Saudi Arabia
The gradual process of easing relations between Saudi Arabia and Iran continues. On Monday, June 24, the 19th Asia Cooperation Dialogue (ACD) was held in Tehran, an event attended by representatives of over 40 Asian countries. Representing Saudi Arabia at the event was the Deputy Foreign Minister, Waleed bin Abdulkarim Al-Khuraiji that, in his speech, emphasized the need to improve coordination mechanisms among Asian countries (particularly in the Middle East) to address the challenges of energy security and food security. The Deputy Minister also highlighted Riyadh's commitment to regional cooperation regarding new technologies, especially AI, to address the challenge of climate change that threatens the security of the area.
A year ago, Riyadh and Tehran reached an agreement to restore diplomatic relations after seven years. Since then, the two countries reopened their mutual embassies, and held several high-level meetings. Although the tone of the dialogue has softened and efforts have been made to reinvigorate the economic agreements of 1998 and security agreements of 2001, no significant progress has been made in this regard. Additionally, it is worth mentioning at least two cases in the Middle East where Saudi and Iranian differences emerge: the Red Sea, where Tehran continues to support Houthi actions; and Lebanon, where Hezbollah, backed by Iran, and Israel continue to exchange fire along the Blue Line. A destabilized Middle East certainly does not serve Riyadh's interests, as it needs regional stability to advance its development projects.
On the economic side, the energy company Saudi Aramco has put up for sale a 0.64% stake in its shares through a public offering; the company aims to raise between $11.5 billion and $13.1 billion from the sale. The Saudi kingdom aspires to increase its capital for the realization of the ambitious Vision 2030 projects, but it has to contend with diminished oil revenues and a reduction in foreign direct investment (FDI), which in the first half of the year recorded a 40% drop compared to the same period in 2023.
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| Head of state | Salman bin Abd al-Aziz Al Saud |
| Head of Government | Mohammad bin Salman Al Saud |
| Institutional Form | Unitary Islamic absolute monarchy |
| Capital | Riad |
| Legislative Power | Unicameral Consultive Council (150 members) |
| Judicial Power | The formally independent judicial system consists of three levels of justice, divided into Courts of First Instance, Courts of Appeal and the Supreme Court. The Appeals Commission deals with trials in which the government is involved |
| Ambassador to Italy | Prince Faisal Bin Sattam Bin Abdulaziz Al Saud |
| Total Area kmq | 2.149.690 km2 |
| Land | 2.149.690 km2 |
| Weather | Harsh and dry with large temperature extremes |
| Natural resources | Oil, natural gas, iron ore, gold, copper |
| Economic summary | Saudi Arabia has an oil-based economy with strong government controls on major economic activities. It has about 16% of the world’s proven oil reserves. Saudi Arabia in one of the most important exporters of oil in OPEC organization. |
| GDP | $834 billion (Dec. 2021) |
| Pro-capite GDP (Purchasing power parity) | $19018 (Dec. 2021) |
| Exports | $167 billion (2020) |
| Export partner | China 20%, India 10.1%, Japan 9.75%, South Korea 8.63%, UAE 5.51%, United States 5.36% (2020) |
| Imports | $143 billion (2020) |
| Import partner | China 22.1%, UAE 12.6%, United States 7.52%, India 4.44%, Germany 4.73%, Italy 2.62% (2020) |
| Trade With Italy | $ 9,52 billion (2021) |
| Population | 35.354.380 (2022) |
| Population Growth | +1,63% (2022 est.) |
| Ethnicities | Arabs 90%, Afro-Asians 10% |
| Languages | Arabic (official language), Tagalog, Rohingya, Urdu, Egyptian Arabic |
| Religions | Islam (official), Catholics 3%, Hindus 1%, others 2% |
| Urbanization | 84.7% (2022) |
| Literacy | 97,6% |
The state-building process of Saudi Arabia ended in 1932. Since then, the country has been a unified sovereign kingdom under the Saud dynasty. The Kingdom of Saudi Arabia is by far the largest state of the Arabian Peninsula. The country borders with Jordan, Iraq and Kuwait to the north, the United Arab Emirates, Qatar and the Persian Gulf to the east, Yemen and Oman to the south and the Red Sea to the west. The population is about 35 million and the official language is Arabic.
Under the leadership of the Saud family, the country has historically played a pivotal political, diplomatic, religious and cultural role within the Islamic and Arab world. This is also due to the presence in the country of some of the main Muslim holy places, such as the Holy Cities of Mecca and Medina. The Kingdom is visited by millions of pilgrims from all over the world each year, making religious tourism a major source of revenues for the Saudi Government.
After the discovery of the first oil fields in 1938 and the consequent boom of the hydrocarbon industry, the Kingdom quickly became one of the richest countries in the region. As a key oil producer and reliable partner for Western powers – mainly the United States – Saudi Arabia has strengthened its diplomatic and political status, positioning itself as an important mediator in the Near East. In recent years, the country has invested in economic diversification programmes, reviewing its diplomatic relations and international investments. A G20 member, Saudi Arabia is an important commercial and economic power and a relevant trade partner for Italy, both in terms of exports and of imports. Total annual trade between the two countries was $ 9,52 billion in 2021. In 2020, Saudi Arabia ranked 26th among Italy’s top import countries, while Italy ranked seventh among Saudi Arabia’s top export countries. Over the last few years, relations between Riyadh and Rome have progressively grown stronger. This has led to the signature of a Memorandum of Understanding for Bilateral Strategic Dialogue between Italy and Saudi Arabia in January 2021.
