Saudi Arabia's role in world economy
The Kingdom of Saudi Arabia is of crucial importance for several reasons.
First and foremost, it was the birthplace of the Prophet Muhammad (pbuh) and is the location of Islam's two holiest cities, Makkah and Madinah.
Secondly, Saudi Arabia is a major player on the political scene. All its policies are based on the search for justice and stability and it has used its good offices on many occasions, at both regional and international level, to resolve some of the of the world's most intractable problems.
Economically, Saudi Arabia is a giant in its region and with 25% of the world's proven oil reserves, is likely to become even more important in future.
The Kingdom of Saudi Arabia comprises about four-fifths of the Arabian Peninsula, a land mass constituting a distinct geographical entity, bordered on the west by the Red Sea, on the south by the Indian Ocean and on the east by the Arabian Gulf.
The Kingdom itself, which occupies approximately 2,250,000 square kilometers (868,730 square miles) Is bounded on the north by Jordan, Iraq and Kuwait; on the east by the Gulf, Bahrain, Qatar and the United Arab Emirates; on the south by the Sulanate of Oman and Yemen; and on the west by the Red Sea.
Between Saudi Arabia and Kuwait there are two adjacent areas of neutral territory (the Neutral Zone) which, since 1966 (1385/86 AH), have been divided between the two countries, each administering its own portion. Another Neutral Zone, between the Kingdom and Iraq, existed until 1975 (1394/95 AH) when it was agreed that the zone should be equally divided between the two parties.
Located between Africa and mainland Asia, with long frontiers on the Red Sea and the Arabian Gulf and with the Suez Canal near to its North West border, the Kingdom lies in a strategically important position.
Physical Features and Climate
Structurally, the whole of Arabia is a vast platform of ancient rocks, one continuous with North-east Africa. In relatively recent geological time a series of great fissures opened, as the result of which a large trough, or rift valley, was formed and later occupied by the sea, to produce the Red Sea and the Gulf of Aden.
The Arabian platform is tilted; with its highest part in the extreme west, along the Red Sea, sloping gradually down from the west to the east. The Red Sea coast, where the upward tilts is greatest, is often bold and mountainous, with peaks of 3000 meters. Along the Red Sea coast, there is a narrow coastal strip (Tihama) which broadens out in the Jiddah area and provides access through the highlands to the interior. On the eastern side of the Kingdom, the Arabian Gulf coast is flat and low lying. The shallow seas in this region deposited layers of younger sedimentary rock, allowing the creation of the vast oil reserves for which the area was to become famous. The coast is fringed with extensive coral reefs which make its difficult to approach the shore in many places.
Geographical Regions of the Kingdom
Geographically, Saudi Arabia is divided into four (and if theRub alKhali is included, five) major regions, the first is the Central region, a high country in the heart of the Kingdom; secondly, there is the Western region, which lies along the Red Sea coast. The southern region, in the southern Red Sea Yemen border area, constitutes the third region. Fourthly, there is the eastern region, the sandy and storemy eastern part of Saudi Arabia, the richest of all the regions in petroleum.
It is important to note that, for administrative purposes, the Kingdom is divided into thirteen Administrative Regions
Oil Resources
According to the latest estimates (2008), the Kingdom's recoverable reserves now stand at 267 billion barrels. (An increase in recoverable reserves, despite the daily extraction of millions of barrels of oil, is made possible by the discovery of new oil fields and improved technology in exploiting existing field.)
Current estimates mean that Saudi Arabia holds more than 21% of the world's proven oil reserves. (NB: Proved reserves of oil - Generally taken to be those quantities that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reser- voirs under existing economic and operating conditions. BP)
As techniques for extraction improve and new reserves are found, it is estimated that the oil reserves of the Kingdom of Saudi Arabia will last of some 90 years.
Gas Resources
At the end of 2007, the Kingdom's proven gas reserves stood at 253 trillion cubic feet, an increase of 22% over the estimate for 1997. This figure represents approximately 4% of world reserves.
In the early years of oil exploitation, natural gas from the oilfields was burnt off in gas flares. Conscious of the need to conserve its energy reserves, the Kingdom now gathers the natural gas (methane and ethane) emanating from the oilfields in the Eastern region in order to supply the vast industrial complexes at Jubail in the Eastern region and Yanbu on the western side of the Kingdom.
Today, almost all the natural gas at the Kingdom's disposal is effectively utilized.