Executive Summary
U.S. service exports over the past ten years have achieved steady successes in the Saudi market, growing on average 5.31% per year. Government sponsored changes in the Kingdom including privatization, Saudization, exploration and infrastructure projects that will accelerate service demand over the coming decade. Many barriers to foreign service providers such as majority ownership requirements, onerous taxation, and import tariffs have been reduced or eliminated. Now, American service providers must effectively confront supply side obstacles that could diminish a $41.8 billion export opportunity over the coming decade.

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Summary
Saudi Arabia, a monarchy ruled by the Saudi dynasty, enjoys special importance in the international community because of its unique association with the Islamic religion and its oil wealth. Since the establishment of the modern Saudi kingdom in 1932, it has benefited from a stable political system based on a smooth process of succession to the throne and an increasingly prosperous economy dominated by the oil sector. Decrees by King Fahd in March 1992 establishing an appointive consultative council and provincial councils and promulgating a basic law providing for certain citizens' rights could signal a gradual trend toward a more open political system.
                                                                                                           

Most Recent Developments
On July 29, 2003, Saudi Foreign Minister Prince Saud al-Faysal called on the Bush Administration to release a classified section of a joint congressional report covering intelligence community actions before and after the terrorist attacks of September 11, 2001. The still-classified section reportedly described alleged Saudi links with persons involved in the attacks and indicated that senior Saudi officials channeled charitable gifts to individuals that may have helped fund the attacks. Prince Saud and other Saudi officials denied the allegations and asked that the classified section be released to enable the Saudi government to rebut the allegations. The Bush Administration refused on the grounds that disclosure could reveal U. S. intelligence sources and methods and might compromise the on-going investigation of the 9/11 attacks.
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