ADOCTORALTIIESIS

ON

A CASE STI,JDY OF RELATIONSHIPBETWEEN

SAIJDI ARABIA AND PAKISTAN

{198s - 2005}

Nryef Alrasheed

DEPARTMENT OF INTERNATIONAL RELATIONSIJNMRI ry OFKARAICEI

By

CERTEFICATE

Ctrtitr d lhar Nayef AlEshccd S/o Da*od Altarh..d hrs !iait!6 this th.si!cntftr.d 'A Cc Sordy of R.hriorslip Bctwc.n Ssudi Anbia ard pbtist ! { 1985- 20051" uode( ny sradvisioD. Thc vicr/s oenssd in ir arc rhos. ofth. althor.

Hc has @nplel.d this 6catu ss a ..quir€ment for thc deg@ oiPh D i!I .rurioDl Relation!.

,kwr.uy"''Bx Cbair pe6on D€p,tttl€nl of Iu&madonal RolationsUnive6it of K4.hi

Thb i!.iir b lubmin d h ft16[!El oftlo t.qr|irut.at &r Doobr ofl'lilo.A]yft. th! Sbdi6/Rt*..r!h cndld oDt rt lt. DqrMr of llElaior R&iolriiEidg ofxr'sli, 2qt

D€!r.. Copptt@

Dr!! of^pomY.l

Contents

DiploDrcy .!d MrD.g.n.rt of l!t.m.rlo..l Rd.dou .

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a55

PAKITIAII

AFGHANISIAN PE' * i'\.ifiler"

) Snans

",nl^' *?

INDIA

ACKNOWLEDGEMENT

And I joined oy Ccn Bl Co$l c olfie at mid of 2004, n Kafubi City-

Patjsla4 posred by my Minisrry of FoEig! AraiB, Kingdon of saudi Anbil I

% ked to rqqrch ad @Uet dlta on l|!. rcbtioN Uw@ S.!di Ambia edPatistan. Blt I iotrlly dieppoidr.d rhrr no r.e.aEh wo* so h. ha bd dorc otr

ln doing ny qeNh worL I was fa.cd wirh n@y cball@ees ed difficnltics,

which as a @trs€qudc. .ould cosr oe my cdeer. I join€d .l rh. @d of 2004 as !scond head of the diplomalic mission in K@chi dd ny desi@ wd to do

res@h work rcsnlted in the sarch for coU€ction of data md infomation udenlme. I felr tht the rwo main isu$ should b. d€alt imediately withont wbich

it wil be difliculi 10 luaue rh. rndc bBincs Blatiom bctwd i!€ two Mutimoutri6. I iholght bei4 a devcloping 6bvy dd on iG My ro modmiation ir

wolld be 6ier tbn I lhough! to build up EllrioB[ip wfth rbc bBin* siorcptts&d by the Chdbd of ComcEc dd Indury.

I deided to @lla. daia and infomtio! l!. [bnty of KaEchi Chanblr ofComerce 6nd IndBty for my Eg..eh wo.k on ihe $bjat of InterDdodl

The olhd inporlanl poinr pas io hainlain honesty in rhe coll4tion of dab helptul

in By r*tuch work, as I m a followo of Ishmic Prilciples ed cotuider lhd ro

In tbis rcgr4 th@ de a lot of$prcci.tioB, thadtrll wdds dd D@ thrr I nedto ofld to all lhos who hclpcd mc by dcvoli.g th.n dtu aid eForts rowardr my

B.sh wor|. Th6e p.ople d6w. . spei.l Md@ of 0En llu6 for

supponilg me in tuny difr€@t My3 likc $ggati@i aplr@iniou, sbaing ofid6 dd vies, advices, qp.ricnc. ud Sivirg nc uild when I B dom. Att

thse have playd a lery €f@tivc &d inporlall tule in ny rcrmh work.

Two snch p@ple e Profcssor Dr. Talar W.zarN! ChaiD€|M ofthe IfieMiiordRelarioB Deplrlm€lq Univdity of Kfiachi, md rhc othe. is ptofBsr Dr.

Mun@d Shamslddin to whom I .n aho graEful md muld lite to sy ttql ro

have noble, leded p€rsomlilies lik ihcn as srong pil.rB givs Crqt stisflctiona connd@cc to E!.@hc6 lik me. Th€ Vic. Chmcellor, Utriv6ity of(echi, Dr. ruada Qasih, p.opl. fFm Islmic Cbmb.' of Com*e rdtldusfy, D. syed Azhd Dnc Hsan, EhadiS Gadnlta, Rshid Ann, and fron ouCoDsulate om@, Mojeb-Alrsbmo, fion Qatd Cosutde, Mob@d Alj'bbd(D€puty Cosul cdml) e moE lik brcrhcB rhan ftdds.

I m pbud to b. .@lld d<l wo*cd with ilc popl. 4ociat€d wiI[ Uriv@ily

I woDld alm)6 b. gEcfirl Io hy clc. clativd Unclc Mobad4 SulioraAbduUa!, YoMf, Salih dd ny wifc Fathd in Le, Unct. Ilntim dd ny @rh6in law 6d all rhcn faDili6 ebon witt th.m I eould ncw FDvid. dough rirefor my wort, and also to my borh4 aDd sisc6 dd in low, vhoo almyssupponing nc in cvery €florts $anirg Aom tlcn wtuhes ed DoM udsuggetioB 10 h.lp by brioginS ru|dials and rall ro Fopl. of |len potioB to

coope€ie witL n€ fo! dy wdh work I will n vd foryct tnm

And .bove all my pet]@cni lovc my horhcr sd my wife whon no ddcnpdor is

mough !o pE*nt my silccrc rsp.ct and lov. for whar $ey bav. don€ and wished

Nrod & D6ian io of6. P.Bos to rhom Imei .!d th.y h.lped De . gnrt d€rl

. Dr. B& Munryd Junejo

scc€hry ro cov.lmdt of Sitrd, Kmcbi. Dr. Syed Azbr Ibne Has

I5luic chMld of Coo@Ec & lnd$ry. Prof. Dr. Mul@d Shmu.ldin

Dq F&qlty ofArt, X@chi Univ.Biry. Dr, Sulaimm Saleh Al-OSla

Dcd-KiDg Saud Unive$ity Libnd€g

. \4r. Mohamed Haithd Klsrtusistart sretary c@@t for Pubt'c Relarios, M&kedDg, Fouow_lp &SupnisioL M,tla! Chdba of Col)ll]@e & hdury

. Mr. YMAbduUaIAwSfterary Gdrat , Ma*rd Char$d Ofcolm@ & Indury.

' M!.MohrnnadIlydIbhhim

A$ista Maugd L.gal D.panmcnr & Had ol Forien Retadons &Tra$lation Deph, Mallh Chrnber of Cotmme & Ldsrry

. Mr. Hdd Al-Sh@ef

Deputy & Infomtior DA, Kilg Faisd Cdter for R.saEh dd Islmic

. Mi Abdd Rrn@ AljdisyChai'fu-colmil of Saudi Chrnb.. of colm@ & Induny

. Mr. You€f Al-bandd

Vice S4Eury CeneEl. KrnS FaHl tnttfuriomt pfl?(

. Mr. Yousef Ar-Ohali

Senio. Induhial Spei.list, Tl€ S.udi lud fo. DevetoDm€ "Saudi Export

. Mr. Fatehyab Ali KIdCtait]M, latis6n tdstitut of ttrtcmtional Afi.iB

. Dr. q.n SbrL Anocd

Sdetary & Didtor Rcscah, Prlistlr lBtituie of

. Mr. BahirAlM Zia

Chief LibEiq Srd. Barl Of Pakbt lr Kdchi

VicelBide,Fed€stiotrof lalds|m.Cban$€rofcolmfte&Indultry. Mr, Main Abnr Ahmd

sedor vice PrcBidelt, Kdacbi Chmbcr of Collllr@e & lldutry. Mi. Ilhhim Al-Moflcb

Director Gncal, Tlc Saudi Fuld for D.v.lopmd! Satdi E4orr Prcg@. Dr. Khalid Al-Swcilc@

Deplty DirEbr Cdrer.l, hBtu nt Dcp, Sadi Anbie M@.{a.y

. Dr. ftalid Al-Sulaitu

Dft.tor-Tahnolog D€velopDdr C.ot4, KilC Abdulaziz City for

S.ide & T€chnolory

. Prci Tdik Al-Sohm

Secrctary ofthe Acadenic Council, King Saud Univeaity

Execudve Di@tor, Saudi Exporr Developn nt Cqrd, Coucil of Saudi

. Mr. Ablaq A!m.d MAlik

DiMtor C@61, B..rd of lavdnnoq corcmdt of Pakista.

. Mr. Walc.d Al-Yalya

DiFlot Gaol, Mltetiq & Inv6td SNic.s, S.udi Aabia cd.nltnvestrdt Authonty

. Mr. Kirlid Al-Otaibi

Asislln@ Sarctary cd@l Foci8l AflaiE" C@cil of s.udi Cb.mb.. ofCobiu€e & lndustry

. Mi. Abddlah ALl{@!diD.puty Ministcr fq F@ig! T6dc. Minisfy of Cmlme& hdurtry,

. Mr T. K Mirhra

All4he, E oromic& Colr]j)mi.l, EDlassy of Ldi., Piyad!-Saudi ADbi.. Mr. Ibnlin Altcdrs

DiMror c@eial, R.eeh& E onomic Snldi6, Coucil of Saudi

ChambeB oI ComcG & hdlsrry

. Dr. Oslm Blbiki. Alned

Rcseaich Divisio, lslamic Dcrcloporcrt Ba*. Mr. AMul Rafty Siddiqi

Iftibr Chmb6-K@chi, raau.r lDlmtiodl M.g&i!c Poly8on Media

. Mr. Dem Abdulbh Abrcd

Ddwd Mushr4 Crcup, Krrchi

ChlilrM Rie ErDorL6 Asei.tion of Patistr!-Kecbi.lvt.MuhamdtuwMidoor

Vicc Chai@ Rl"\P- K@hi. Mr. Frnd Moh@d Al-S.]ni

D.puly Serct ry Gdrrl, Co@il or Saudi Chrrlb4 of ComcM a

Prsddt Cbrhbd otcool|]r.M & IndBtrt- Krtrbr .

. Mr, Abdulbh D.dlbhoy

Lif€ M€nba, Chli!ru StedinS Comina on Highd Eduqtion edM@bd of Ch.mb.r of comE. & h{nlFy

Fm Pr6idc!! Ch.sbd orcomncrc.& lndalty, rrNlacbi

Fm Presidenq Chebd of ColmeE€& IrnEry, Kuchi. Dr. Mna I}htilr Bds

ChAi@-Baig Grcup or ComFlid. M., M Y.qub Tabsni

AERO ASrA-K6fuhi

H$hwei Cbup of CodlluieeKdchi

Cb.im K@ngi Assi.rion of Tatle& Indrltry

Vicc Chail|M, Slddils CominF on B.*in& Crcdit& Findcc,

M$agus Dircctor, Kechi slek Exchdg.

Chicf Exdtiv., Spei.lists GreuF rd@. Mr. Mulamd Yabr Poldi

MMging Director, Poldi's (P!,t) Ltd-Kdachi

. Mr. Syed Jawaid lqbal

CEG cMc-the lh.g. Mslkctiis Conponis, K@bi

Exccutive CoB.l, Sattd & San r Compey,K!&hi

Cbicf Er@riv., Multire.[ Mdk rils S.dic, Krehi. Mr.M. SeedBhonb.l

Bhonbal & Co, (!mhi

. MrZ&I4t lPrrirt d, D.&nc. RiiLd Sodry, Xn li

. M! Ab& l,tuIlliu Ab.itiCAO,Kdi Co@dl Fd!4roAl&r& Lr

. MrlrrhodNrrr&LfrhAtddhnl Plo.nl!', rln ld

. M! Irna. Srllrrhd of &. I&A R..d bli.d.ir xjr h

r LlrlildltrllEl ILSr

INTRODUCTION

Evcry 3tudy brr ii! oM co!6!aLd purpo€e lnd diD€olioo, Thb 3rdy itlbcucd on rdr io6 b.hva t*! MlsliE couri6, ir. Kilgdon ofs.ldi Ar$i..!d blrEic R9ublic of P.tiiD. Tbc r..!oo of s.lccdng i!i! loic s! nidyrhrr wbcd l e.s in 3dEb of !ur6id. I Flizd rhrr $ 6r !o rlsarct sndy itrvdLbl. @ ihi! subjcct whicb codd @lyz. t .xi.li!g dltr od .outd

.lctcmi@ thc i&s! pcsibilitica h.twcco tlc two @uri6. It! oba oiiorobjetiE of rhie €c|!!h b thrr I .tn r Mullio .!d rhdlbrc utubtty coeatrod

r!o!t pdp6t3 of cocpardo witbi! th. Ub n- | .!r oDriEilric br . b.!ar.ldio$Lip b.lwd ny hom. c@ny, Strdi Anbi.' ud l[. coulrr wI@ I s

Tb. idtlductio! of tb! 3ady will foca o! t 'Mta of i.srcs to b. !d&Br.d&rougl tbi| rlsc.rct *orL Ttca ar! ccdriniy nc€d !o ov.no@ thc ho*t .nd

E-bFm hurdL. wbich lic bct*6 t!. tm @uEi€. I firely bcli* tbd rL.

cc@ooic @opoht of Sudi-Prl alrdon|lip c.! grow sr@ga s t r6ulr ofpu6uing cooducrivc policics.

'It. pnDty focus is od .crmmic r.lario[!, but rhi! sMy will de d.d ri6poliricd .!d diploDltic coopo@b ofth. cl.tioo$io.

Studi-P.t ..oronic Ebtidlbip fic.3 .on burdlB whic! nc.d !o Dc

.cklNldS.d ad llolouCy Mlyad by nuih.r rls.arct. I 9old [t! io

rtcod!@d .rclving . lo6g-r..m m!.Din iD o(tkr 0o dllt i! | 3yd@riic

'|E!M wilb lb.sc butdl6. lnpmvin8 U. lwincas eoviroo@ rld io .nt&.c

6. vduc of t!d. b.te6 tbc tm c@ticg it sqld b. e€!.ry ro !t!@tcth. eommic i .r!.tiotr &d pcoplc !o pcoplc cort .r

Tbc 'tsceh

could lc.d to though prcvoLilg Bul6, which *ill b. F!!qr.d i!thc bt ch.prd. The fDdils! e .xp.cr.d to povirt kcy fo. uddt stiog rr.cmoi sio.edorEi. li6 bctwd S.udi AEbi. .nd P.tilna A! t dla of

facl, I .xp.ct to find ot the r.asons for lacL of sl|I)(N ir !trmoting c4n.mn

In ord.r lo $g96l few id.s &d n.1hod. which could help h pomtion of.conomic coopention b€twen Saudi Arabia ad ?akisial' I havc slEt€d lhe

pdiod of 1985-2005 dle 10 the thrce rc!@s which m:

l) It is corvdg@t ova thc aamc pdiod of lbc C6rodid of rhe TM Hoty

M6qc King Flkl Bio Abdulrziz Al-Saud nomhi t tilg ch.rgc of Studi

Aftbi. .nd Kilg Kb.lid Bitr Awuleiz Alsiud daid in 1982.

