About Saudi Arabia
The Kingdom of Saudi Arabia, KSA  is an Arab country and the largest country of the Arabian Peninsula. It is bordered by Jordan on the northwest, Iraq on the north and northeast, Kuwait, Qatar, Bahrain, and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south. The Persian Gulf lies to the northeast and the Red Sea to its west. It has an estimated population of 27.6 million, and its size is approximately 2,150,000 square km (830,000 square miles).

The Kingdom is sometimes called "The Land of The Two Holy Mosques" in reference to Mecca and Medina, the two holiest places in Islam. In English, it is most commonly referred to as Saudi Arabia. The Kingdom was founded by Abdul-Aziz bin Saud, whose efforts began in 1902 when he captured the Al-Saud’s ancestral home of Riyadh, and culminated in 1932 with the proclamation, and recognition of the Kingdom of Saudi Arabia.

Saudi Arabia is the world's leading petroleum exporter. Petroleum exports fuel the Saudi economy. Oil accounts for more than 90 percent of exports and nearly 75 percent of government revenues, facilitating the creation of a welfare state, which the government has found difficult to fund during periods of low oil prices.

History
Although the region in which the country stands today has an ancient history, the emergence of the Saudi dynasty began in central Arabia in 1744. That year, Muhammad ibn Saud, the ruler of the town of Ad-Dir'iyyah near Riyadh, joined forces with a cleric, Muhammad ibn Abd-al-Wahhab, to create a new political entity. This alliance formed in the 18th century remains the basis of Saudi Arabian dynastic rule today. Over the next 150 years, the fortunes of the Saud family rose and fell several times as Saudi rulers contended with Egypt, the Ottoman Empire, and other Arabian families for control on the peninsula (see First Saudi State and Second Saudi State). The third and current Saudi state was founded in the early 20th century by King Abdul Aziz Al-Saud (known internationally as Abdul Aziz Ibn Saud).

In 1902 at the age of only 22, Abdul Aziz Ibn Saud re-captured Riyadh, the Al-Saud dynasty's ancestral capital, from the rival Al Rashid family. Continuing his conquests, Abdul Aziz subdued Al-Hasa, Al-Qatif, the rest of Nejd, and Hejaz between 1913 and 1926. On January 8, 1926 Abdul Aziz bin Saud became the King of Hejaz. On January 29, 1927 he took the title King of Nejd (his previous Nejdi title was Sultan). By the Treaty of Jeddah, signed on May 20, 1927, the United Kingdom recognized the independence of Abdul Aziz's realm, then known as the Kingdom of Nejd and Hejaz. In 1932, the principal regions of Al-Hasa, Qatif, Nejd and Hejaz were unified to form the Kingdom of Saudi Arabia.

Abdul Aziz's military and political successes were not mirrored economically until vast reserves of oil were discovered in March 1938. Development programmes, which were delayed due to the onset of the Second World War in 1939, began in earnest in 1946 and by 1949 production was in full swing. Oil has provided Saudi Arabia with economic prosperity and a great deal of leverage in the international community.

Prior to his death in 1953 Abdul Aziz, aware of the difficulties facing other regional absolute rulers reliant on extended family networks, attempted to regulate the succession.

Saud succeeded to the throne on his father's death in 1953. However, by the early 1960s the Kingdom was in jeopardy due to Saud's economic mismanagement and failure to deal effectively with a regional challenge from Egyptian president Gamal Abdel Nasser. As a consequence Saud was deposed in favour of Faisal in 1964.

Intra-family rivalry was one of the factors that led to the assassination of Faisal by his nephew, Prince Faisal bin Musa'id, in 1975. He was succeeded by King Khalid until 1982 and then by King Fahd. When Fahd died in 2005, his half-brother Abdullah ascended to the throne.

Geography
The kingdom occupies about 80 percent of the Arabian Peninsula. In 2000 Saudi Arabia and Yemen signed an agreement to settle their long-running border dispute. A significant length of the country's southern borders with the United Arab Emirates, and Oman, are not precisely defined or marked, so the exact size of the country remains unknown. The Saudi government's estimate is 2,217,949 km² (856,356 miles²). Other reputable estimates vary between 1,960,582 km² (756,934 mi²) and 2,240,000 km² (864,869 mi²). The kingdom is commonly listed as the world's 14th largest state.

Saudi Arabia's geography is varied. From the western coastal region (Tihamah), the land rises from sea level to a peninsula-long mountain range (Jabal al-Hejaz) beyond which lies the plateau of Nejd in the center. The southwestern 'Asir region has mountains as high as 3,000 m (9,840 ft) and is known for having the greenest and freshest climate in all of the country, one that attracts many Saudis to resorts such as Abha in the summer months. The east is primarily rocky or sandy lowland continuing to the shores of the Persian Gulf. The geographically hostile Rub' al Khali ("Empty Quarter") desert along the country's imprecisely defined southern borders contains almost no life.

