Zach AugensteinM. Fauver History of the Modern World CP May 5, 2014 The political effects of oil on the Saudi government The Kingdom of Saudi Arabia is a petro-state. It is a petrostate in the sense that the oil sector dominates the national economy and international exports. (Colgan 226) This is due to the sole culture of the Saudi economy, oil. (Ali 100) Oil represents 70 to 80% of state revenues as well as approximately 95% of export revenues. Before the discovery of oil in the 1930s, the economy relied on Islamic pilgrims. Containing the Al-Masjid al-Haram Grand Mosque, Saudi Arabia receives a large influx of believers each year for the Hajj, one of the five pillars of Islam. At this time of year, income came from food and lodging sold to travelers. This was enough to support the state, but not enough to make it the monetary power it is today. What allowed Saudi Arabia to climb the global economic ladder was oil. Oil has been a valuable industrial resource since the start of World War I. Since then, the demand for oil has gradually become higher and higher among industrialized countries, allowing oil-rich states to receive large amounts of wealth. Among these oil-rich states is Saudi Arabia, the region with the largest oil production capacity in the entire Middle East. Thanks to its remarkably high oil production, Saudi Arabia was able to acquire considerable wealth and political importance. Oil in Saudi Arabia has had a political impact on the Saudi government, both in its foreign and domestic policies, by providing it with economic power, the ability to finance wars, and the ability to use economic diplomacy. Thanks to its vast oil reserves, the Saudi government was able to gain economic power. in the form of pure...... middle of paper ......Arabia is a petrostate. Oil dominates the national economy, international exports and national politics. This greatly shaped what the kingdom is today. Initially a tourist economy, the kingdom has become a global monetary power. Thanks to its massive amounts of oil and extremely cheap production, the country was able to gain great wealth and political power. Thanks to its great abundance of oil, the country was able to reap immense profits from its sales and bring about diplomatic results to its advantage due to the great need for this resource. Without the discovery of oil, Saudi Arabia would have little importance in the modern world, the Grand Mosque being the measure of its importance. But thanks to its discovery of oil, Saudi Arabia rose to international importance, becoming one of the greatest assets of the world's superpowers..