2) Ljmiicd Dala ed i.f()@iion w.s a potcntinal resn in ordcr !o colt*lddbuild up . morc derailed ud berld cove€ing of tbe rese€rcn work,

3) This p{iod als coi6 e imldlart clddts of its @if, chaptcr No.4, wlicbwa fic for fiv. t@ pltu pcdod dd .ach onc @v6 thc @rjonal fivc t€r4onomy plaa pdiod Aom 1985 ro 2005. Th6. pl@ ale @vcrcd t@y cspocrs

of e@nomy, rade, developmoi &d, inv.rtndt of ibe fio couri6, Ti6. two

deadcs w@ impondt iI the SaudiPak rclatiochip N fte world 6oomyexpcrcnced monmlou cbdrgs which w€E boud to l€ve d uderiablc @k

T\xoty trs @sits of fou 5-Yd Pbl!' wbic! e quite raroBblc p6iod to

sMy, stibl. &d flEnlaring @nomic E6d! aDd hclp fmulaic concluioB.

I baE tid io .nsE rhc folowilt qurioB tbrcugh ny srdy:. whlt .t! &e @ir hrdt.3 iD srdi-htc@icretrdmlhid. How @ rhe.ludl6 bc r.novcd?

. ltAtl ir lhc ia6.r ofSioblizli@ d S.i{i-rbtdrtioosLip?

. r{t !! .!FtCi!S poliiicrl chll.dgcs otra@tld by thc MudiE wodd

al!€ctiDg Sddi Anbir's Gco-Eononical rclati@ with ?ati3rm?

. $udi Anbi!'s s!@ h wodd dpdt of oil dd r[. ute of othd

. S.rdi Artbiit lo.d ildlry lrd dorn sric cco|my.

. s|udi Aiabiat pLdc.d 6do6ic !b!t! rowrds Palilt r

s'odirPrt rtrhnt R.hd@

CHAPTER-1

SCIENCE OF INTER}IATIONAL RELATIONS

EnergeNe of llt.rmtiodrl Rclrtiolr .rd iis Odgitr'

Thc tcm Iibmational Relarios eneScd in the lSri ccnhry, the fNt p6onwho &d tbe rm "lnr.rotio@|" B th€ English Phit@phs &d L{*a*J.remy B@lta[ eho thougbt of taalatirg the pt@ lu g@1im , which

mens to the Rott@ the law rhar regularcs thon Fbdo$ with thc diflcicnt

.cighbousof liienEftpiF,byfiepbEse d.oithremolional",

T!.Irt nrtiotr Ph.mmdon

In thc elisions books (such as Torab Q!m. ...et ), and iD some legcnds Guch

a Grcek tu'lhologi.s) we find dsqiplions for cv.nr! ed incide* Guch swm, qodtB, trcrti.s, diplo@ric conracrs), ir *hich rlE cods. ?rcphcls,

Ha@s dd Kings play the mjor ddisivc rels rhat der.mincd rhe diErior ofcv..ts. TlEir main objeclive w3 to drive les$B md give neeins to th€

qistcnce of lhe hunan beirys and to the hlllm b€hlviors and 10 dir€ct theFbch.viou ro$id! c.rtain prilcipl* th.r dif@nri.tc b.twc@ aood .!d cvil

ed b.twd rh. p@isibl€ dd thc fodfttdetrj.

Thft ft tuy r.$arch6 on the subject of intemtional rl4dod. thc @inpurpor. wft io advi* rhe Enpqo6, Kings md RulcE in tLen |gdcBhip &dI@agmenl of lncir .ncmal elarions. A e@d €mple for ihis wre rhe

Chinac lhiloeph.r Mircnones, in rhe 4s ccntury BC, ed lh€ IndidPolilicie Kotelia at the we period dd Ni@la Machi.veui, the Lalie thinldi, th. l?d cmnuy dd rbe Mulin thinl.G ofrhe I 16.cntury, dd Al-Hstu

D,, Atu )3u /M8 h4tat o! hup@t R.h!tus ord DiptDq, "lrhatuda t.. a, r t3.te,|u,1.9.t5at/.adt1r

DL Morond lt.Hatft, Kbstun ol sd'dt a9bia. nNa sruD uNryEAfrn. cor.s. dlktustu tua. D.ponato|potntut s.LDe, ktudbr b ttuNttud@;.

bi' Abddlah Al-Abba3i or rL. l3s cdtury, ed lbrc Kb.ldou. tn .ll tbe€

Mititrgs re 6nd studi.s dd Sd.|?lt3tion3 on diplonacy - in rh. Mulis-

ThreaIter mrged witings dire.dy rclat€d to intehsli@l rcl*i6 eddlmal poli.ics of the st 16 in s fom of diploutic m.mmdls edjoumlGtic malysir wilh th@reiical dcpih (M!fl ed Anglca Anicld @

Int haiional Politics in Emp. and ih. Buop.m Impdial'5tic qpacionl

sludis in mnirary affliE nd strateSic thoughi (fron Mrchisvelli to Clauwiiz

h additiotr to the legal irrdplct liou ofthc Inrmlioel Law (filn CrcdN ro

laril md lhe lbut<s of l[. rb.oFtiql $hool of rhc 196 erN.y ad r[eb.giming of thc 206 cfiry), s well s |!s.eh6 in thc diplotudc bi{ory(ttlaties! rcsoliatioN, Decctul El.tios). whicb ndislcd with thc stan Aon

lh. w@d hrlf of lbc l9p 6tu y duc io thc .vrillbility i! abud.G ofdiplo@tic reord. ud &clents (sincc govdndts snd lhe Ft@b

@olutio! N no lo.ger imposiDg {try |lsEidioE o! s[ mlqials).

Modvd, the bisbncd B.eh n€tiods hrv..lralic.Uy deloFd wilh rhe

ilo.Mmtation tccbniqEs (in CctlMy aad tlFefr.. in fm@}

By rne @d ofrbc l9d c.nnry lh. i.m of "intcmatioml clrtions- dd "slobalpolitica' had widely !pr.ad, ed ldger att€ntion wd given to this ph€mmaor

ton nulliple bgles, thk Ms a clar ildication foi the irc@ing awmn* ofits inlodance (for the wid.ning of its $op. and ircrea* of ils dolsl md

ilane@u thr€ak (in view ofit! contradictioB sd th€ Do$ibiliti6 of@sivew6I lt q6 dso aidcncc of intcet in conbolling it by tougt action (uddthe innutre ol Lhc sculsis rhll sprEd duitr8 rh€ l9s conry), s s bbenelit fiom it or !o ni mia ib ddgcts, dd 10 t y to chuBe n (Mmis),Eow€ver, rhe $imc of iorcMtoml ELtiou did not rplE Etil th€ wdldhad wib6sd thc FiBt Worl.l W& h ln. hll|N lif..

TlE.mdgene orintemational r€lalions $ scientific ficld ofknowledge as per

the cocqsB of aU the souces bok plec betsrd 1919-193 in Britah udthe Unii€d Stat€s of AlMica, as fotlows:

IElrt: In May 1919, d.lcgalioB of the t K dd USA agE€d @

Atablisbtunt of sidrifc iBtitutioa tbat world E6r!b

&@rdtr lrmcdiat€ly 6.a.ier, the Bndsh Royal ldstin& for

l ematiml Af{aiB ed ih. American Cobcil for htdationatRelatioDs werc 4lablished in 1920 Gimih ictitut€ Ms soblished in

Berlin in Ce@ny- Howevcr, thc Univdity Istiture for Highd Studid

a4 estabushed in Gcncva in 1927).

Ihidu!: 7lt 16r Utriv.sity C6t . sp@ialiad iu Int mri@.|Relatios (udd rhc tillc of l.lcmdoMl Polili€) @ etablisbcd in rhc

Brid6h Unive6ity of WalB, which brd on M folow€d by orha

uiveEitiq in the USA dd rh€ &edinavid coutriB ad stowly soEc

olher @Dtries in Eumpq

The consid€ntion towr& intmrioml relarior! took nd!€r'atreltion in the

finies of the 2Od cdtuy, wh6 ftai decade winc$ed whrt wd callcd Urc

''old m betw€@ 1b€ Sovi.l block ud the Amqi6 block, this wd (which

included politiel, idcologic{1, inlcllaruat dd @nonic contlicts), had

pFdeed abudaDl studid fton borh sid6.

In l[. Sovict Union mcrged a famoB mgdinc slocialzd in sllrdie ofint@lional Elalios, vhich wd ritl.d "int tutio.al life". Ir @ lawh.ddlring t[e p.ak of the cold war.

Thc siatics of lhe 206 cdnny witl6scd itrd€Ftrd@c. oflmy counhib of&eThild world. their emergence in the int.utiodl em deated n.w kird olprcbles, Th. difr.cnca betwd thc Nori[ od tlc Sdlh, issE ofdenoeBphy, b&kwddncs dd rcgioMl dis!!t6, alt Ocse issu* conbibur.d

io the eech in inremiioMlElarions.

TLe fi$ advdment in t4hrology md omiorior am$ thc wo.ld ddthe ircrqsiog rcle playcd by the russ rudia in cicatiq closoes of ti€s

d@s lh. ditrqent mlioc ed civitiatio4, hr cbdged thc sh.pe ofintmtiotrd ElarioG dd thed it up rid. dom dd {rs cmtlLd lh. lr,lysts

of inlernalional relations 10 view th. hrScr intemtioml isu€s md to study

thm &d @nbibute b lh.t solution.

CONCEPT OT T'IERNATIONAL NLATIONS'Inldational relatiors e th. Flitical, Fo@oiq social, c' @1, id@logical

ed milirtry Dladod .l the lev.ls of @urri.q gtuuls of 6ulli.$lotcMliodl orgdiatiG. inld-govclrrlMill dernizatiG, non-

govelm al orgdizatioN (NCOo as well as tt! p.oples who N stuggling

Rlymmd Amn c@idw "1he lM of intenational rclanM is the relatioa

MdE stat8. since stat* @ @lonono6 political uits , Accqditreto hinpolitical unil netu any political group that ir o.gdikd .t regi@l lcvel'.

ThqefoF, rh. stare b llc innsrrucn[! for interoliodl rclatiotu. Th. star.

lhdl bav. a rcgion. popuLtion dd powd (sov.m@t) that exFss6 its

sov€rcienty, Hovevq, lh. Polilical Scistisl G@rgc ?urde believ* td, the

3r e is nor a rcgio.. population or a set of agulations..- b nl}d u

tuvid xdt.t, H@ Ritht 'd cattid

MhLl' 4htMdiq, K6e otsoai

i ell€ctual st$cfie thll rccogtrircs loyllty. h his opidon th. srrt k lhc Mirpilld fd politic.l powe!',

The p€ople e thc tuin basis for rtc d.B.nc. of ey org&iarion ddwilnour which lhe s@te would ncvdcxrsr. Th.r is whywe ce oeve' enviege

6 mdgde of statc wi$our p.opl., Egardlc$ of tbe tlmba of irs

individuls, local or *paEi.t6 Biding in ils I&d-

Adrding to uoi[a defritiotr, polirical powcr is sr esgtial dd vital pitlrrfd rh. qblencc of rhc sr.G, sinc. ir is rhc uiquc factor tlDr distineuishe thc

$arc frd orhq greugs, whil. pra.dcing irs &6onty {!d sov@igny @r .Iindividuats Biding wilhio ils tdirorics,

Politi@l power is rh€ n.s rhrouSh which tlc sbr. cm wddrake its inr@at

dd €xt @l ftelioB wirhout dy conp€ftion fron oth6. Tbis tre*sitaLsits po$ssiod ofpowd dd milirary @nmed s as io pbtccr rh. inicr€srs ofits individuals dd €srlblish.d gmups .nd rcguta& th€t afiaiB in confomity

wilh the comon inrercsl,

For ile slate to cxist, ir n.cds 10 h!v. a sp@ific region i.e. a e@gnphicjlspherc wheEiD ir cm irlly ptacric. ils sovmignty, The i datimal bord6d€lmine the region of each stlie.

'MwB4attatwnq.rtusdi4

The Sov€relgnty

At the inreMtional level, @h stitc hs its sv€Eignty dd p.rfom! ilsauthority ord its Egio! ad popnlatior wilhoul oy comFtirion Aon oih6_Th. star. hr! .b$lutc $vwigltyi !c@ it i. bourd to mirtrir irs powd sir[all po$iblc m.4. ft pNs6 actual authodty td lcC pqlp.clirc. Ir also

ha som. spaial poveB, snch 6 to initi.tc dipl@tic Elatiotu dd rhe ability

10 oter into inlematioml aereements, Wl.l dGrinSlishes the siai. d fieint€Mtion.l comhiry is the sovftig.ry.

Tle ri8hl of ev.cignty is b.*d o. Fv.ol nghc. sh d: rhc ngh ofenst ncc, so statB tu lor bo dcaicd ihcir dght ro conkibltc in inlturtioirllif., th@forc, n is Dot pmissibL for d larg€ couFt ro o@upy othc. mltcoury, This p nciple gives the srrlc fie rigtrt to pos4s w.apons ro defend

iiself as wcU a the n8h to ue sp€cial rcms !o etuu€ ir3 .xis!@c. ud

htem.do..l Or$ni".riouInld@lioDal oryeiatio6 ft ctucidied by *vml rulcs; including rde ol@bbeship of seveFl statq, the rul€ of will lowef, and av.ilability ofp€M€nl .xecunve oryall indetend.nc€ ed turcrion of coop.ndon'.

F.ctoB ldh.lcilg itrtemrtio!.| r.LtloltTh* tucros ce gcenlly be qtegodzld a follos: ld@logiol, $idtific,natioml, eodonic, d@ogElhic, geognpbic, nilit ry, dd rcligious f.ctm.

(t Id@loglcrt Frcror: Duing the 20'i Cotury the ini€mational relatioB

w4. vi.wcd as e ideology Nlcd rclatioru, as the {orld w.! divi&d

ino teo cmps, onc sialsr dd lh. othd is epitslilr BlrwD rh*two syst ds ile Ihird wo.ld @utri6 wft divided rmna rh6c t*!

