Saudi Arabia

June 2007 | Risk Summary

The House of Saud remains under challenge on both the domestic and external fronts - from a deteriorating security situation in Iraq, its own domestic terrorism threat, and a resurgent Tehran. Still, the regime has proven its resilience over the years in the volatile Middle East region and it should be able to weather the current wave of political and security risks. Moreover, despite efforts to publicly distance itself from Washington, its US alliance will remain solid, given its importance as a key pillar of the Kingdom's security strategy. In the long term, it is problems of unemployment and lack

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