Saudi Arabia

March 2007 | Risk Summary

2007 looks set to be another challenging year for Saudi Arabia though we continue to believe that the resilience of the royal family has been tested many times over and risks to stability remain contained at least in the medium term. Domestic tensions are being exacerbated by regional developments and security concerns. 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. However, any further escalation in US-Iranian tensions or a breakout into full

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