7h. Roat E^ba,! attu 1Nr6. t4h'Mt6 otre, etud h tfdhtry@- u.s t

Id6lo$, 6 be d.tned a! "@U.ction of idc$" or "syst m of id6'Elaled to specific group .nd liil€d with c€d.in stage of tift, tbul it€4r€s abo btlori.al rcality.

(ii) Sci€ntilic-T€chtulogicrl F..tor: Thc dam of induhial t@hnoloey

merged b€forc two cmnuics, qir.h &a d.velopmenr of the @chines

lhat run by the souccs of nrgyi mdgcnc€ of factori6, &dintoduclion ofgrcsth prcducrion ar . lrg6 eop.. Win! the advu€ilg

of indutrial tcchoology, the hMd lifc v6 l{feled fron Fv€rdl

lor isldce, l[c inv. ion ofthc v.hicl6 influm.ed the way ofworted thc placc of rBidcnce s wcll s the my p.ople sp.nt rh.ir lcis@

tioe. Tlc ilvmtio! of lhc 6dio !trd tclevision ba cbdged lLe

c@ti@al traditiors of rhc p@!lc. As the Mltind @ now diGtlywih6 l[. evaB tal cat pbe in wiols p.rts of rle wdld at ln.tift of then occec!@, Thc @muietion rcrclution I!fuv€d rlE

bdics and now peopl. c.D @muicsrc illradly wirt @c edh6 far

frendist n* of lhoMds of ribmlcB.

Al thc lov.l otthe ir|.mtional rlations th. t chnological factor plays tvilal md *frenely inpoiant rcl., in th. niliLry, political and Fanslon

(iii) Frccor of N.tio.dhn: Nadonalism is wually defin€d ss: . s.oup ofpo!,lc liv. in a Dificd pi.ce ol lad, who shrcs one leguge,

traditios dd custofis and comon hisrory, This @h6ioD enables rhmto sh6E co@on f4lin8 of attachnem io a on€ @rion that is

distinguished iion oths EtioG.

Thc dynmis of Dtioulbm b d.dv€d from diff.ut f&toB thlidicct dd notivrtes thc ace of lotrlty d affiliatio! of m individul to

. sp*ifi€d uiquc soup. This setu. ofaffiliation @ exped or rLdine

in acedece to ihe sratus of $e goup dd rhe linitariois of llcgcognphical and $cial comuity. Th. boud{i€ of th. nationat

elmhity d thc @tion e th. inGmriomly @os!i2€d poliliel

ftontiG, phich usly Bult tom l[. d.v.lolmt ot sd6lg@gdpbicd ed bMu fa.to6,

(iv) Ntdootl rld Prtrio! frcor: Mostly iIft is nix up b.tw..n Oc

conc.ptr of mtlo@lbn and pabioiistu, d$pile the large dif.r€nc.

bclw.@ lhcao rwo conccpts. P.Fiothn nems "love of rhc homclNd",

and ile stue of i@. atlachmcnt to you oM @unt y, vhil€

mtiomlisn eem "love oltb. Biion". mil. tbe hoDcled b a pice

of brd ilat the irdividul gct lnacbcd by lis o. hd fdlirgs sdstitunts, rn ..tion is a group of hufu b.ilgs l} r sb!i. Bd@lddd|' Furhem@, rhc nationalism is ditr.mt thd patriorisr! for

iB broadrGs in sope, hdcc it includ$ rnor. rhd the coutry, and for

imlanc€ the Amb Dtiolalism sp..6d ovd lmy coutries.

Economlc Factor: The Manbts consid€r the e@nonic facior .s O.major re4on for the dlerycnc. of th. lb@mdon of intcmtional

disput , dd llar all lle qu w.E aggBvded by @nomic @ons.id

Pcdtly, the odEia @ unititrS theNlvs in e@nonic bt@Le

thbuSh initialinS inl.gntion pMcs€ $ch s @tion ol Egiorl or

intemational orgmiatiom, lik€: EutoO.m Ulio.t dseciatior of SdlhEsl Asian Natios-ASEANi Culf Co@mtion Coucil-CCC; lhc

Orcup of CEt IndBt ial EiSht Slar6 "C8'; rh€ World T6.lc

Org&iation-WTo; dd rh. Oil Prodeing 6d E4odng Coutrid-OPEC.

(vi) Dcmognphic F.ctor ft. d.mgdpbic f{cror, whictt is ercmh8 rhc

popll.rion, had pLy€d in lle pd a najor rclc in th6 rcldioft arM8nalons md p.oples, Hence, th. pow.r of dy notion ws @as!.€d by

thc nnmb.r of people, crpabl. of carryinA a@ ed going to banle

fields. Eow€va, tbe popul.tion pokr only h not 6ough to b. an

influddal fa€id in iltenarioDal politica, ifnot oDbiDed with Ditirsry,

t cblical, tutuic ud fuhcbl capabilirid.

(vii) G.ogrrynic Frcto.: Thc i.i6c. of G@polirie gave rh. s@gEphy ofthc stale pohical din€uioB. This $iene studid rhc inpacr of rb.

natMl geognphic @ndiiioc on rh. polilicsl life ofthe staE s wctt son its exrernal r€latioN,

Iliemtioml mtmqcid excheS. is e €$ential part of the oelity oflhc int€Mliotr l rclations. geDce, no coutry h tbis world thar i3

.b&lutely dependet on iis don stic produclion in tutfilliry iis

Fopulatios needs of a@<b &d spi6.

Honctovq eys the political gcogaphy h rLe snrdy otties bctwedn tlFLed &d politi6, ud n is a dury boud to show how politiq itdctcmjncd by gcog6pliol fac.ou- Th@foie n ddyzs thc impa.t ofcli@te, topogbphy ed fom ofdN.rd iln lirrlB dd trsdy llEimpd of l@tior @ rbc life of hlltM @muiti6_

The g€ogdphic frclor lcc4siratq !E study of itE onponmts of thhgeognphical factor, s@h s thc location, srca, bounddies md narural

(b)

Ceo$aphlc.l Locr{otrr Coutri.s with ooe or 'im s.a front

6 bdcfit fion ils l@ari6 6ilit rily ed Mnonically. Fren

miu.riily uFcl n cd build mvy flei ed obai! llsislllBfron itr ![i€. Aho tom a@nic eper, ourrie wittr sfFlts 6 bavc widd co@@i.l rlatioN with th. ext€tuI

world, while the l&dlocked outd€s @ depcndcnt on the

neighboB wno havc sa frents. AmbitioG of ledlat d

coufrd hare .aN.d nany tu ir the past.

N.rllnl R6ourcqr Natur.l @m6 ilcluiL oil, ed, minc6ts,

walcr, ad fd.sls ctc. Thc$ cldcnB e oaidd.d as ole ofl!. asdtial elen€nt in melsirg th. pow€. of staic or its tulc

in inteMiional relatons. Coutrie3 that poses emugh natual

rcsowa m build shonS .@nony ed previlc wclfaft b its

p@ple. If th6e @ I)]Mgcd by s expdidccd ed eficient

Sovdll|@t 116 rbey M rle onhol rbe ilrc!trNd@al Mrds4d bare efrdi on thc policie oflhe oild @bEi.s, cv@ ifthcy e strongd and biggcr, For i.!t nc. Uc AEb c@ti6 b.v€

used lhe oil 6 wdlon h &c wd of i973 agaiBt ih. W€st€m

alli* of fien €reny IsF.l.

FiMcul po*s could bc s€.urcd by rhe surplu foc'gn

.xcbegc go@t d froh cxporls of mlud !wl:!c ddfinishcd go.ds. Thc fMcial srahs smd by ih. King&n ofSaudi Arabia, Ktruit ud th. Unilld Arab Emi6t s is ofpoliric.l

and fDacial weighl. Th. ole of th€se countiB o the

intcMrioBl Elati@s ha8 improv.d .nomowly wiUr rh. bc@o

(vin) MItt rt F.ctor. The $at lhlr opts ro build milir.ry powd ud Eli6mirty on it ir potecting irs sf.ty i! in a diE ned to blild . $lid

Ch@terisrics of lDliti@l dispure bie cbmg€d a tot Aor d. poel, rbis

chmse is manifesred in a nMber of tundan€lr.l aspecrs tuh re:

i) Tle ability to strile a suprising aiack b,3 gaio€d a grcat

impona[cc, wbilc tine lccd.d ro girc u ddr is fq s@nds or

mNuy nm!r.s.

2) Th€ IBi strikes rhat e to bc ditcr€d by a courry agaitur olhrriv.l could be fai.l; rhis b @ll€d de sbiliry ro dcshoy thbu8h th.fmt st iL.

3) The couEy ihat is subj.cred to a mssiv. atlack my nor fndtuugh dm€ ro Eover eDd lmobilia iis nilitary ud politicd

4) The amcd dis?ure whd sians n @ub d.v.lop dd .ndt ar

dlorishing switoi€ss.

5) The pa@ for dwclolmcnt dd €hdae in w6poN is vcry fst ddsDbatartid.

5) It is no long* F$ible io clain thnt d incrcde in nilirary powd

oI the statc nn$1 ntressrily be folowed by an ircrcse in $esd. o{ eti6,l suily. Thc Fitity of rhis sinution .r pllstis conFary ro what prcwil.d th. pdr

7) The nassive d6Euclivc pow€r of l{eapons pNs6scd by rhc big

couEics mals nilitaly 6@urer very mdcsiEble.

Thc nilinry pow has dlways b@ dd will rcmd. ro b6 or. of rb.influ€ntial and d€cisiv€ Iacto6 in lh€ intematioMl r€latioE,

(ir) R.ligioue rxbr: Tbe Glision is a pIlF* ofsubDisio ard soughr

aftd $ppon Aon pown $lEriof to hlllM b.ine, md bdi.v.d ircoftols the naturc d w€ll s ih€ huhd lif€,

II|fACT OF RELIGION ON INTERNATIONAL REI'\TIONSItr lh. world of tod.y t!.a.E nny politic.l puti6 &d mv€futs with

politicrr pri&ipl6 .!d bcliefs thit u. b6$d @ EligioB tcachings. ln rtcIslamic md Anb @uhi6 lIeE @ tmy p6nis of suh !t!e. In W6LbEmpe theE m D@o@tic Clvisrid pania. In th€ U .d Stltes of &ndi€ilre Cbrislim nght wiry lobby hav. !ow6 ovd thc le5d6 of the R.lDblicoPrty N w€ll as the De6@nlic Party.

Religion Nd lo be in the pa.t and still todly is one of the nosr inporra

factos that infludce 6c b.havior of thc individuds, orydiz3doB md

courries .1 th€ int@tional lcvcl. Th. Anb of Hiju in ihc m€dieval .8s yirh

reUgiou notivltior ba c@qucc.l th. Ron@ &d P@im .Dpi6, whicn

9w lbo t!. two mjo. supd pow.R thlt rul.d the ddb, tben @in mtiEw4 to sp@d tLcn rcUgio!'lslm . Thdan r, th. Wcsi.d E@pan Calhotc

couEie Luchcd rhen crudc wa agliBt Isln .rd McliG will Eligioumotivatiol TIE Christio SFin lawhcd E agai.st Isbmic star6 i!Aldaluia od Cbristid Cburch a! wcll joired Spain in iB wd agai.$

MEli6 ud Jm with lbc notiE of sptradilg C.tholic Christieity ddgsrlhm Mo6ver, lndia wal divi&d into Paldsta! and Indh d EIisiN hGi!

ISLAMIC PERSPECTT!'E OF INTERNATIONAL RII-ATIONSRef.renc. sowa of lllanic docttinc for rcbdons among mtio8, t[!t is

agreed Lpon by majonry ofM8hm schola.s !( as follo*:

. PichteoB sur.n (sayings, da.b ed tppnvdr of the Prcph€t

"PBUH).

. Ijdhld with Opidon (has i$ scvc'al ncrhod!).

Md xde. th"6 utta' ." co4nd &!tul vM o'11 r'Lnt prytia dkq@. PdM Pa,r..Mdrt. hthtro,tl, ret.- A/,,nM ht t .tiltctfittx

Th. lslamic doctinc dirirlcs

ilto rhre sctiG €acb !@.dFl.tios amorg .atioG,

Hous. of Islrm: ls thc aratc rhr h gomcd by . Muslim oL., wi@iralthority and suF€Mcy e for Muslim. Slcb stare should be

potrcred by MElim add Jihad for ils s*e i. cde of no M is

ucondilioml obligllion (noi evefybody should do i1), btrr ir d omyinEdcd then hd then its rcaistlnce bdom6 an obligation on alt of

2) Fous€ of A€re.m.nt or Hou$ of Conclll.ilon: I1 t thc 8retr9 of@hics i.!al ar not tuUy domi$tcd by thc rulc of MusliN, blt barc a

6!.ctc<l agncnol and $v.rcignty over thei.lddt cvd if iD sre66 n isn't a tull sov@igaty. lnm Mohmd Abr A[m et3: Tn

!s.nt Unitcd Natios Orgdialion gal[c6 lll its meob.B uadd its

chdtcr dd ordd, tbu rll rh. Mlslih couFis thar e mcdh€6 ofthis

olgdiation iLcy dc bud by thc ruLs of hlm ro abidc dd adh@ lo

tben oblisarioa towd. n. T!€Eaort, ir @ nor b. @Bidered s EoEof ade€Mi6 bur a houc of a@.h.nt.

3) Eome of wrr: Unlik€ thc Houe of klam. th€G is no @IIs€lM oa uedef@ition ofde House of\r'r'ar. Hovder, rh€ Islanic scholu hav€ two

Fir* Opinio4: The Houe of war h ihc hous thrt no power or autbo.ity fdthe M6lim ruler ov.! it and also no agrccnot or haiy b€tw€m it ed tbe

S€cord Opiaiob: AtEibut d to Itun Abu Heifc, Z.idis dd othd rcholars!

who all agEc that 'lf rh. lDwd lnd aurhoriry of th. hoM is wilh the noD-

of Wd ed tLe .r! tbE @ditios

rulcr bd !o poed or autiority to

Thinl CotulitiM: lt th. M\slim or the Zidi (Non-Mustin who is by ihe

virru. ofagrcd€trt should bc Fated .s cilizer otlh. Mutim [oe) is

living in the olh.. nouc und.r th. .dlilr Isldic *tuity dsl|mcc i!.tembl.d rhc Mulim ciri@ to tivc in ir.

ft6e cmditioc G lpplic$lc on counFi* rhir G @!t olled by Musli4and t!.y Mchcd to o aglltfu ofef.ry to i[Gi. ciritu wilh iB origimlp@ple od rbdatc. thcy wcc coblEllcd to pull our, cilbd rhrough tt€ faclor

of wtr o ay f&tor olt r tlo w. If rhe .ouri6 p@ch€d rhen a[6agr€ddt of gtu1ing sfcty .3s@cc io ihc Muslin cirizc.s, r[.! it b@b€s

Diplom&y rnd Murgem€nt of Int€.!.tlotrll Rel.ttons

Ir cosidmtion of the vid rhar rhe scoF of diplona.y is the extdalrelltioG of the stat€s, snc outhos are of rhc opinion thot it to@ ihe $ideof inldational r€latio.s. We iind this vid ar Ue d€finirions of Cah, who

delDed diplo@cy a th€ eienc. of th. rclatioN anong vriou @tios tbat

e bed on Ihen munal intcresr!, rh. principla of rh. inrerMtio@l trp ddtnc dticles ofagremdh - Wlile HaFld Nichobon dcfirB n s: ..Direction ofiDtmatioal rclatioB tluough rcgotidiou ud rhc n€1hod by which rhe

dclegat6 naag. th6e rchrion!, d eclt s r!. work of th. diplo@rs"_

fi.st Cardid!,r If th. Mullinituplq$r ihe Isldic bs.

