September 24, 2004
 
 
 
"THE NATIONAL DAY"

THE 74th ANNIVERSARY OF THE KINGDOM OF SAUDI ARABIA.
A RADIANT MARCH OF UNITY THAT FOUNDED THE STATE OF ISLAM, BELIEF, SECURITY AND STABILITY.


In the early 18th century, Sheikh Muhammad Ibn Abdul Wahhab, son of a religious judge, called on Muslims to return to the original form of Islam. Initially persecuted, he later found protection in the town of Diriyah, which was ruled by Muhammad Ibn Saud, a member of the prominent Al Saud family. The partnership between these two men eventually led to the foundation of Saudi Arabia.

By the early 1800s, the Al Saud family ruled much of the Arabian Peninsula.

By 1824, the Al Saud regained political control of central Arabia and once again ruled the region from their new capital Riyadh. A period of unrest and tribal warfare began in 1865.

In 1901, twenty one year old Abdul Aziz Ibn Abdul Rahman Al Saud, was determined to reclaim all of the territory once held by his forefathers and to extend his protection over the Holy cities of Makkah and Madinah. In a daring battle he recaptured Riyadh in 1902. This event marks the beginning of the formation of the modern state of Saudi Arabia. After establishing Riyadh as his headquarters, Abdul Aziz proceeded, over the following decades, to unite the different regions into one nation.

On September 23, 1932, the country was named the Kingdom of Saudi Arabia as an Islamic state, with Arabic designated as the national language and the Holy Quran as its constitution.

The stability and prosperity that has reigned in Saudi Arabia for 74 years are due in large part to the legacy of its legendary founder. King Abdul Aziz was a remarkable leader of imagination and vision who launched Saudi Arabia on the road to taking its rightful place on the world stage. He astounded visitors with his shrewd mastery of world affairs and proved to be a highly sophisticated statesman. Self disciplined and moderate, intelligent and courageous, his considerable abilities were reinforced by his deep devotion to God.

The history of modern Saudi Arabia begins in the year 1902 when Abdul Aziz Al Saud and his followers captured the city of Riyadh, returning it to the control of Al Saud family.

King Abdul Aziz was born about 1880. After reclaiming Riyadh, he spent the next twelve years consolidating his conquests in the area around Riyadh and the eastern part of the country.

On 23 September 1933, the lands under the control of King Abdul Aziz were renamed the Kingdom of Saudi Arabia.

The main preoccupations of King Abdul Aziz were the restoration of law and order to all parts of the Kingdom. To these ends, he developed a system whereby stability and security prevailed.

During his rule, King Abdul Aziz laid the foundations for the modernization of his country. He began to build the country's infrastructure, first establishing roads and basic communications systems and later introducing modern technology and improving education, health care and agriculture.

When King Abdul Aziz established the modern Saudi state, one of his primary concerns, was his role in overseeing the well-being of the pilgrims undertaking the annual Hajj. Aware that the Holy Mosque could not support the growing numbers of worshippers, he initiated a refurbishment and expansion program.

King Abdul Aziz died in November 1953 after more than half a century as leader and King.

King Saud, the eldest son of King Abdul Aziz, acceded to the throne upon his father's death in 1953. He instituted the Council of Ministers and established the Ministries of Health, Education and Commerce. A large number of schools and the Kingdom's first Institute of Higher Education, King Saud University, were opened in Riyadh in 1957. King Saud made the first trip by a Saudi Monarch to the United States in 1957. In 1962, Saudi Arabia sponsored an international Islamic conference, which fostered the World Muslim League, headquartered in Makkah.

Faisal Ibn Abdul Aziz became King in 1964. King Faisal's governance at home was marked by a respect for tradition combined with innovation. While his father had shaped the Kingdom, King Faisal built and consolidated the country, and traveled widely throughout the Arab and Islamic worlds.

He took firm control of the country's fiscal policy and in 1970 initiated the first of the highly successful five-year Development Plans that have resulted in Saudi Arabia's rapid development. King Faisal was a central force behind the establishment of the Organization of the Islamic Conference in Jeddah in 1971, which is composed of Islamic countries and is dedicated to promoting Islamic unity and cooperation. King Faisal was one of the world's most-respected leaders, as well as one of its most powerful men.

King Khalid Ibn Abdul Aziz succeeded King Faisal in 1975. Under his leadership, Saudi Arabia continued its development at a remarkable pace. King Khalid launched the Kingdom's monumental Second and Third Development Plans in 1975 and 1980, under which the country's major infrastructure was established. The standard of living increased substantially and the Kingdom achieved political and economic prominence both regionally and internationally. Under King Khalid's leadership, the Gulf Cooperation Council (GCC) was formed in 1981. The GCC links Saudi Arabia with neighboring Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates for economic and security cooperation and coordination.

King Khalid died in June 1982 and was succeeded by Crown Prince Fahd Ibn Abdul Aziz.

