This group, established in London in May 1993, served as a two-way conduit for regime-damaging information flowing into and out of the Kingdom. This group suffered great amounts of repressive measures and by 1997, had been effectively silenced. There exists no formal, political alternative to the Al Saud rule.
Economic Tension.
Saudi revenues are subject to extreme fluctuation. The oil sector accounts for one-third of the official GDP. Oil sales account for approximately 90% of export earnings and 75% of budget revenues. Lag in oil prices fuel desires for the diversification of the economy. .
Management of state revenues is questionable. Corrupt practices are rampant due to the permeation of familial networks. An example of such profiteering is the phenomena of commission farming, in which a Saudi national will act as broker for foreign-sourced contracts on .
lands they have usurped from the state. They charge commission based on the percentage of total contract value. An estimated one-third of government revenue never reaches the .
Saudi treasury.
The economy under King Fahd has averaged a .2% growth per annum from 1980 to 1998. Defense expenditures accounted for 30% of the official budget, while another 30% were defense related. Subsidies-effectively payments for political support-account for the remaining portion of the budget. Per capita income formerly on par with that of the U.S. has fallen to $6,972, less than a quarter of America's. Saudi Arabia has a low level of investment-16.7% of GDP compared with the 27% average for all developing countries. .
Saudi Arabia has one of the fastest-growing and most youthful populations in the world. 60% of Saudis are under 21 years old. Youth unemployment is rising at the same time as the population. Jobs are not being created at a sufficient rate. Declining standards of living and increasing poverty are threatening the government's role as patron.