SecoMl Condirior: lt rhe rcgion that is n€ighbor'ng the Mulim boMinposes threar AND colld mak sgsEssion .gainst the Mulin houe.

fi.Bd ee. cMot:^.tud

DilloMy is a !'olitical pMes used by rh. $ate io nnplemcnr its foEign

lolicy in its dedings with the othd coutries ud int hari@.1IEBN dd the

tlr,Dg@lt of is oficial rcl.tio6 piih thc othd $rca withia i[cintcmaaioDl ord.i l! is also tL. an of |lpwtrli4 rhc govmr ddmintainilg rb. coutry's illesr wih $. foEig! govmndr' Mofurd, ir itabolt @a8ing intcurioml d@lings $rclgh .liEiting lolitical n gotiatic,ed condedng follow !p in emrdec. !o the denred instruciiotu, dd towo* for idplcmcnting tbe law in iniefurion l rclttioa, in such . t:md r[!tbgar pridcipl.s b.com. thc bais of &slingB amolg @ti6 a.d p@pt6.

We @Bi&r diplomacy a rhc @in r@l fo. fmign polici* of rh. stde,which dqk wirh thcn rcbtioB ud int 6ts, &d rte etr€crive diploma.y is tbe

one dEI is lupponed by all lhe prcp.ganda q the political, pychologi@t,

e@nonic ed bilitary tools. Many datysls coGidd rhar the prin. obj@1irc ordiplolMy is to s.ttlc diegI!.lMts bdwcetr @urri.s ed op.n avducs fd@ lcrs u@grt tb.f, in ordd to &hidc this objeti€, diploD&y pl.y viial

relc in t[c frcld of itrt.mliobd Ebrions.

II is through diplomlcy rhar the intcnational political r.lations ar. caribtisho4

st€ngtheoed and all tuti6 relarcd to vaiou courris lrE son€d our, ddconnictcd intcBls and divdrcd vi.w! @ @trciled. It is .le thrcug[

dipl@cy ihrt ecb @mEy @ sragbd its position &d Fh.n.6 tuilllutuc i! thc facc of othq @uhi6. I}@foE. E c$ sMc rhat

diplodcy k a &ivbg fo@ fd iltcmatioMl lifc &d the fotu of its etiviti6,diplo'acy like an administratio. ifwcll mdaged it csn create nuncrcus gaismd achieve nost of the objelive that aE pmued od most impod.nrly ir ceoable tbc !Lt to 6sme the llatu5 it rspiB ro, amng thc inremati@l

Diplomcy md strat gy e rwo compLm.niary 6p.ctr of the an of potirics.

"Diplomcy dd sirateg/ wiU n ih€ concxt o{thc ui8cd foreiSD poticy ileoryaa the two coaeponding facets ofa one .n, which is rhe !d ofpolitic".

'?he !a oI politica is U. an of @mgcmoi of dealirS wilh olh€r coutri6 inpuBumce of notioBl intcrcsls. It is frcn the uc miry of lhc a|t of poliriBcon s thc id* of int€gntiod of si.arcgy dd diplolruy, cach of rh.D is e !athat dr{,lemenb rh€ o{Er m 6. ofthc two sp€cLs of th. art ofo. ,oliti6.,.

Bilar@l Diplomcy is tne diplonacy Oat is carrblish€d b.rw.d teo clMEies,vhich is @Eidead onc of th. eai! pitl6 of rh. irr@1ion.t d€atil$; its

signifidcc is based on nMcrels factoF inctuding thc fouowing:

r) ll libBr.s rhc st!r. ro a gr..t qr.nd in dcrmirilg iB objdriB and

ord6r5 away fiom rhc Gnictions tbNr e impo6€d by rlE irretuarioDl

D t is oncn norc cfcctivc rhd rh€ lulribt 6l diplolrcy or Oeparhm@tary diplo@y, since n (i... bihr.at diplo@c, b lihircdody ro tqo p6ni.s, ud ofuo rlF di$ssion dd d.b6t mong mutipl€pani6 od c.iain subje.r, may c.e loas of t[€ inportalce of thrtsubjeci a Ell d it3 cultlnt Golurioos my lo& sie fituce dE to4on-comftmmt on il| lErt ofihc nune.ou! pani.s.

The oltcome of bilat ul diplomcy is 8.n.hlly beneficiat ro the rwo

concemed prli€s, it is obvioE thdt the mre h numb.r of parri.s

involved i! nesoliations, th. lc$ is the sha.e of cach of 6e'\ md hdcorhe distribulion of sha.cs is mong bigS* numb€r of parlis. Ift is

@E evid.nl at lest with rcgard ro two partics.

D

5)

Bilat ol dipl()lMy is smetimd ed ro pav. ttc paih for |h.

The npidnss a.l @inN of conducring bitaleral conbcc iD

@mpar*on to rh@ onduci.d dong multipte p.ni€s or in the mnrcxt

of pdltumtary diplotfun shc. thc bttd is li.k€d *u nuftmqAEicrios rh @16 i@l.mi o tn. EquillIMts of rbe poliliolsituatid or the is. lhat is $bjat of rhc dision'D.

Theorl$of lbled ion.l R€lrtlou"On. of ihc @t &cient phoon€nors in th. con&dpo€ry intedado.al

cornmuniiy is Oe phenon€non of na$onalisn rhe nation'. Itr rms of tine,tht phcnommon ftrged 4 influenlill powq in ite srructu& of Ihe

DLMlioDI colmiry d well a in diccring the inrmrio@l politiB ar thc

cdly yca of the nincL@th cd$ry, which B rTom rlcEnd ..g.dtiodlis c6"- Howa.r, @riondtm hs d*lop€d d a cLa. id@ 6lyduing th. twdlieth qtuy, wh.n morc eldcltric (mid@tid wa! giwn to

rht conc.pt, so s to dcrmin€ its mding, in et.o@ts dd cff€is. h l.mof plac., nationsliM 6Btly mer8.d in E@p€e tulmMirie, dd spnld,rh..eafter, in di{fffit fotu lo thc rcsr of thc world,

Dr O.orgc HaM denEd NalioDdiim d si.l @ftacr of!@pte havjrg

comn lalguge, g@gdpbt bi.1ory, ddtiny &d joilr mrcrirl @nomic,nre€q Fychological cdturc. Ttb @ntt&t shrll oE rh6c .t.nc.rsdloac|nca. While tLe Italid Mdcini, d.fr* ir 4 9{airal o'muiry ofhMe b.ings, that m linLcd bgcln.r pith the uiry of r.dlory, origin.

@dilions tud ldeugc, 6 a r€sult of shding life ed s@iat fe€li!g... Tte

ndM cqt4 caqtu o/11L w'|d 6hsh4 ad ctultt cni4 vam d bt@t pue.aba 6

D. .d.8. HoM.i b@. "t1@6a of/a6 N.td.|h".

definido by Mscini, is considd.d one of rh. Fosr inDodsr snd knoMdclinitions of tratimlism.

Th. fusr rhing wc notc in M|lcini's dcliniiion is his st rcd6t i,cr .tEtunl

col)llMity of hl:lM bcin8r". It i! kloM rhat som. Sroups or aUia&d Mybc fom.d lt ough will $rcma bctw.6 soF. ildividub. Bur nadolalissr

accqding to Mei , i! fom.d !d d.v.loFd du. to & ircdtive of thc

@ture of social I'f., lot Aon &. will of p.oplc dd th€i. lrlllg.tMrs. Tbe

.ld.o$ of natiotrdim @.e follNs:

Unity of Orlgh: Son. $hdd of Dlion lim i@ludi!8 Mreini

!@civ. rbAr uity of 6ci.l oligiB fo@ . kcy pill& &on crisr@ ofGtioMlisEr ed it i3 eiriour hmooy in t[.3rnEiE of . Drio!, t[corhd.lddis l@ in ligrifi.ec rld cf6dv6* a e .ssi.ri@ll@g t!. enbd. otUG singL drio!.

G@gnpucd LlIl46: Thc s@gF?hiol cdrElio.s of gDy @ri@

apr.3.nr iB cnstcmc h ! joint rcgid pir! clcrr llEiiori6, Tb.

clletivdcs of UG g@gnlhicd coEeri@ ilctEs if lhc Egi@ i!having ec.ssibL @muicrriotr .!d ralFiltion. Tbc .vdlrbility ofr etion ir @c Egion wodd srEgthd r[. inr.tr.rio! 0!d fo.tify ttc0$ociatio! uong ll! iadividuL of thc lin8lc irtion $ ! |stj rlrc

intctution ard .ssiation would corEibut ro ihc blitd uD of tt!@tion\ p.M@lity ed srEgrhcn iis chdctcr

Unltt of L.Dgurge Laguge h Oe n$t signifi@t dd important

ddltrt of @tio6li!h. In vicw of thc fei th!t, t&glrgc is th. rEdihof udcdr.bditrg md @nhuiqrbn Mort rhc mmbd of l[. sinctc

ddon, n ir Ocir iBiruhcnt ofrhilking ud rhcir ncbs for rlsoiningtloo8hb ed h*itrge Aom thc foFf.thd ed fa(h.r! lo rb.ir etu dd8tu.,roos, g.ncFtion to g4@tion. Th.eforc, ve fbd tbat uity of

ldgulge produ€s tind of unity in the feelings, Fnrin nB, thinking and

cultur; n com4ts rhc irdividuls of the mdor with a chain of i .lLctdd with €notiml bor&,

Ei|tory: Flistory is co$idald s rh. $rt of*Ge b rle mrio.nd its

|ll€mry. Ai evdy Btion is @@ioa abour irself dd buikls irs

p.BoFlity lb@gh its bisrory. W!@ we ralt ahonr history s delen@l of mtiotr lim, e. dotr't n .! thc hjstq tblt @ Mrcn mbets &d d@u€ft, but wc m.e rhc history lbar is living h the h.urrand sliriis of lnc p@i'lc, sticking to then mind. dd doniEring their

Wtd@, the uiiy of hisiory in ey drior g€trmts clos.nes irdorioG ud t ndoci€s hong rh. ildividu.ls oflb mtiol! it.lsolads ro tind of simjl&iry in rh. m.mrics of their aloioB p4r wirh ibpnd. and nobility, whicb ka B@Uy reAl.d to Eolilia 6umgc rdddgi6, with ilc plrpo* of @lizinS thc turue aspinriG_

R.ligio( Religior crcrles kind

ihe individurls b€lonairg to ir.

senlinents dd enoti@s ihal

prcsp€ctive, Eligion is one of

of hamony dd mity in the fedings ofIt GNcctr ad reviv4 in them mciofluoc€ then behaviq. Fbn this

ih. most 'mporlanl

social bondi that

FORETGN POrlCY

Noe, @ming to tbe to!'ic ofdiploruy, forcign policy ptrys d iorprtanr relc

dd dcfin d a ihe deisions or csolutou rh.t d.tcmine lhe ex&@lobjcctiv6 of the sratc dd rbe esw thd e ro b. rat@ to in@ldor thos.

Thc p.occ$ ofd€cisio. b,line is quiie complicatcd prcce$, baaue it di{LE

tom cour.ry to cowtry, according to ihc polilic.l srruchtr€ ofrhe sru!., ard ir!

'nt€hal 3yst m. Reggrdl€$ of 0F nahrc of polili.al systdtu, a ndb* of

eov.mdal ed n@-sowdnslat bodi6 iE ilvolv€d itr th. .lcchion

mlking pc*, which my blre difrefur posirioB towards uy mtioDlpolicy &d ba thc ability to inlludcc rhc govcm decisiol This @ tdilfctuii.t d b.rw@ covcm.nlal bodi6 &d N@-cove|lmotal bodi6.

Covcmenrol Bodies, rcpE!.nl €ompou cd €xmtive powcr dd its

Elated oryeietional orga.s 8trch s minisEi6, govemdt.linsiitulions 6 weu d the leSislature and its vdious r€lwet cominds,

Non-Gov€@ental Bodids mosrly conpnsiq on the dmdts ofpoliticar par6e, intcet goups, pB, Dcdra ed public oprion.

