Understanding Business and Personal LawChapter 3:
Criminal LawA Global PerspectiveSaudi Arabia
Saudi Arabia is officially known as the Kingdom of Saudi Arabia. It is located in southwest Asia, occupying most of the Arabian peninsula, bounded by Jordan, Iraq, and Kuwait on the north; the Arabian Gulf, Qatar, and the United Arab Emirates on the east; Yemen and Oman to the south; and the Red Sea on the west. Riyadh is the capital. It is slightly more than one-fifth the size of the United States.
Saudi Arabia has at least one quarter of the world's oil reserves, and the oil industry leads the economy. The revenues from oil exports have been used to diversify the industrial base. Because most of the land is desert, major irrigation projects have been put into place so that crops such as grains, dates, citrus fruits, and vegetables can be grown. Nomadic Bedouins raise camels, sheep, goats, and horses. Income is also derived from Muslim pilgrims who travel from all parts of the world to the holy cities of Mecca and Medina.
The overwhelming majority of the population are Arabs although 27 percent of the population consists of resident foreigners. Arabic is the official language. Sixty-two percent of the population is literate.
The government is a monarchy. A Council of Ministers is appointed by the monarch and includes many royal family members. The legal system is based on Islamic law. Recently, several secular codes have been introduced. Special committees handle commercial disputes.
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