Fall Of House Of Saudi

The Fall of The House of Saud 1

Running head: THE FALL OF THE HOUSE OF SAUD

The Fall of the House of Saud

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The Fall of The House of Saud 2

Abstract

The US has over a long period of time viewed Saudi Arabia as the trustee partner in the Middle

East and a source of cheap oil. Saudi Arabian is also the pillar of political stability within the

Middle East and in a source of lucrative business venture between the two nations .There arises a

conflict of interest since Saudi Arabia is governed by a dysfunctional royal family which is

believed to militant Islamic groups outside its borders with the aim of keeping them from within

its state.

Explain the nature of the US/ Saudi Arabian relationship.

Saudi Arabia and the United States have been in a close relationship for long. They have this

close relationship due to the presence of oil in Saudi Arabia that the US needs very much. As

America advances in the production of oil, the United States needs Saudi Arabia more than ever

before. This relationship between Saudi Arabia and US is becoming a huge problem. This is

because US is very different from Saudi Arabia in the sense that Saudi Arabia has a monarchy

type of government where opposition of the ruling family is a criminal matter.US on the other

hand is a constitutional republic. This brought some misunderstanding when restoring Middle

Eastern peace. King Abdulla of Saudi Arabia wanted the use of force while President Obama

wanted the use of pro-democracy in restoring this peace. This two countries have always had

great misunderstanding though US puts up with Saudi Arabia due to their need of oil in Saudi

Arabia which is the largest producer of oil. Recently there was discovery of oil in US and they

therefore hope that their alliance with Saudi Arabia s will soon not be necessary.

The Fall of The House of Saud 3

Saudi Arabia’s relationship to the world’s economy.

The economy of Saudi Arabia is strongly dependent on oil. It prides itself to have the largest

economy in the Arab world. Saudi Arabia is the world largest exporter of petroleum and has the

second largest exporter of petroleum reserves, with the fifth largest known proven gas reserves

for a long period of time, Saudi Arabia wanted to be part of the World Trade Organization. This

was dependent on how much Saudi Arabia was willing to open up its market to goods and

services from other nations. In view of the above, the Saudi government formed the Saudi

Arabian General Investment Authority with the sole mandate of persuading foreign direct

investment into the kingdom. In November 2005, Saudi Arabia was approved to enter the World

Trade Organization and became a full member on 11

December 2005.This was after opening up

sectors such as insurance, telecommunication and power transmission.

Saudi Arabia is also a founding member of the organization of the Petroleum Exporting

Countries (OPEC) which controls about 44% of the world oil production. This has had negative

effect on the world’s economy since OPEC has a major influence on global oil prices. Before

OPEC was established, the world oil prices were determined by American dominated

multinational oil companies.

Saudi Arabia long term oil pricing policy has been to ensure that the global oil prices continue

being stable. This ensures moderation of prices meaning not selling at high prices this may lead

to an increase in the demand of alternative sources of energy and high enough to maximize on

revenue. Stabilization prices is beneficial to Saudi Arabia since the economy of western

countries where most of its financial assets are situated will not be compromised and

considering that the same countries do provide the kingdom politically and offer military

support.

The Fall of The House of Saud 4

Given the nature of the relationship between the Saudi royal family, Wahabi extremists

American Industrialists and American politicians, is the US/Saudi Arabian relationship a good

one?

The major problem with US is that it’s not only fighting their financial supporters and terrorists

but it’s also fighting the intrusion of Wahhabism in America which is a threat to their lives and

also their security. The US has also failed to develop a political strategy for diminishing the

ideology of Islamic terrorism in America. Riyadh is the main financial supporter of Islamic

extremists. Saudi Arabia is the main source of financing for Al-Qaeda and this terrorist group

ideas were initially derived from Wahhabism. Therefore they don’t have a good relationship due

to the presence of this terrorist group that has attacked US severally. Affecting its economy and

also its political stability. The administration should therefore approach this situation so as to be

effective in the war against terrorism.

Is there an acceptable level of explanation in order to maintain the American lifestyle?

Both the United States of America and Saudi Arabia have benefited from their partnership over

the years, the US has a steady supply of affordable oil. Oil companies in the US have their

footing in the Kingdom. Saudi Arabia has benefited from the military support it receives

annually from the US.

The partnership between the two nations has had its negative effects. The cordial relationship has

turned the US to be a target of militant. Islamic groups for instance the Wahabi. Us has been

attacked severally and thus has affected the lifestyle of its people. To the militant groups, the US

is the enemy and must be destroyed. Civil rights of the US citizens have been infringed upon as

the security within its borders is intensified.

The Fall of The House of Saud 5

References

J.A Kechichian (1990); Islamic Revivalism and Change in Saudi Arabia.

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