FACTORS OF FOREIGN POUCY

Thc.c arE tbc typcs offacbrs which itrnud* th. tureig! Flicy in gdc6l,

l) M.l.ild pemu€trr frcror! wlrn rddlv€ perm.nercy: By rhis, wc

ne lh€ t}?e of factos thal do not chbg€ within a short p.riod of timc

such as gcc/national /idwrrisumiliraryed hl)l@ f&to6.

a) G@gtrpbicrl Lcrtion of any courl r,ks high6t position

amng de pman nt factoB. A ldd l@ked €outry, fir.Afghardan, iis l@ati@ ihpo$ Brnc!@ on its f@ign policy,

it 6 @t toldre a long rihe dirpurc wirh rh. @may &!tprevidG the !c@t s outlc! strch a ?aListrn. Likc

Afgbmistan ad P*isnn, sinillrly n the {k of Stria edLcbmoa si$. Stda swound. Lcb@ all ldd bord6 -?x.ep,

lo. the South where it bordeB ,bz?/- this inposes BFiction o.Lebmon\ foreign policy.

b) Nrtuhr Reourcd @ lbc e@!d pe|fue fEcror of &c

mt rial. Anong r[. drural rlsol|lG we ce fels or rtcprodclion ofmtional r.sourc.st i! rem as strarcgic goodt ruclas oil od food poduct'-

2) M.terirl &.roB have les coniinuiiy dd peM€ncy in complrisn to

dE prdvious facto6. It irvolva th. hduiri,l dd milit ry plsrs d

4 IldBtrirr Crprbiuu.r e e .sodal clddr in lbc FwG ofrhc sbre- Fd i6r8@, rbe indusrrid 6pabi[ti4 h.d @blcdBritlir lo c@itol l!. b.ldc. of p.wq in the wdld for quitc a

pcnod of time, &d eavc Jape a spccial slatus in $e wdrd

comuity. Morcov€r, il mrdc USA dd Rusia thc sFong€st

powe* in l[c comunity of @troc in tod.y's world. The

.xist nc. and avail.biliry of indBidal iff:ral|3rioB h qr.inst lc .106 trot olly coet thc sllldard of tcobnologiol know-

how ndiols of advdelMt ir ba achieved bur. als n@ifdrs

iis @ononic abililiB, thhugh which it 6 bund political powc(

Industrial .levelopmcnt has b.com a mti@lprimc obj@1ive for

both the tleveloped s well s tb€ d€veloping cowi.id. The

Kiosdom ofsaudi Anbia has .slablished Ar-Jub.il and Yalbu'Irduirial @@lexes $ cmiddble sride rowrde acht vilsthis impo.tad mtioel objetivc. Patistan on is p.n .!o Md.@rkablc indlsLial achi.vcDed! itr rhe sroB of i.xrilc,

pb@ceuticals, *nor &d dre ste.l lil€ ln€ ?akbh St4l at

Pon Qasin. Thes ac@nplishn€trts md. Plkistan noEpowertul €@rcmically and politically c@fident in dealinS wilh

tnc iniemtional comuity,Mlir.ry Comp.t oc6 s 6ully liDted wilh ildNt ial

epabiliti6, md rhc Btioc indutrially adv.e.d @ gd@[yspablc of developi!8 th.n hilirary opabilitia sd .dvdccMt

of their hnlwdc. The El. of military epabilitie,s a factor, in

the forcign policy plays e iqDrtanl mte mq. rho th.l of ihc

gd@l indlstrial capabiliti.s, fo. a mjd Edm in rod.y's

world commuities ore ruled by the f&to. ofbalane ofpow*.

(t\ Qnrtuanve Asp..t of hilM faclor is rep@Gd hy rhc

population, Th€ populatiod plrys & iopondi ml. in rhc

f@ien policy of day strt,lb@gb their.Iter in its

@ti@l force. In thc ti@ of p@ce, l[. big siz! ofpopulstion ha di@i inpact on tbe esntial clm.nr ofpbducti@, which is UE labor. Wilhour rhe availabiliry ofthis factor, the socio-cconomic ileveloprhl of rhe country

will dep€nd on rhe idpon of fdeign laboB iritializils

(ti) qahanw ,{rp4? is rcp@r.d by thc lad6hip,id@logy ed lhc mcdia. Th. laddship b6 a cfuid Fl.in dirEting the foGig! policy ofthe srab. Wlrlse. rbc

systen of the 8ovclM61 roy b. the h@d of thc sr.le

wil be the onc who tats lhc initi6tiv€ of conrult!1ion

with his adlisors in proposing 6€ fqeign policy of the

couiry. ftcrcfore, thc quality of the l€ad.rohip is quit€ an

inportant factor in thc Dr&iog of the forigtr Flicy, Wh.n

w ralk .boul rhc l.addbip, we necd to tlow $.checter of 6c lad.6, and to ob*e lhd ptuti..lly ro

knop tLcir s@ial betsl@4 clN, tben €ligioBct]mitndr &d thcir pGonal ed om.ial b.h.v'or.

Th6e f.croB hrv. rhcn impact oD the l@dcBbip dd@sequendy i. the fornation of th€ forcign lolicy.

(iii) /l/eol,&/ is .ldnd of fi.anewo.t gdehlly us€d 'n

thc

fomtion of a forcign policy of a siate to dcf€nd thc

tghts of rh€ populatior Mulid in Afgntuison n uE

past or rb. PhleriEirde at lBdt d d.f@tion of lh.Eligi@ of tbc sraL e rL. t@l qrspL *hd. joirrdeisio! s otd by the Kirydon of Ssudi AEbi! .nd

Palistar by withdnwing th.n dbNados &om Dcnn&k

de to publicaiion of picfile defrninS Prcph.t

Mobmed (P.&. Be Upon Hin).(tal Me.ht de plays d iDport !t rcle wbich b no ra

iDpdranr rhe $. idolory h Ille fmign policy of ttc$ale. A! tb€ mcdi! plays a dual ble D i umirg fNignpolicy. (i) On rh. on. b&d, it plays ole ia rbc Foplg.rionof lhe tuFign policy of t[c stare by providing thc

rcBsry infornation withh their tlmcwork of ll€adtuceret of th. m.dia, whicb has abniry in Ssthailsdd ddFins ibc !am. (ii) O! tlE othd, tbe dle<li. pt r!a vital rclc in inflwing lLe lublic opilion ddmobilizitrs thc t|a< ft @ als play si8nificalr EL i!sulponing or opposus l[c tueien policy of rE8ovffir. Thc suppon ot |bc b€di! to rh. fo€igD

policy of rlc govctrllmr will help ir io obbinirS popule

slpport for ib DDlicica trd its decisiG. Th. opposition ofthe nedir will Btict thc govelmdt\ .bili9 k' tlksleps deitrd by it lld slowdoM pFqs ofimplmr.do of iB .L.isi@ and my cdu th.rEqui'ld sppo ed ruL. dlc got€lmt wat @rgbi! &bi*iDg deiFbL objativG.

ELEMENTS OF INIEFNATIONAL RELATIONS

Burcaucracy as m Agent of Chrnge

Alnost every coulry in rhe wodd possesse! a bu€auotic inn!$.ucturc

which enabl6 rh. frDctio$ of thc govcmd to b€ ex€curcd. In sm.munrriB, it is moc $pnistiot.d $,' h olh4. In E!rcp@ @uri6 by th..nd of linctdd @nuy n bd d.rycd d a very onlld orgeiati@,o6in8 Mrx Webq ro obs.de l! n wB a poducr of legat-Ftionat ibintirgs coo!!.tcd qith lis typolo$/ of Faditioml dd chlisMtic leddhip. In

faci. ..cording to Web€r, 'the tunlq back wc tracc ou sreps, rh. norc g?ical

t th. abscncc of buEucncy dd ollicialdom in the strere ofdomitulion.

According to weba, bl@uc6cy op.rsr€s iccording to the rul€s sprcific to i!3

orguiati@. Blt civil dmjnismrion des nor opmre ir I v&uM. Il is

.loely rclated ro tLe lblirical sFr.m sd politic.l dcvelopmmr ofrhe @wr.y.

T.sion bdwm poliricll l.!ds dd bldrcnrs is prni@ldly @ttmn wh.n

thc bttd's rele is mt d.fued. Fou dimdioG to rhe Elrtion bctqen

buqucFtic rolcs dd the lDliliql slstcn may bc obsftd

FlBt, therc is the dcgrce of strucfi!.I diff€Mdlrio4 in which, thc norc

complicated lh€ lElitical stsren bccom€s, rbe grenrer thc tred for the crcatio.

ofa nd siructurc to !€rfom thc polirical finctio.s, &is6. Most non-W.st m

colnbi.s, after gairing inil@dd.n€., mbsk€d otr th. road 10 modmiation,which lcd ro structuml difffirjilion dd rhe @e.g€M of ibcriolulsp..idists to cope with dE dmads of thc politiet systd

S.cold dindiotr oflDlitical chang. k rhe Daglitude of polilical activi9 a!

compatcd with olher acdvnies in a scicty. The tugnitud€ ofpohical activig

is r.l.ted lo diffdatiation $d ilF cons.quoi incrcde il bwaucntic rutc.

Thlrd dinemion of politic.l chsgc f@ulcs on lh. deg@ of &biwemdtoB€ltllion rclativ€ to polirical Mruitln nt dd rh€ rcle dirffiri.rio! ofcandidatcs. tn political systcst witb a low dc8r.e of stucnlnl difiq.ltiati@,&t ody is goillmot a.tiviry cocapddingly low, but tte, in &tdirio@ditu !t ro tbe bl|!!.|l.@y tu Ntstty it@ud .giptio 6lhd lt.nachiev@t qimlarid Tte Bdc is Ele of gyst d witt a liah iLgE ofsrructuril difftutiarioo. for .s tulctioarl sp@ializlrior irlru&n NiI8 iolbc mifold @nplqitics of &Elopmnt go.b, srdd,rdr beotu r€€eryfor achicvdenr datati@.

Fourth dintuior anat]tsd the dcgre€ of s€culsiation id the perf@nce ofpoliticd tu&ti6- Tt€ bak of alt such actiors k det mincd by the prircipt.

of ratioBlity utilird by th. govm.nt ro e[ieve its @ds thrcugh r".iou!

ElemeDts of Historical rnd Cultural Relstion

KINGDOM OF SAUDT AIABIAIT

Klngdon olS.udl A..br. Ilbtoryh onsisting oi ttc Bdch pdiod (1985-2005) durin! tne moncrchy ol thc KinsF.ld the Culodis oI 6e No Holy Moque, ed sm. of hb political inr.d,r ed

l98s: visiis wahingbn ro p6ue Middl. 8dl !@e prms .

Laucb lhe prcjd of *ponding lh. Poph.t's Mo,qw iD MrdiDln

King F.nd 6ndm lsmcl's atuck on PLO ba.dquirtqs in Tuk 6.lhurro world p.e. md cilb or thc inimariond comuity io cond.m Is@I.

kinsdom'5 folnh Fivc-Ye& Pld lNnoh.d

1986: King Flhll adopb rh. tirl. c6rodiM oflb. Trc Holy Moqu6.King Fahd Casewly to BrtraiD St.e in lhc Anbign CulR opd.d by King

1987: King F,M hosb cisl t OCC sumit h Riyldh.

1988: Kirs FiM hF l[. foud.tie slorc for rtc dnd S.udi qpssion oflh. HolyM6qe in Mrtl,!.And with lhe rdvice of r Comulktiv€ Coun il (Mrjltu Al-Shh) of roydlappoini.4 Kitrg ldd wB a k y p.nicips. in diplomric .lforrr to e(l tll.lru-liq w i! 193E.

1989: Sulbn Qaboos sins uE..Ml in MlMt setrlins lh. bord.r d.Mcrrionb.d..n Sondi Aabia dd Olrn.Ir T.if 'Sludi AEbi!" t@milidion .iiotu @rd n"r bFusnl lbc l/Lr$t'nde Civil wft !o . close

1990: Ki.s F8,td ord* 10 flights lo dry on. nillim .opie of de Holy Qlm agitu io Sovi.r MBljm.KirE Fqhd @trdenrs krq s invBion ofKuwrir.Kins F hd rmouccs moves lo fom tne nd CoNuk tiv. Corncil.

'' io$or coh cM.ia olk ktu

KinA FlM d$!g th. cdf crili! wit! PGntat Bqh in Riyidn ud hil3L!d w @id b rh. dcployrMl of l!. USA-lcd wirb Srdi An!i. &dmlCDrio$l l@ njr.d .s.iEt lrq foltowins its inEid ol KluitKjngdon's 6nh Dd.lophcnt Pls l.u.!c<!.

l99li Kint F hd mow.s $100 nillion in aid fot victitu of Beshd.ln cycloDc.

1992: Kir8 Flhd a@ll@ nd ErulatiN fq thc Baic Syll.b of cd.nnalR.3ioid Cov.mrHt .!d l[. CoEu|hnv. C.@n.ln 6pd* ro e opF l by UNES@, Ki!8 Fabd ofid 170 6iuid !o n io!.tn! Mulin Holy SiB i! taurLnKing Fabd @d.lm Sanid l8gBid in BNi*nragoviu dd iritiltsDolitidl !.d lid .ffdl' 10 rlldilt sindi@Ki.g Frhd orde6 rt€ $m of '*iv! cncrgocy oid pmstu for MuliN in

KD8 Frhd plcdg* 150 niuion ro lid victim ofcdre qihqukdKjnl Frhd hGb rh. olc ru.tins on B6ir !t *nicn rhc unir.d NrlioD3 irug.d to e fo@ rc.jolr lt. Sdh€ !o p6tet Bo$id Mulid,KinS Frtrd .g@ ro md Sddj t@F io 6irr wih tA Eli.f op.ntid i.

193: Kng lrld b6ts nrrin3 of Afsho l.id6 in Holy Cig of M|lllh fo.3igning of nrtiond l@cilhlion @d,King Fchd cdls lof lh. Iifrin8 of th. lm cnbdgo d Bosim MNlim,Kinr Fand od.s dr. 6dlr@tio, of isid{1i.l crm!! in Albria fd Bosi6MuliN who trc victim of S.!b 'tthnh clc6sind'.

KinS F.hd ..lls fd r tllt to In.li 4gF$ior in eulld L.bm,KinA Fand .ddra6 th. fi6t sid oltll. Cdillbrive C.ucil,Ki.s Fahd pl.d36 llm nili6 f6 sirl mi6 rnd diliriB h Gs Srip

King F.hd i.tqlE .a Eruldi@ for dE Cown ofMinnic!.$!di toE6 st io wc in t N p@r...pitr! dlingd in S@Iii

1994r King Fahll ord6 d. inn diit. dbp6ich of rid 10 EIid. vi.rim of lhcIndon.sie eodhqu.te.

King 9and hots rh. l4o CCC Sundit3 in RiydLKing F.ld Previd.s nldi for @!o6ri@ of lrlm's .bird lloly 3Mft ad twoo$a Meau6 io Jdlald.

I995: Kinsdon\ sixlt Dd.lopment Plan launched.

1998r Saudi Anbia mk6 n cl@ thit US cmot u. s.udi Acbia lo laun h

King F.!d .xp66 pofoud @nc.6 ovd Ldi.'s nultr &3t pbgm.

2(FO: Kingdom s sdt[ D.Elopmt Pl& lauch.d.Abo Kins Fahd ha mdc bis mtrihrrid ro b.did. @liatioD ofr.lrtioa b.t*6 Arh8 Couhi6.Kiog &M dso exFecd his cohlry @ncd d a L.y ls@ oIvo doergr, th.t .4uilib.iun slDuld b. rcrli2.d in in(.mtio.rl oil rulca md@mmdcd .he or8oiation oi P.folcum axpding couriB io sie oilprcdDctim 10 27.5 nillion baE?k r d!y.

S o*. e : M. kigtuhnbifu b.lulaz b. c o dl n a i n

Thc Ambiu lminsula is on of rc ngioff dEr tdsrdi@ lo@ tiftlo abolt,

tlow.ver, ir is rich in old historiql nooueoas @ting the history of &cb€giming of civiliatior The ft$ studies of .x€kd@ itr lbe Fgion sbn d

only d the sixti6- Ahhougl thcrc e smc didclB, tbat rle Kingdoo ofSaudi Anbir w polulated for iitdnitldt pdiods since @li6t huruhisio.y. Pelrmdl setucmot darc8 brck !o 4000 10 B.C.

