- Has some of the world's largest oil reserves
- Much of the native population lives on oil revenue from the government (a form of welfare)
- Creates a very low work ethic
- Most labor is imported from countries such as Pakistan, Bangladesh and the Phillipines
- Saudi Arabia did not exist as a country until after World War I
- Previously was called Arabia
- The British helped the Sauds become the rulers of the new country
Saudi Oil History
- Noticed the money Bahrain was making from oil in the 1930s
- House of Saud (ruling royal family) sold exploration rights to Standard Oil of California
- Standard Oil struck Oil - resulted in the formation of ARAMCO (Arabian American Oil Company)
- Americans paid Saudis a royalty on the oil produced
- Over time Saudis demanded higher royalties
- Saudi created OPEC with other oil exporting countries - to protect their own interests
