was proclaimed King. All of

  Saudi Arabia's rulers since 1932 have been descendants of Ibn Saud.  

  During his rule, King Abdul Aziz laid the foundations for the modernization

  of his country. He began to build the country's infrastructure, first establishing

  roads and basic communications systems, and later introducing modern

  technology and improving education, health  care and agriculture.

  In November 1953, King Abdul Aziz died and was succeeded by his eldest  

  son, Crown Prince saud bin Abdul Aziz Al-Saud. The new King's brother,

  Faisal bin abdul Aziz, was named Crown Prince. King Saud established the  

  Council of Ministers and the Minitries of Health, Education and Commerce.

  The Crown Prince became King Faisal in 1964. to deepen links between Islamic

   nations, he traveled throughout  the Arab and Islamic world.

  In 1975, King Faisal was assassinated by his nephew, Faisal bin Musa'id  

  bin Abdul Aziz. He was succeeded by his brother, King Khalid bin Abdul

  Aziz whose reign lasted until 1982, when he died of a heart attack. His

  brother, Fahd, who had been made Crown Prince on King Faisal's death,

  succeeded him. In 1986, King Fahd stopped using the title 'His Majesty'

  and took the title 'Custodian of the Two Holy  Mosques'. Since 1996,

  Crown Prince Abdullah has increasingly taken on more responsibility after

  King Fahd suffered a stroke.

  POLITICS

  Recent Political Developments

  Saudi Arabia is a monarchy with a political system rooted  in Islamic  

  Sharia law. The monarchy is the same family as the founder of modern   

  day Saudi Arabia. King Fahd, the Head of State, is also the Prime Miniter

  and nominates a Council of Ministers. His half-brother, Prince Abdullah,

  is the Crown Prince. Other members of the King's close family hold

  important roles, including Prince Sultan, Second Deputy Prime Minister

  and Prime Minister of Defence; and Prince Naif, Minister of Interior.

  Between 1992 and 1993, King Fahd introduced a number of political

  reforms, including the establishment in 1993 of  a Consultative Council,

  the Majlis A-Shura. It has 120 members selected  by King Fahd, excluding

  Princes or serving Ministers. The Council's role is to formalize existing

  political arrangements and debate new political legislation or social

  developments.

  In January 2003, Crown Prince Abdullah set out proposals for "self reform, 

  and the promotion of political participation" in the Arab world. A few days

  later he received a petition signed by 120 people which called for reform

  excluding: election of members to the Shura council and regional

  assemblies; an independent judiciary; freedom of speech and association;

  the development of civil society and increased human rights; a greater

  public role for women; and a national forum for open discussion.

  ELECTIONS

  As part of his  reform process, Crown Prince Abdullah announced in

  October 2003 the plan to hold municipal elections for half of  the members

  of municipal councils. These will be the first elections to a government

  body in Saudi Arbia.

  ECONOMY

  Saudi Arabia has far the largest of the Arab economies. It has the largest

  proven oil reserves in the world (more than 25%). Its economy is vulnerable

  to its fluctuations in the oil price and remains very dependent on the oil

  income. Per capita GDP has remained constant over the last decade with a

  large increase in the last two years. The rapidly increasing population highlights

  the need for the labor market to create more jobs of young Saudi's. To support

  this, the government has implemented a policy called 'Saudisation' whereby an 

  increasing percentage of jobs in private sectors companies with over 20

  employees in Saudi Arabia must be filled by Saudi nationals.

  Oil was discovered in Saudi Arabia in 1938, and production began under

  the then US-controlled and now nationalized Saudi Aramco (Arabian  American

  Oil Company). Saudi Aramco is one of the largest oil companies in the world.

  Saudi Arabia was one of the five founding members of the organization of

  Petoleum Exporting Countries (OPEC). Over the last two years OPEC has played

  a significant role in maintaining oil market stability. Saudi Arabia has helped

  achieved this by increasing its oil production when necessary in order to keep

  the oil price within a $22-$28 price band.

  Crown Prince Abdullah has encourage economic reform by opening some 

  sectors of the economy, such as the gas industry, to investment by foreign  

  companies. Saudi Arabia has applied to join the World Trade Oraganisation

  and is in the  process of negotiating the terms of its entrance.

  Notes come in  denominations of SR. 1, 5, 10, 20, 50, 100, 200 and 500.

  Coins come in denominations of 5, 10, 25, and 50 halala