O! thc contary, lh€ 'isnificncc

of rlc Aebid P€ninsula rtbudonr t!.Islamic en is well rrDM. As ii was ihc ccni6 of the Eligiod of Islm, ihe

Ahbi.n PedNlla h!5 d eiiative ard ptumind! historical role extendine

b€yo rhe bqdes of IslMic wolld.

Tt!. c!r@thistory of S.udi Anbia start d i!lbc l8d cohny pld r[. prce.nr

Al-SNtl dyDAry b€@. a loG in th. cgiotr. Sludi Aralia sr.dned td66c mrr in 1932. Saudi Aribi, hls low b€om. a pcsp@s 6dlccbologi.ally advdccd couEy- It tu foudd on rh. old n iitagc sppDndby thc norlls of its @ti@als. Abov. all, it h .lc.ply mr€d in the Eligion of

In prehistonc tim$, Anbid Peninsula was very diff€ql fton wbnt w. hFwloday. T!e!e wft lal6 md inlald st!!{m, wherc now, thrc is desen Ntrd

slire .ocky plain. SIoft agc iDpl.he.t! bavc be! touded on lbe edg€ of th.

8F r dcseG rhe Rub Al,Kbili, indiqtirg tblt hur6 ed 6shd4 o!@

sinil4 t!6 of tl@ &tivig hav. be! dievlcd along rhe vdtm shoa

of rhc Aralim Cult As thjs acliviry ws b.foE 'ln d€veloped hisbncal

r.cor&, it is ele to sy that blM F.sdk s in thc AEbie rhinsola

Ir 1745, a rcligious Efomcr, Moh@.d Bir Abdulwahab foud tnrr sonc

Musli@ 6ist his m6sagq He was a vcry rcligioN IIn aid he foud th.tmey pcoplc did trot p..fom Gligioa rna pmpdlt s ne p@Led rhcm ro

rc$m ro the balic ulu6 of Ist.h. Hc foud pretcction in ihe rom ofDiritt,ru1cd by Mobmd Bin Saud. Thcy joined rog.lbd ed laid doM rhc

foudation stone ofsrde of S.udi Anbia.

Itr 18' cetuy, the pow* of the AI-Saud fhily errelded to nosr of &e

AEbian Potuula ircludine nuch of Odd, prts of Y@m ed the aM ofHijaz. The Asb.ise to powq aroused th€ sngq md oplosition oftne Ottomn

B6piE lhat had conirolled th€ Holy Citics of Mskbh ed Madinah in th€

w$l.n rcsion, Hiju. Then amics conquered th€ Anbid ?@iNla 6dsucc*d€d in €plurirg Diriya plhing a €nd 10 tbe 6Bt paiod of tbe Al-Srud

In 1824, the Alsaud family Ld by Tuti Bh ,{bdulhl ESain d po@ Md

captcd Rjtrdh la&tu8 tne €pii.l- Hc ed his $n Fdsal qtended Studi pow.r

that wd enst€d b€forc, blr thcy were un.ble to rcsioE MaU@h ed Madin h,

nris rule kst d util 1865 wh.n divtioN @1,td a pdiod of iGlability ihat

forccd the Al-Saud Imily to dep.n to Klwait in 1891.

Islan gave &c $!dis its dymism and rh.y sulodimt d th. whol. sthcmAnbia Egior and brcleht it Ndq lhcn coftol. By l??3 O.y hld taL@

RiFdh, thc whole ofNajd od He by ihc l?90s, ud by l8l2 th.y had t kdovd Hcj&, which wu held by ihc Hashmite clan - the anc6to6 of th€

Jordtuian monN[y. Ihe lask of dstroyins the Saldi,Wahhabi powd wa3

givcn ro MunMd Ali &d bir son lb.ahin rahr of ESDI, who had by l8l8detold Saldi-Wabhabi poed and .x@ted the Sludi Adn in

Codt ntinopl€. The Saudi faeily hld to flc ed Abd d-Rahm d-S.ud, thc

old ofRiyadb, wdt i oqileinKueairinl89l.

Frcm Kuw.ii in 1901, the foudcr of srudi Asbra, Abdulaziz Al-srud pLdcdb recapture tuyadn- Suppon€d by 40 ncn only. he succed€d id c.pluritr8 the

Ov.r th. ncxl 25 y@, ne extcnd.d hi5 inilun@ ovtr thc Ld, c1ltMtly

kmm a Saudi Anbia - All rhis w6 duc 10 hi5 stil a r weior dd d a

v.lcm poliricid. Hc applied rcligious Efom, a.hield loliricll sarbility irrh€ r€gion lnd tuintairql lhe rcligiou dd n@l valEs of th. Al-S.rd Royd

Abdul.ziz Al-Sau4 tloM by the AEbs a Bin Sau.!, had legdddy qualitie!

that qualificd hin b b€ a gr€at lead.r, H. was only 2l y€4 old whetr lE lcft

Kueair b rcclaim his frmilyt ldds. He s !!in€d ai wr .!d qurlifi€d io b.r srrt€snln- Spintudlr his faitb Eguhi.d his life- He obslrd bis Eligion,

sprcld Efom pE6.hed by Mohmd Bin Abdulqal'ab ad wo*cd

dil'Botly to adiur bn b.liefs wrrh rhc dMds of lhe 2Od cdtury. He

nastercd in politics at e @ly age thlt gav. hi6 th€ s6se how to udcr!Lndpeopl. md molivaie thd. Alrhough hd Devd l€ft the Aob world, diplomis

dd schola.s, who visited hin, wea surpri$d at bis howl.ds. of world

afi3iB. B.sid*, b.ing rh. f.!ha of th. Kingdom of Saudi AEbia, Abdul&iz

w4 boi! a g6t Eibal ladd ed a srat sJ@ brilgiDg ihe @ury inlo a ncw

S!!dl Arobi.: lh€ IIo(. ofAl-S.ud

Saudi Arbia tak€s irs |m. 'Saudi' tom th. ntine dymsty, which hsgovm.d lh€ Egio since $. .idr4nth @nury. Thc Srudi dynasty,

dcae(Ld from tbe Aua Eib. ofNajd, who elrbli$ed thcmclv6 s tu16of Dirila. Mutatr@d ibr Saud b€le thc Amn of Najd ed rbc dlieetukd th. foudilg of ihe S{udi politic.l sys&G. Tle alliec of th. nt.rwiil thc W6l[.bts gave the kingdoE moE IslrDic Lgirimcy 6 rhc g@did

A3 Mulmd ibn Saud bad giv6 ih. dynaty its blmic legitil@y, Abd .lAziz laid the foudatiG of t,tr dod.n Saudi shre. ue @rcr.d into

rgrc.hhls wirh Asdi@ oil compsia in 1933, .nd ihe kingdod's oil

w@lth, rcw edDg in rlougds of millioB of Ft o{oUas a yd, h3 mdcits polirical ud 6o.mic posd fclr rhrouShour tbe Mslin workl

Onc of thc llens fo. the kingdomt slability wa ih€ syslem tblt was d.3ted

for thc smooth Fesfer of power ftoo one king to anolh€r. WI6 Abd al,Aziz

dicd in 1953, poper pNed irto th€ hands ofhb ar lbn Saud, but hc prcvcd io

be incomp.tcot dd 6 mov.d frem his omc. by f@ily con*aB. F.b.lIbn Saud suce.d.d in 1964.

Friel Ms a comp.r@t ruld ud hade his kingdont pows f.h both in rbc

Muslin wo d (lbDDgh Islad) ed int tutionally (lbmgh oil). Foritrg lh.impaqt of Na6's Pd-Anbiso, Fabal rcbuncd it with P6-Isldjsn. In t962

hc rporsor€d a lltemti@l Islamic CoDfeq@ whjch lat€r rcsrlted in rhc

''. Mtd,rt oll4omtbn, tugtu aJsd'' r1t Rord Ehb&! attu ),ot'. rrlamtb, ofie. an ardbvq^46-us^.' D.id x*q, EM tj3tu o,n cn4tkt c.rM, il.4h d'd Htu tudets d

fomtion of tbe world MBlir Las!. (wML). undd F!tuat's lad4hip rhe

wML bede. powtul orgrizario wirb baeh6 att oq 6e wodd. I did

rot rcsldct itsclf to rcliSiou is!6 but Als tacu.n pohical isue .tferilg rh.

In 1966lsisal called lhe bleic aolid.rity dtd co{pdltion betw.d Muslin

stai6, 4d, an€r lhe bbing of rhe Al-Aqsa Mqqu i! Jtuld in t969, h.@llcd fd 6 Ishmic sl|mit con&lm. !t R.baq wtich re *En&d by oosl

MBlim 6udEi6. Th. R.b.t tuir grvc Flisl bb lGr .hane ro dped bir

,ph4 of i!flme, &d i! Meh 1970 hc spoMed lhc n6t IsLniccn .renc. of For.ign Minis&B in t dda!, a a sult of ebir,I . p.l]@c!tssEtariat w4 €siablish.d th€r. Itee have bM rceular cotrfMcca sin*,h6tcd by differcnt Mulin couri*.

In 1973, ir r6poBc to Am.riq slppon of Is"6t against rhe Arab to.cB ofEgyp add Srir duing lbe E, r.isal c.d oil s a lolilic.l wapon.gaisrthc WaL lJsdd bis inlb@6, thc Orgsiatior ofAra! P.Eolcun Exportirg

Courd6 d{idcd to cui b&k oil suppliG by 5 pd @nt util ![ lsn.li fo6had wilhdliM from Anb ldG. Althousl th! obje.l w6 not &hi.vcd, rhe

W€st bccame wdy ad caulious of dcaliog wifi Saldi Ambia, owing to rhe

suppon djoyd in lhe M6lin wodd and irs Mdirds to u. it oil fof

politic.l putpq6. Oil wEalth b3, d th. odu hu4 also bd u$d for rlE

hod.mir.oo! oflbe @utry. Anlr Kjng Faislt deth itr 1975, hk nisio!@ntilucd by his srcasq K[alid (1975"81), rahd (1981-2003) sd now

Kins Abduuah.

ISTJMIC REPT'EIJC OF PAXISTAN

Tte inpoct of Irlrm on thc subcontinclr {.e d*p ed &t @bin& Istao

inEodued not only 6 a n w Eligion bul Al$ s ! rw cMliatid, a Ilry Myot life dd a tr* *t of valu.!. lslmic nldirioB of srt drd tileBtw, cultrcand rc6!€n nt, social ard w.lfar€ institutiotu w€rc .stablished by MulinnleB thrcughout rh. sub{oniincnl, A new taoguage, Uldq ddived minlyfrcn Anbic, Tukish ed PeBid vocabulr.y ed ats $erh€d words md

idiom, EDk€n dd wrin4 in othr lagu!9.s. Now, Urdu is the Natimllsguge of Patistan. Apan tm rcligioq Qlm dd Anlic, Urdu al$odl€d the Mulim .otmuiry of thc au!.ontin€nt duiDS rhe pdiod of itseddarcy to p@m itl 3cpaBr. id.nriry in thc aub-@ntiMr

Wilh iB @iat @rdcd hisrory dating bact lo rbc rhint mill@iM BC

6ltempom6u *ith Mcsopot nia, Pali$rn cndgcd atr indep.ndent Islrmic

Srat o! 14 Augwt 1947.

The 6ist Malim to st f@t o! l!. soil of 0r. Sourh Add lubcootinor *@tad.s fiom &€ coNtlad of AnbiN and lllc Arabia! Gu.lf.ffer the ns of Ihe

I@ faith b the cdly pv€nth @ntury ADi and thc fst pdb,ml Mulimfoothold in the subcontindl w6 a.hi.v.d vith MuhaanEd Bin Qasim\conquest of sind in 7ll AD, An at)iononous Mtrslin slar€ linked with deUmtXa4 ed lat€r, the Abb.glid Caliphat , wa Blablished with.iuisdicrion

ext€ding ov4 south€n ed c.nr.lpatu ofprcadt Pakisbn, Quitc ! Gw nev

citis were establisted ,!d Anbic Ms inhodeed as rh. ofrcial luguge.

At the time of Mabmud of Ghr@'s inv6ion, Mulin tu|. sril di5ted rhough

in a w@ls€d forD, in Mdtd ed som oiLr GgiN, Th. Ch@ts (97G

ll48) dd rh.n sre.$s, thc cbut (ll,A-t206), wa cdr?l Asie bt

oriSin dd oudook md ihey rulld thei. idilodes, wbich @vered msdy rh.rcgios of pr6mt Patisra4 Aom c.pirats outsi& th. sub-conrindr It w i!the 6ly tbirtedlh eltury th.1 0E fourdatioB ofMslin ote h 1206 ro 1525

AD, fiv. ditremt dyDstid bcld swcy. Tt n foUowcd rLe psiod of Muenal

aMdacy (152G1707), dd thcn tub contilu.d, rhougl nooinajl, tirl 185?.

Fom thc tin. of ihc Ch4avb, PcBie cpL@d Am6ic s tbe ofrci.llanguge. The a@ooi., poliric.l aod rctigios ilnitui@ devetolEd by lh.Muslins borc fi€ir uique ihprc$ion. Th. lse of rhe stare }E b.*d on

Srana, ud in pnnc'ple Lhe rulcs *crcbound loenfoe. ir

Thc qu€stio. of Mulin idenlity, howcvd asiuncd &rbu prcponios duingllc deliD. of Mulin powd in Slb,C'ontitrdr ahc fisr p6on ro Eliz. its

acuro* wd th. $hold-tbtulogie, Shah watilrkh (1703{2)_ H€ laid rbc

foudaliG of Gl,mic t@isscc i! $c subconrimr sd b@nc a slre ofiGpiBti@ fo alnosr all ov6 th. sub€.qu.nr sial dd rcligiG GfomDov.mdti ltis imcdiatc sw@sou, ispircd by his t@chiogs, tri€d ro

eslablish a nodel Islsic strte i! thc nonh-wst of snt>@db@r dd rh.y,

und{ l!€ leaddship of Sat?id A}Dad (1786,1831), p.$.veFd in llis

M.ewhile, sbrling with thc E.sr India Compmy, the Bnrisb @trgcd a itE

donitrbl force in sutlotrti!.nt. Then powr ws gEdutty dnrd€d ovd a

p.nod of raly one hbdFd y6. Th.y dpbced rh. Sidid by whrt th.ylmsl G lhe ArgleMu!.nradan hv, Engltuh b@me rLc olficial lrngugc.TLce ad orhd dcvel@mdrs had gdt si.l, dotmj. dd politi@l ibpact

*pqially on fie MuliB of sub{onrir6r, Thc strugglc of tEdon, t857,

rem.d rtre Indid Murily by tb€ Brilish. Tne Wtr of Ind.p.ndac. hy $.p.opl. ol India bdomes a dcsphl. .rcmpt to r€veM rh€ adv4e cobe o{

The lailw of the lEs? Wr of lrdepadlnce has distrcu cotuequ€ncq

*pecially for th€ MusliB, es fie British cov€mmenr plac€d alt th€

Eporsibility for dlis evqt on thch.

