Saudi Arabia

February 2007 | Risk Summary

Domestic tensions are being exacerbated by regional developments, presenting the Saudi regime with formidable challenges that pose a risk to stability. Divisions within the regime with regards to foreign policy appear to have accentuated ongoing family rivalries, while the rise of Iran and the worsening situation in Iraq has focused attention on the Kingdom's own Shi'a minority. Nevertheless, while these are testing times for the House of Saud, we believe that risks to stability remain contained at least in the medium term.

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