The influence of oil in Saudi Arabia has effected Saudi Arabia. For example they used oil accounts for more than 90% of exports and nearly 75% of government revenues, facilitating the creation of a welfare state. Another example is that the government is attempting to promote growth in the private sector by privatizing industries such as power and telecommunications. Saudi Arabia announced plans to begin privatizing the electricity companies in 1999, which followed the ongoing privatization of the telecommunications. These are some examples how influence of oil in Saudi Arabia has effected Saudi Arabia.

Question

Political change took place in Saudi Arabia due to oil. For example The politics of Saudi Arabia takes place in the context of an Islamic absolute monarchy. The King of Saudi Arabia is both head of state and the head of government, but decisions are, to a large extent, made on the basis of consultation among the senior princes of the royal family and the religious establishment. The Qur'an is declared to be the constitution of the country, which is governed on the basis of Islamic law. Another example is that Government is dominated by the vast royal family, the Al Saud, which has often been divided by internal disputes and into factions. The members of the family are the principle political actors. Political participation outside of the royal family is limited, but there has been pressure for some time to broaden participation. In recent years, there has been a rise in Islamist activism, which has also resulted in Islamist terrorism.

In conclusion, the influence of oil in Saudi Arabia has effected Saudi Arabia. Also political change took place in Saudi Arabia due to oil. I never knew that oil could change a whole country like Saudi Arabia.