Delenined 1o siop s&h a @Mencc in tuturc, the Bn sh follow.d

d€lib.r.iely a r@ressive policy lgainsi rh€ Muslins, ?topqli6 dd slat s oflhoe eH rmotely as@iatcd wilh tnc fr..dom fightcs wer coDf$ated hdcoEciou ellorts w.& md. io clo& aU th. sv€!u4 ofhorcst livins for lhd.The Mulim rcspotue to rhb situation Eho .ggEqiod 1b.i. plight. Iteirreliaious lod6, who ha.l ben quir. &riv., wirhdrew fom rhe @isr€u oftbe colmmiry lif. md d.vor.d rhtudvd .xclsivcly to iEpdling rctigioDs

ichuctiotr. Although rhc Mtdris, aFcially rh6. of Dcobdd, Famgi Malildd Rai aaifly, arablbh.d by thc /.r4 did hclp tbc Mulibs ro prw$en id.dtity, how.v.., rhc rtinina Fovidld i! rhs iBlitltio6 h(Iy€quipp.d tbm fo. the n* chAll6g6,

Tle Mulios k pl thcNlvd d@f ftoD w6r@ crt@riotr s w.ll deovcfucnt rcNice, But tbcir complirioq lbc Hinda, did tut do so odacepied the new ru16 wirhour Bdarion. Thcy a.Aired w€srm cdu@1ior!

imbib€d th€ n€w cult@ ed captuEd p6itioB hi$eno 6ll€d in by rbe

Mulim. The ro who ralizes rh. ihpdding p.ril M Sir Sy€d Ahmd(hu (1817'1898),. wirr.ss to rhc FaSic cvdll of l8l?. Ec ererted his

uhost lo hmoni& Brilish-Muslim €larioDs, His Nscssmml wrs rhar tteMulim' safety lay in the acquisition ofwcstco edrcltion md hDwl€dge. He

took !.veral positive Bteps to achievc this obj*tive. Ee fouded a colleg. at

Aligsh to imprl €ducslior on w.si.m lin€s. Of cqud importance wd tbe

AnglGMdlrlr@dan edlcationrl Conf@nce. which he sponsEd in 1886, ro

previd€ m int llecnal forun lo rhe Muslins for rh. dksnirrion ofvi€s in

support ofw6ied education and soci.l €fod. Sidile werc rhe obje.tivB of

lhe Mulattmdd Lit Ery Socicty. foud.d by Navab Abdut ratif O82E-93),bDl thcir &tivitics wd. confin d to Bcng.l Sn Sy.d Ahmad Kitut efrorts

hdfolmd into a novd.!t, knom d rhc AliSarh Movem6r, ad it left irs

imp.int on the Mulim of ev€ry part of Ue $lbcolrinoi. Under iE inspi€rion,

arrtzam (smi.ties) werc fouded rhroudout ihe sub€mtinmt ehich

established eduqtional irulinitions for inp.nirg rcligio$ as wcll s w€stem

education to rhe Muslins

Sir Syed Alned K.hm w3 av6c to thc idea ofpanicipation by rh. Mslins ir&y o.gdird political activity which. he feadd, midr rcvive BritisL hostility

towdds thn. He abo dislilcd Hindu-Muslim colt.bmrion in dy ioinrvdtuE.ltis rcsdrtios in rbi. Eglrd sr.mcd b6sic. y Aon 0!e Udu-gitrdiconhov€Ey of tllc laa 1860s wh.n rh. qindu .nrhuisrs vehen€ lyclurpiodcd th. @w of Eildi ro Eplacc Udu, Hc. tbftfon, opposrt the

Indim Nltional ColgB. wh6 il ws foud.d in 1885, ed rdvied bis

@msiiy ro ab$ain fiom it5 &tivirics. His co dpozry ed a gMt shot rof bla4 Sld Amq Ali ( 184!1928), shd.d htu vi.ws abolt th. CorgB,blt he w not opposed ro MBliru orgdizing thNtv$ potiri@lty. Itr 6cl,he orgmizd thc fml siglilica political body of l[. Mutim, tLe C@tnlNatioml MUI!@ad.n tus@iarion. Allhoud its ndbdhip ws timiled, nbds abovc fifty b@ch6 in dir.@r p s of $. 3ub.onrin nt od itaccomplished src solid wott fo! the educirional &d politiol advanendt ofrhe MNliG. However, iti activitics w6n€d iow.ld3 lh€ od of the nincIeorh

At in€ daM of tho tweotieU @ntury, ! nr6b.r of facto.s @din@d lI€M6iim about thc ned of e efcctivc politiol org&iation. Thdforc, inOctobd 1906, a dcp .tion @mprising thi.ty-fivc Mustin lades ner invicdoy ai Si6la md d.@ded s.p@i. .letont€s. Tn@ months lat r, ibe

AI-Indja M6lim L€guc wq foEdcd !t D[.r! minly wirh t[. obj*tirc of

safcguarding ttc loliiical lighb and i erBis of th. MuetiG, Thc B.iri$concedcd ro s.pmt€ €lecroates io rh. Gov.ilrlMi of t dia Act of 1909 yhich

confmed kaguet Fsition 4 d All-Indi. Parry.

Alt€mpt rt Hirdu-Murum Unity

The vieibl. tMd of tbc two @jor co@iri.3 pogessilg in opp$iie

dn .ri@ eu.d d€cp @n@m ro lad4 of All-lndit sratr. tt y strussLd

to bring l[. ColgBs dd the MBlin L@g!€ on on platfom, Quid+AzmMohmd Ali Jiual 08?G1948) ws th. lading iig@ uons theo AIiallc dulnht of rhc padidotr of 868.1@d rhe Empce powa' 4gBivcd6ig6 ag.in$ th. Ono'@ Empir. ud Nonl AAic4 the Mtl3ti@ w.E@cptive io thc i.lea ofcoll.boFtior with 0r Hindus.

Thc Congrcss-Mulin liaguc npproch.mdt wlr &hided at rhc Lekmws.ssions of ih. two partica dd a joint sh€@ of rcforu w6 adopGd, In th.

Luchw Pac! e rh. $h.@ w6 @monly rcfdld l[c CdgB acc€lt d

tbc principlc of spdtc eldlontes, ud th. Mul'ms ir Etu for 'wcightag.'

to th. MuliB of th€ Muslin ninority provi@s .gftd 1o s@n Lr then sfin

@jorilis in lhc Pujab ed B€ngal. Thc Post-Lstmw P&t pdiod wit!6scd

Hindu'Mslin miry ed dc two pani.s me to bold then mud $$ios in

ilE sme ciry and passed rcsolurions ofsinile €onlc.i.

Txe r'ind-Muslih uity rcacbed its clitnax duing i!€ Khilrfat and ile Non-

coopedtion Movcedts. Thc MNlid of slbcdrircd u&r 0r. lcaddslip ofrhc Ati Borh.6, Mad6a Mubmd Ali dd MoLna SLaltlt Ali. la!tuLcd

the hisloric K.hilafal Mov.nenl aft.r the FiBt Wo.ld wdr lo pmbcr fie

Onot@ EmpiE A06 ds@bqnmt Mohaldat Krlifuh.nd Cddti (1859-

1948) ltukcd thc is@ of Mroj (d slf-govclmdl) with rh. Khilaat is. to

asociat lhe Hindls wiih the Movemcrr. The eNing Mov€n€nt wa tLe tud

cout y'pidc popula movmat. Although th. mov€tMt fail.d in its

obj4rives, it had a fai-.€acbing impaci on the MBlirE of subcodinelt. Afld a

lotrg tinc ih€y forged a aitld &tion on a pwly kl&ic issuc which

nomdtadly forg.d solideiry mong rhm. Ir abo ptlduccd s ct.$ of Muliml@d6 ap€licMd in orsoizing ard @bitizins rh. p.opte. 'nis .xpqi€Gv6! of imcnsc v.le to the Mulic dui.g the Parisa! Mdcmot

ft€ €ollapsc of the (nilafat MoveDcrr wrs followed by . p€riod of bitter

tlindu-MNlih dtagoriM. The Hindus orgdiz€d rwo hiShly ori-Mslimnovemcnts, thc Shudhi and tb. Sdg.lbo The fom€r mrcMr sd6i8n d ro @DE.t MNlims to Hindutun &d the h!6 ws t|r@1 ro @reelid{ity dong the EildB in rie cvcnr of c@al cd{ticr. I! Etaliado4

the Mulios spoM'td the Tabligh dd T@in oryeizlios to couter lhe

inpact of thc Shudl dd tbe Su$thu. I! the 1920s the frcqlcnci6 ofcombll riot! weE up@edented. &venl Hildu-Mulin uity.onf€@6w* h€ld to rcDovc lle 6Ug of co.rtlic! but it s.m€d mding ouldmitigat tbc irtc.sily of comddisn

MBllDr d.n.nd.d 3 egu&di

In Ue lidl ofthis situatioa the Muslim Eviscd then constitutional denrr!&.

Tley noe Mntcd pewation of thcir nuBic.l tujoriri.s in rh. Pujab &dBengal, scpaEtion of Sindh fiDo Bombay, costitution for Baluchisran 4 a

sqantc previrc. and irtod!.tion of@nsdnnio.,l Efom in th. Ndl[-W6tFMtid rovince. It % Frtly (o pEss 66c .lctud! O4t onc s4tion of the

Al-lndi. MBlim Lague coopmr.d yilh thc Statulory Comhsion s@r by

the Britkh gov.m€ Dd€r the chaimluhip of sn John Simon in 1927. Th€

othd section oi dre L@gu., which boy.otrcd the Sinon Comissid. for irs

a,ll-whit€ ch&clcr, @p@led sith thc Ncbd ComitGc .ppoint d by the

AI-Panje conf@ to dnn a @Gdtutio! fd lldia TXc N.hd RcDort hrd

e qtm.ly eli"Mulim bia ard thc CongB leaddslipt nfiNd !o modit disillsion€d .v.n the noddt Muslim!,

Sevc6l ladcB md lhiileis havi4 iNight into thc Hindu-Muslin conflicts

proposed Sbtc lbr Indian Mslim. How.ve., the Nl l!6id expGition of rhe

iue! f@lings of l[e Muslin comuiry ws sivc! by Allrtr$ Mu!@dIqbd (187?- 1938) in his pr6id6iial add€ss to lhe AU-l'dia Muslin lecr]e dAlltbabod in 1930, he sueScsted $d for the healthy developmert of Idm in

subcdtiftnr, ir @ N@tirl to b|c . sep@tc Mulio statc .r l*r in rn

Mulin bajorjty Egions of the Indi.. kl€r 04 in his conBpondene wilh

Quaid-i-Azam Mohmd Ali Jimah, hc included thc Mulin m.j6ity aj4i! tb. NonI'Edt also in his prepd.d Mulim st i.. Ttre jts aftd his

Aualabad addre$, a group of Mu8lid studedts at Cmbridgc, hclded by

Ch.udhry Rahml Ari issu.d a pmphlel, Noe or Ncvef', in which, drawing

Ltle6 from th€ nulc of tbe Malin ejority cgios, 0Ey gt e th.

non€nclaturc of PalGt n to tn. prcpd.d sr6te. vcry fw, cvcn mong tnc

Muslia, wclcon d uris id.a ar that tim.. It w6 to tlke a dccrde for thc

Muln6 to .obEe thc d.hlrd fd a s.pmte Malim st te.

Qlrld+Aam Mohrnnrd AI Jinn.h

Manwhilc, d@ Roud Trbl. CitrfcErce w@ conv@€d in tnndon dui!8

193G32, 10 Fslve the hdie cctitulioral preblem. T[e ltindu dd Malinlcadcs who w.rc invil€d 10 th*e conf€rcnces could not draw up m agrced

fomuh md thc Bdlsh Covtur h.d to mol!@ a 'Conmual Awrd'

which w itr@Doqted io tn. Govmm! orlndi. Acl of 1935. Beforc th.

cledom undd this Act, thc All-lndia Muslin L€a8rre, which had mir.d.lolimt for $me 1inc, wf 6r$niad by QlAjd+Azd Moh@d Ali

Jir!,\ wto 6ad reth.d 10 India in l93s lnd a slf-itipo*d cxil. or@lyIive yed in England. The Muslin Le.gu. @uld not win a mjority ofMrslin

s.!ts, sid it bid not yer b€d .ffsdvely m.gdizcd. Howevd, it hrd lh.s.tisfaction (har tn. pdfo!'@c€ of th. hdim National congrd tu thc

Muslim constituemieswas ursatisfactory.

Aff€r the electioN, rh€ anitudc of 0r€ CongE$s l€adership was @gsr eddomi!€.ri!s. Thc clrssic cxaDDle w4 irs Etuel to fom E c@lirio!

gov€mert wilh th. Muslih Lasue in the Unit€d Prcvift.s. Itutrad it ast.d

thc Leae!€ lc.dd to dtuolve then parliuot ry paity in thc Prcvinci.t

Asbly ud join th. Conge Anorhd inFrt !r CotrsN @ve afrd thc

193? el.clions w$ irs Mslim @!s to DeEnadc the

Mulim to join rhe conSr€s ed no1 tnc Mulim Logue. On. of i1s la&E,Jawahdal N.htq ever d.cled lEt thd w.E only two force in bdia, rh.

Bdtbh ed ihc Conses. AII ilis did not go schlll€ncEd. Qlaid'eAEmMohmgd AU Jinnal coul.rcd that prop.gEtrda ed sid rlrr thm b rls a

lhird toE in subotrtircnr mu$tuting the Mmlitu. The All-lidia Muslin

Learle unde. his giiied ladsship godullly sd sldlltully started io

cotr$lidatc rh. Muli@ on oD. platfom. It did mr nis to dploit d6 mllCongre$ mjstakcs in ils Avou-

Towrd! r SeF.tte Mu rEon.l.ndTh. 1930s saw rcalianotr anong the Mu6liG of then spaEtc identity ddth.ir eiety to preswe il within sepdte teaional boMdari4, A, inponanl

elcmcnt brouSht lhis simding M6lim narion lbB in thc opcn @ thc

charcier of ihc Congre$ rulc in Oe Muslin mirority pmvinccs duing 193?-

19, Tle Congr6s polici$ in th€se previMs hun M6lin sBc€ptibiliti.s.