King Fahd was well-versed in the arts of government as he had served as the country's first Minister of Education.

King Fahd's reign is marked by continuing development within the country and the infrastructure. On the political front, and within days of Iraq's invasion of Kuwait in late summer 1990, King Fahd decided that all measures would be taken to liberate Kuwait. In November 1990, King Fahd announced that plans were being made for the formation of the Shoura Council. In March 1992, Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz announced that the Shoura Council would be appointed by year's end and he also made its duties clear.

King Fahd Ibn Abdul Aziz, has directed Saudi Arabia's continued development and the diversification of its economic base away from reliance on oil. During his rule, the Kingdom's private sector has grown rapidly, now accounting for more than a third of the country's gross domestic product (GDP).

King Fahd began his distinguished career in public service more than half a century ago. As a young man, he represented Saudi Arabia at international events. His first high-level government post was Minister of Education during King Saud's reign. As the Kingdom's first Minister of Education, he helped plan and implement a far-ranging program to improve the quality of education and make it available to all Saudi citizens. In 1962 then-Prince Fahd became Minister of the Interior and, in 1967, Second Deputy Prime Minister. Prince Fahd was invested as Crown Prince and First Deputy Prime Minister in 1975. Thus, he was an active participant in Saudi Arabia's progress and growth that began in earnest with the introduction of the first five-year Development Plan in 1970. Among Crown Prince Fahd's many achievements in the realm of foreign affairs was his 1981 proposal to resolve the Arab-lsraeli conflict known as the Fahd Plan and adopted by the League of Arab States as the Fez Initiative.

When he became King, Fahd was already known as an experienced leader. He has focused his efforts on building enduring prosperity in Saudi Arabia through Development Plans that stress planning, broad educational opportunities, a diversified economy and resource conservation.

On the domestic scene, King Fahd has introduced extensive reforms aimed at facilitating the continued development of Saudi Arabia in all spheres. In an effort to enhance the administrative efficiency and further development of the nation, King Fahd in 1992 announced new bylaws for the Basic System of Government, Majlis Al-Shoura (Consultative Council) and the Provincial Council System. In 1993, he introduced bylaws for the Council of Ministers. On December 29, 1993, King Fahd opened the first meeting of the new Majlis Al-Shourah, a body of 60 highly qualified Saudi citizens with specializations in all fields, which makes recommendations and gives advice to the king on various issues. Though the concept of Shoura (consultation) has always been practiced by Saudi leaders, the new system gives it a more formalized structure to better assist in meeting the requirements of the modern state. King Fahd also decreed new bylaws for the Higher Education Council and University System. These bylaws will enable the nation's higher education system to better meet the country's growing need for educated and skilled citizens in larger numbers and newer fields in the 21st century.

As the Custodian of the Two Holy Mosques of Makkah and Madinah, King Fahd continued the policy of previous Saudi leaders to expand the facilities at the Holy sites and across the Kingdom to facilitate the annual pilgrimage for a greater number of Muslims from around the world. Today, more than two million pilgrims take part in the annual Hajj. In 1992, a project personally launched and overseen by King Fahd was completed, expanding the capacity of the Holy Mosque to accommodate more than one million worshipers and that of the Prophet's Mosque to more than half a million worshipers.

In the international arena, King Fahd has helped to achieve reconciliation among Arab as well as other Islamic nations, particularly through the League of Arab nations, the Organization of the Islamic Conference and other international forums. During the Arabian Gulf Crisis, he played a decisive role in restoring international legitimacy and implementing United Nations Security Council resolutions. King Fahd was also instrumental in putting together a coalition of Arab, Islamic and other friendly states that ultimately secured Kuwait's liberation. King Fahd has also played an active role in seeking peaceful resolutions for crises in Bosnia-Herzegovina, Lebanon, Afghanistan, Somalia and other parts of the world. Under his direction, Saudi Arabia has provided emergency assistance to numerous countries suffering from natural disasters.

Among King Fahd's many international achievements is the historic Taif Accord. After years of quiet, behind-the-scenes diplomacy, Lebanese parliamentarians met in Taif, Saudi Arabia, in 1989 and established a national reconciliation government to end 15 years of civil war and return normally to their country.

King Fahd has also been an active supporter of Lebanon's reconstruction efforts, providing financial aid and other forms of assistance. An advocate of peace, he has supported the Middle East peace process, as base towards achieving a just and comprehensive settlement of the Arab-Israeli conflict.

Today aware of the realities and challenges of the 21st century, Saudi Arabia, which celebrates its 74th National Day anniversary, has entered the third millennium by pursuing a policy of reforms at home and openness at regional and international levels to ensure a place for itself in a world where only those who are able to compete can hope to survive.

New laws have been enacted to revive the national economy by attracting foreign investment both directly and through joint partnership. Foreign and domestic capital is sought to improve and expand existing projects and create new ones to ensure more jobs for a fast growing population.