Mostly uninhabited, much of the nation's landmass consists of desert and semi-arid regions, with a dwindling traditional Bedouin population. In these parts of the country, vegetation is limited to weeds, xerophytic herbs and shrubs. Less than two percent of the kingdom's total area is arable land. Population centers are mainly located along the eastern and western coasts and densely populated interior oases such as Hofuf and Buraydah. In some extended areas, primarily the Rub' al-Khali and the Arabian Desert, there is no population whatsoever, although the petroleum industry is constructing a few planned communities there. Saudi Arabia has no permanent year-round rivers or lakes; however, its coastline extends for 2640 km (1640 miles) and, on the Red Sea side, offers world-class coral reefs, including those in the Gulf of Aqaba.

Native animals include the ibex, wildcats, baboons, wolves, and hyenas in the mountainous highlands. Small birds are found in the oases. The coastal area on the Red Sea with its coral reefs has a rich marine life.

Climate
Extreme heat and aridity are characteristic of most of Saudi Arabia. It is one of the few places in the world where summer temperatures above 50 °C (122 °F) have been recorded,[citation needed] 51.7 °C (124 °F) being the highest ever recorded temperature. In winter, frost or snow can occur in the interior and the higher mountains, although this only occurs once or twice in a decade. Lowest ever recorded temperature is -12.0 °C recorded at Turaif. The average winter temperature range is 8° to 20 °C (47° to 68 °F) in January in interior cities such as Riyadh and 19° to 29 °C (66° to 83 °F) in Jeddah on the Red Sea coast. The average summer range in July is 27° to 43 °C (81° to 109 °F) in Riyadh and 27° to 38 °C (80° to 100 °F) in Jeddah. Nighttime temperatures in the central deserts can be famously chilly even in summer, as the sand gives up daytime heat rapidly once the sun has set. Annual precipitation is usually sparse (up to 100 mm or 4 inches in most regions), although sudden downpours can lead to violent flash floods in wadis. Annual rainfall in Riyadh averages 100 mm (4 inches) and falls almost exclusively between January and May; the average in Jeddah is 54 mm (2.1 inches) and occurs between November and January.

Economy
Saudi Arabia's economy is petroleum-based; roughly 75% of budget revenues and 90% of export earnings come from the oil industry. The oil industry comprises about 45% of Saudi Arabia's gross domestic product, compared with 40% from the private sector (see below). Saudi Arabia officially has about 260 billion barrels (4.1×1010 m3) of oil reserves, comprising about 24% of the world's proven total petroleum reserves.

The government is attempting to promote growth in the private sector by privatizing industries such as power and telecom. Saudi Arabia announced plans to begin privatizing the electricity companies in 1999, which followed the ongoing privatization of the telecommunications company. Shortages of water and rapid population growth may constrain government efforts to increase self-sufficiency in agricultural products.

In the 1990s, Saudi Arabia experienced a significant contraction of oil revenues combined with a high rate of population growth. Per capita income fell from a high of $11,700 at the height of the oil boom in 1981 to $6,300 in 1998. Recent oil price increases have helped boost per capita GDP to $17,000 in 2007 dollars, or about $7,400 adjusted for inflation.

Recent oil price increases have triggered a second oil boom, pushing Saudi Arabia's budget surplus to $28 billion (110SR billion) in 2005. Tadawul (the Saudi stock market index) finished 2004 with a massive 76.23% to close at 4437.58 points. Market capitalization was up 110.14% from a year earlier to stand at $157.3 billion (589.93SR billion), which makes it the biggest stock market in the Middle East.‏

OPEC limits its members' oil production based on their "proven reserves." The higher their reserves, the more OPEC allows them to produce.[citation needed] Saudi Arabia's published reserves have shown little change since 1980, with the main exception being an increase of about 100 billion barrels (1.6×1010 m3) between 1987 and 1988.[29] Matthew Simmons has suggested that Saudi Arabia is greatly exaggerating its reserves and may soon show production declines (see peak oil).To diversify the economy, Saudi Arabia launched a new city on the western coast with investments exceeding $26.6 billion. The city, which is named "King Abdullah Economic City", will be built near al-Rabegh industrial city north to Jeddah. The new city, where construction work started in December 2005, includes a port which is the largest port of the kingdom. Extending along a coastline of 35 km, the city will also include petrochemical, pharmaceutical, tourism, finance and education and research areas.

Saudi Arabia officially became a World Trade Organization member in December 2005.