In 1902 Abd al-Aziz Ibn SAUD captured Riyadh and set out on a 30-year campaign to unify the Arabian Peninsula. In the 1930s, the discovery of oil transformed the country. Following Iraq's invasion of Kuwait in 1990, Saudi Arabia accepted the Kuwaiti royal family and 400,000 refugees while allowing Western and Arab troops to deploy on its soil for the liberation of Kuwait the following year. A burgeoning population, aquifer depletion, and an economy largely dependent on petroleum output and prices are all major governmental concerns.

PEOPLE
Saudi Arabia's 2003 population is estimated to be about 24.3 million, including about 5.6 million resident foreigners. Until the 1960s, most of the population was nomadic or seminomadic; due to rapid economic and urban growth, more than 95% of the population now is settled. Some cities and oases have densities of more than 1,000 people per square kilometer (2,600 per sq. mi).

HISTORY
Except for a few major cities and oases, the harsh climate historically prevented much settlement of the Arabian Peninsula. People of various cultures have lived in the peninsula over a span of more than 5,000 years. The Dilmun culture, along the Gulf coast, was contemporaneous with the Sumerians and ancient Egyptians, and most of the empires of the ancient world traded with the states of the peninsula.

ECONOMY
Oil was discovered in Saudi Arabia by U.S. geologists in the 1930s, although largescale production did not begin until after World War II. Oil wealth has made possible rapid economic development, which began in earnest in the 1960s and accelerated spectacularly in the 1970s, transforming the kingdom.

Saudi oil reserves are the largest in the world, and Saudi Arabia is the world's leading oil producer and exporter. Oil accounts for more than 90% of the country's exports and nearly 75% of government revenues. Proven reserves are estimated to be 260 billion barrels, about one-quarter of world oil reserves.

Full country name: Kingdom of Saudi Arabia
Area: 2 million sq km
Population: 24.2 million
Capital City: Riyadh (pop 3 million)
People: Arabs, Bedouins, Najdis and expats from all over the world
Language: Arabic, English
Religion: Islam
Government: monarchy
GDP: US$186 billion
GDP per capita: US$9,000
Annual Growth: -9%
Inflation: 0%
Major Industries: Oil, steel, cement, wheat
Major Trading Partners: Japan, United States, EU, India