The Government, through the public sector, plays a major role in the Kingdom's industrial activity but, in recent years, the private sector has, with the Government's encouragement under the Kingdom's system of free enterprise, become increasingly involved in and responsible for industrial development and diversification.

On the 30th August, 1999, a royal decree was issued by Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz announcing the formation of the Supreme Economic Council. The eleven-member Council was to be chaired by Crown Prince Abdullah Ibn Abdul Aziz, Deputy Prime Minister and Commander of the National Guard. The decree said the formation of the new body had been prompted by the crucial role played by economic affairs in the countries of the world, their direct influence on the interests of citizens and the need to involve a wide circle of contributors in economic policy-making in the changing economic world of today.

The statement confirmed that the economic policy of the Kingdom was based on the pillars of comprehensive social welfare, the concept of a free economy, and a free market for capital, goods, services and products in order to secure its goals.

The creation of the Higher Council for Petroleum and Minerals, a high power body focusing on the county's two main natural resources, oil and minerals, the General Investment Authority (GIA) which oversees foreign investments in the country and the Higher Tourism Authority whose objective is boosting domestic travel and diversifying revenue sources, the Kingdom has embarked on a new era of economic development.

These and other measures allowing foreigners to own property and invest in the stock and the opening of the oil and gas industry to foreign companies reflect a strong desire by the government to revitalize the economy.

The importance of oil whose influence is felt on every sector of the economy is reflected by the fact that the Kingdom has proven oil reserves of more than 260 billion barrels and proven gas reserves exceeding 204 trillion cubic feet.

Although oil companies are seeking to invest in prized upstream oil business, it is the gas sector which the Kingdom has given priority on with domestic demand expected to grow by 8 percent annually over the coming seven years. Gas is also being developed as feedstock for electricity generation, desalination plans and petrochemicals. Analysis say the Kingdom could become a net gas exporter in future. Saudi Aramco, the state owned oil and gas giant, last year announced plans to invest $45 billion over a period of 27 years on upstream gas development and processing facilities.

The restructuring of the economy and the attraction of local and foreign investment reflect a new economic policy based on diversification. A main priority here is to provide jobs for a growing population where thousands of college and high school graduates enter job market every year.

The drive began with the invitation of international oil companies to submit proposals for investment in the hydrocarbon industry. Two weeks of talks in April in the Red Sea port city of Jeddah ended with 12 major companies presenting proposals for up to $100 billion they said they would invest in the development of the energy sector. Prince Saud Al Faisal the foreign minister who led the ministerial committee, which conducted the talks, said the money pledged could create from between 1 million to 1.6 million jobs for Saudis. The government plans to set up a special fund for manpower development to prepare citizens to tale over jobs.

The Kingdom hopes to become a pioneering center for foreign investment, a goal identified by GIA governor, Prince Abdullah Ibn Faisal Ibn Turki, who before taking over as head of the new investment authority was Secretary General of the Royal Commission for Jubail and Yanbu of the country's petrochemical industry.

The GIA was originally established as part of the government's efforts to attract more investment, maintain high rates of economic growth and create more jobs. This is part of a general privatization drive that began several years ago with the state gradually relinquishing control over key sectors including communications, electricity and transport giving the private sector more roles in running the economy.

In its endeavor to secure new markets for its products, the Kingdom has gone a long way to join the World Trade Organization and its encouraging the establishment of free trade zones with neighboring states, notably the GCC and other Arab countries.

For years the authorities have been concerned with the drain of hard currency spent by Saudis traveling abroad on summer vacation. Analysts say Saudis spend around SR25 billion ($6.7 billion) compared to a mere SR10 million (some seven million ($2.7 billion) spent on domestic tourism.

The creation of the Higher Tourism Authority chaired by Prince Sultan Ibn Abdul Aziz , Second Deputy Prime Minister, Minister of Defence and Aviation and Inspector General, was followed by new regulations governing the stay in the Kingdom of those Muslims who come to country to perform Umrah (minor pilgrimage). Another one million come every year from all over the world for the annual Hajj.

Under the new Umrah regulations visitors are granted one - month instead of the previous two week visas and allowed to travel to other parts of the Kingdom outside the two holy cities of Makkah and Madinah. The Ministry of Haj said it expects more than one million visitors to come for Umrah during the first year of enforcing the new rules. Pilgrims coming for Umrah can now visit the Kingdom round the year except for the two months of Hajj. Analysis and businessmen involved in the hospitality sector say the Kingdom could accommodate up to 10 million Umrah visitors a year with revenues generated expected to reach SR10 billion.

Such a huge number of visitors require the upgrading of existing facilities and the creation of new ones. A major expansion project to allows King Abdul Aziz International Airport in Jeddah the gateway for Hajj and Umrah visitors, to cope with the anticipated increase.

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