Saudi Arabia

April 2007 | Risk Summary

Reports of a deteriorating relationship between the US and Saudi Arabia are largely unfounded in our view. True, Saudi Arabia's King Abdullah described the US presence in Iraq as 'an illegitimate foreign occupation'. However, these moves are in essence most likely to be a calculated attempt to distance the House of Saud from its ally that is resented widely within the region. Saudi Arabia has moved away from its checkbook diplomacy to take a prominent stand on regional matters in an effort to counteract the rising power of Tehran, as seen in renewed efforts to deal with the Israeli-Palestinian issue

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