World: Profiling the Gulf States

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SAUDI ARABIA. For centuries, the Red Sea port of Jidda has been the gateway to Islam's holy places in Mecca. Jidda's transformation during the past decade from a ramshackle port to one of the busiest commercial centers in the Arab world is the most visible sign of the world's largest oil exporter's extraordinary new wealth. Billions of dollars have been spent to create basic transportation, communications, electricity and water systems in Saudi Arabia; the new five-year plan will earmark another $221 billion for development. One Saudi dilemma: of an estimated population of between 5 million and 8 million, as many as 1 million—75% of the labor force—are foreign workers.

The House of Saud retains its hold on power. Yet in an age of revolution, an absolute monarchy seems excruciatingly vulnerable, particularly since the kingdom's security forces are small and untested. The power structure frustrates young Saudis as they return from studies abroad. Western experts and Saudi officials alike nervously recall that Iranian students, educated on government scholarships abroad, were the shock troops of the revolution against the Shah.

In a state governed by the shari'a (religious law), the chasm between the ideal of Muslim piety and the lush life-style of many Saudi princes, moreover, was a factor that led to the seizure of the Sacred Mosque in Mecca by orthodox Muslim dissidents. Since that traumatic event, Saudi leaders have begun to crack down on corruption and dissolution in their own ranks. One close observer of the Saudi scene compares the Sacred Mosque incident to a heart attack: not fatal, but leaving the royal family with a frightening intimation of mortality and the resolution to lead a cleaner, more disciplined life.

IRAQ. One of the most startling developments in the Middle East during the past two years has been the evolution of Iraq, one of the superrich oil states (expected 1980 revenue: $30 billion), from a position of uncompromising radicalism to one that involves cooperation with its conservative gulf neighbors, mainly Saudi Arabia. The change is in part due to the personal ambition of President Saddam Hussein to become a regional leader.

As the commander of the gulfs largest (220,000 men) and best-equipped military force, Hussein is giving every indication that he intends to play the Shah's old role as policeman of the gulf—an ambition the smaller gulf states view with some apprehension. Drawing away from the Soviet Union, Iraq (pop. 12.2 million) has turned to Japan, France and West Germany for industrial technology and weaponry. France, Iraq's biggest oil customer, has been instrumental in bringing Iraq to the threshold of nuclear power; last June it closed a $1.5 billion deal to supply Baghdad with a variety of sophisticated weapons.

KUWAIT. "You know what I'd like?" the professor remarked as he floated in a pool at Kuwait University. "I'd like to be in California right now. What is there to do here? Nothing." Among the young and educated in the gulf, the complaint is common. Many have studied in the U.S., and, despite their sense of hurt and betrayal over American Middle East policy, there remains enormous nostalgia and good will for the U.S.