Tt6c w@ elculat€d .im to obln.dL the MGli6 a a $prnt @ligiN

dd oliunl onit. The Muslim .ov stopped to thi* in Iefts of se.king

efcguar& dd bcgd to coBidd *do$ly the d.tud for r sp@te Malim

sr ..Driry l9l7-19,svdlMElimlcaddddthi!t@, itrs?irEdbyAlladr

Iqbah id€as, pGdted elabo€le schenes of pdiitiorone the subcontindt on

Thc All lndia MBlim liagu. sr t@k th* sh.rcs i!1o @Bd.r.lim adfinalty, oD March 23, 1940, in a rcslutiod.l its Ld@ ssioA dmdcd

sPmt€ honcland for lle Muli6 in ih. Mlslin @jqity rcgiN of rh.

subconlinent. The rcslution m comonly efded to N! 1!€ .?atjslan

Reslution". Thc Pakistan del@d h.d a erelt appal for lhc Mustims of werypds6ior. Il rcviv€d nmori6 of den past gHtrrs 6d prenised tut@glory. Thc, ln.Gfoa, c?o led to rLis defud iDD€djat.ty.

Tle Brilish Govemmenl rcco8ri4d th. g€Nincness of ib€ Paldsbn delMdindi@fy in the pbposab for rbe lr.nsfr of powd ana tbc Sdond World

Wr vhich Sir Staford Cripps broudt to Ldia in 1942. Borh rh. CoDSB edtbc AI India M[slin L@gE Ej4tcd rh@ !rcpcals fo. ditrdr lM_ Tb.principle of $c.ssion of Mslim Indir ,s a scpmt dominion wd, howevs,

conced€d in thcsc preposals. Aft€i this fbilw, a pronircf,t Congrcs lad€r, C.

Rrj Cop.l Achaia, suggest€d a fomula fo. a s.pasie MBlin stat€ in ln.working €ominc. ofth6Indid Nariorul Congresq vhich ws Fj@lcd at rh€

time but lal6 on, in | 944, fom.d rbc bais oflhc Gedhi-JinEl ralle

The laiis€n demand @ populdized duing Oe Second World War. Ev6ry

s4tiotr of thc Mslid olmuity wo6o, studcntr, lLda and buinesnen

wa ory&t.d u.Lr the benq of tt. Au-hdia Mulim laguc. Btuche ofthe prty wcE opdcd in tLe It@le com6 of dE sub.onunen! UtcotrE inthe fom of pahphlels, bokr, tug&incs od news?ap.6 ws pod@€d to

explain lhe t.kist n de@d and disribllcd *idely. Tbe srpport gain€d by rhe

All-ldia Muslim Lcaee dd its dcrud for ?akistu wes &s1cd ana ihe

fiilw of th. Shna Cdf.mcq conv.r€d by rhe Vi@y, Lrrd Wavell, io

1945. ElctioG wft callcd ro d€hinc lhc r.+6tirc $.6gth of l!. polilical

The Mulin LeaSue electio! cmpaign e6 baed d the P.rbbn dc@{t lteMulin comudity qpod.d to this call io m upe.d.dt d w.y. Nm.os

Mulin prnis whjch fm€d a uir.d pdlialmrary boad at ihe b.h.st of i!.Congress to opposc ihc Mlslin klgDc swepl aI rhc ilhirty sars in ihe.cnrnlIegislaturc dd ir thc provincial elections .le its victory ws ourstzrding. Anerthe clcclioc, or April &9, 1945, r[. AI-IDdia Mstin Iag@ c.llcd a

cmvobon ofthe nw! clet€d Laguc ncnb@ in thc @ntral sd prcvincial

leSblatues at Delhi. This convcriion, which colsritured vi,tullly a

.eprcscnbtiv€ dsembly of thc Mulim of subconrirdr, on a no!@ by rbe

Chicf Minisler of Bmgrl, H|ein Sha!..d SDldwardy, riiaarcd thc patistrn

d€rudi! clturrhs.

In dly 19.16, l[. British Covem.lr sr a Cabilct Mision b rhc

subcontin Dt 10 r*olvc th. costindonat dadlock. The Mi$ion onducrcd

ncgoiiations vith vsnou lFlitical p.nics bur friled ro evolve & agEdfomuh, Fi@Un thc Cabinel Mision mouced its oM Plan whicn, morgotlEr provnionr gviegd rhe fed.ral gmulings, two of thd ompdring

tic Mwlim mjority plovinc6, linkcd ri thc @nhe in a l@F f€deorion Mth

lbice subj€ch. The Muslim L@sxe aEcptcd the ?ld, s a srntegic move,

erpeting b acbieve its objetive in-r-nor-too-distant funr. The All,lndi.Con86 lbo aA@d ro rlE Ple b!t, sn dlizing its inlli€don$ $cCongrcs ladeu bcgan 1o ilteQEi ir in ! My not visualiad by rie lurhoE ofthe PIan. This provided the All-lndia Muslin kagne an excuse ro wi$draw i1s

am.ptarce of the Pla dd the psrty obed.d Augut 16 N a Dir€ct Aciiotr

Day' to show MNlin sotidrrity supporr ofrbe ?akisrb d.m{L

In Octob* 1946, & lnt rin Gov.nmenr was f@ed. Th. Mulim lag@ soric Eprcsliti6 udd lbe ladcGhip of iis Cddl S@tary, Mr. Liaqlar

Ali Kh.n, wnh the .im lo arght for lh€ pany objetiv. ffoh within thc Inidim

And a shon timc. tbe sitution isid. od outside the lDrdio cov.mfltconvinc€d rh€ ConSiecs leaddhip to accepr P3*isl!n as thc onty solutiotr ofthe comunal problen. The British Covem.n! aftd ! Lst att npt to ev€lhc C.bi!.i Mision Pld in Dgmbd 1946, .lso @v.d rowds a pld aor ttloditionoflndi!. Tb.Id Bnrish Viccoy, t rd l^is Mourbdn |! cdc wirh

a cl@ Imdltc ro d6ft. pld fo. thc i..sfd of !ow.L An r holding talks

Mth politiql lod6 dd panies, h€ pr.p&€d ! ?arrition Plan for ihc iraffId ofpow€r which, and appmval by thc British Covelm.n! wN mouced on

Boi! thc congr$ dd tte Mulin t aglc &c€pted tne pb!. Two largdt

MNlin mjority prcvincd, Bos.l .nd ?ujab, wde .le.larcd as Fpqnre

Staie. Th€ ascnblid ol WBt Punjab, Eat Bengal, dd Sid ed in

Bahchi$an. thc Quctia Mmicipality, and nE Shahi Jirga vorcd fd Pskbtar

Ref.mdm wa hcld in the Nonl-Wst l.ontid Prcvire 6d thc Dstdcr ofSylhet in Asm cancd d ovwhdming voto for Pakistan. Otr Augur 14,

1947, nd Mustin Statc of Pakistrn €nergcd on ihe world mprt.

Pakislan cohlrising Wst ?akisran s,irh the provima, of Punjab, Sbdt,

Bal@bistar, ,rd thc NorilBt Froirid Prcvin@ [NWFP), lnd Easr ]atista!wilh drc provin@ of B6Aa1, bedc & irdclodcnt Mclin Sralc. E st

Paki$rn latcr, in Drcmbq 1971, bdm€ ile indepcndent @tiotr of

P.lbbE . S.p.r.te State

Pakislan, alon8 wirh porrs of w6tm India, @lained thc db€ologicjlremis of d !r!h civilizrim dlrin8 bek 4,500 y6- Al.r.ndd rh. G@r

included lhc Indus V.lley in his .opn in 326 B.C,, ed hi. s@essoB

folnded the Indo-Gr€.k king.lon of Bacri. based in what is ro&y AfShaisran

' ^M6e.t..cowtuql^etu

.nd qi.ndinS to PdlEwd. Folloeine thc ris of rhc Catrtl A$id (utdEmpiE i! lNtcr cdtuies, thc Buddhjsr cuhe of Afghdisnn aid pakhr.n,

centeEd on th. citr of Taxila jul osr of Pdhawtr, €xped.rc.d a culturat

rcuisscc bom a ihc CtudhlE pcdo4

Tle Mahmja of (ahmir was reluctani ro nak€ a .lccisror

ciu6 Pahstan or hdia, Hoe.va, mcd ircmios inlo the si.r. by tribenMfton the NWFP lcd hin to scek nilituy dsislanc. fron India. Thc Mah&ijs

sign€d acc*sion p5p6 in October 1947 md auowcd ldim t oops to €nr€r thc

stalc. Thc Cov.mmt of Pati$an, howwd, Ffa€d to @gnize drec6sid dd canlaigncd lo d6e lhc d€cision. Thc statu of K4brir hdreroin€d in djspule si4ce fier

Tie Burctu.ntic M.rt.6rlThe Britbh us.d two s@aale syst m ro soven llen Irdie @pne: thc

B.itsh Indid Amy dd thc Indid Civil S.nie (ICS). The ICS not only a.r.d

a.s the adhinistative infdtn rr bctwed ruld and the rul€d but also

poss*sed coNid@ble policynDkins pow€r llis wst bw.umdc m.hinc.y

wd bqiled by a hddftl of British civil s€l@ts, wbo gowh.d thc @lonial

mpiE with an ion grip. An€r independenc€ raldstsn and India inldited tbat

blreaucFtic st€t@, In India it wa! ldoM as th. Indifl Adminisr6tiv.

S.Nice 0AS), and in lakbLn the civil Sdie of Prtista! (CSP).

Admlnlstrdlve Slructurc of Prlilstrn

Duiry the Friod 195158, lhe inh.rited @lonid .dninistEdve shetr ssuch thal {hocvd hed.d lhc bu€aucFcy @dd m.lc the position of th.political ldder m@ly litular atrd inpotent. The nost imporldt pan of th.bursucnric ruchindy s tne Cabind SedariAr, rhrcugh wbich all cdtral

tov.r@ot dirctivs !a.t to be chmclcd. ahe ordcs wde comDi€at€d to

- hd x*4, F'M uh' &n co4td c,rtu vtu d tui. pd"ea 6

the s*retari6 tu @h ninist y dd *c rhd op@riotulis.d. Ar r!. prwieidlevel, conttol re amised tbr@e! sovcdoB or CS? officd who w.r. dir.cr

appoinlc* of the cent !l 8ov€meni ed boud by the dnectiv€s of fte

Cabinet SaEtariai. Th.y €x€nisd noE powtr in thc p@vires thd the

elecred cptlsaatiEs of the p€ople. ThLs, ih. wela€ss of politicrl l6d.Bbip

and politi.al p{tis I.d 10 th. dclgcn@ ol the burciu.Fcy d th. polilicgl

Duina nilitary ru|. of Aldb KIm (1958't968I lLc powd of thc buou@cy

ws cunailcd ad IMy scdio. bwaucots wft disniss.d Aom their posts. Bur

the milit ry. ndded the bl@rcr&y in oder b goven the couty, dd the

bearcacy s@n adjct d ilselfro rhc dl. of the hdd-@id@ of rt niliury.

All admiDisrrative Efom w@ thcEfoF shelved. Und.r Zulfiqr Ali Bhutio,

rceimc, howev€r, thft ws ndical change of r€fom: th€ adninhmfvc

nonopoly of tbe CS? w6 brokd dd, all s@ica md qdre w€e intcgnted

i o onc uificd scryic., wilt blEucdts clasfi.d @rding lo thc gatle

syst n. Thc CSPS w.n lcry di$ltisfi.d viih fall in thcir status, and lhcy

d€lib.ntcly sabotaged Bhlttot $cialist progrlmes, The taull, how.v.r, wdBhutto's b.oe he ha a fcud.l bactglosd *6 popcFdru& ih€Florc wbal

he has pmnted to rh. p@plc, Rod. KrpB and Maht (Foo4 Clot!.s ddShelrc4 failed to BtrEngth€l hjs party's linls eiih llc nss, The bmducn y,

6e 6liray cotp d ltot of ltly 197?, which rcmv.d Bhutlo, Ms w.lcomed.

Allhough il did not djoy the pP.oind@ il posc$cd duilg milit ry oledead., it slill djoys policy-nating pow6. The milit ry cgim lb,n sahlto legiiimlir ils tak ovd urdd the guhd of Islmhltion. thc bl@uc6t! have

conc.ntrded rh€n policy-nBkine in rhie .H- But lhiny-iive y.a d€rindcpcndd.e, the bdic .lid$ snutu'. of odt y\ political systd h4 not

altcnd fbn the610 al D.tt n

CIHPTER-2

Saudi Arabia-lndian EconomicRelationsre:Implications for Saudi Arabia-Pakistan Relationship

Itrdlrtr lovglm€nt Policy

Pct 1991, thc IndiN! @nony ha ben Lrg.ly d.rcgDlat d wir[ r[e rebovrlof hosl Iieuina pFccdl$. T!. Oovc@rs tibmtiatio! ed ao@micrfom progimc aiE ai q,id ed substalti.l economic grod, edintegntion widr th. global a@ony in a ldoni4d mmd, Th. ind$Fialpolicy refom havc r€duc€d rbc ilduskial ticGing rcquinrcnts, rcnovcd

Btrictic on invdtndr dd expmion dd h.ilirared 6y a..8 ro forcigti.chnologJ, ed rDL wbich nd. rhc bui!6s avibmcnl ilvcstor fteddly,

and is d imlErunt ati.lction fq fresh invcariMr

The lldstrial ?olicy Rcsolurion of 1955 xd rh. SLlmcnt on Induhirl policy

of l99l prcvidcs ilE bsi€ firme*o* for thc Cov€m€nt

Ttte Systen of obiaining gov.mrcnr applovals bs b.€n pogEsiv.tylibcBlial ord fi. 1990s comdcing nDm rh. w.tcBh.d chrgB in

ttdutrial lolicy .Nun ed on 246.tuly l99l which slbrbnrially abotished

indNEial lic€nsing, adouced nasNs facilitltig foEign inv.stadt udtcchnolos/ lrasfcs dd opmed most d.as edlier Geded for public s4toi

Thc requim@t of obt ining m induiial lic@e for @uf..ruriDs acrjviry is

. Iidusti.s resrycd for pnblic sector (3 in numbd)

tuhd@P,ffi6 M. k nootMlntu,4drw ^446lidta

tu. rd) tu N1N@.db'tr.kfu.cow,.[t dbdM

2

3.

2.

l.

5.

Lbl ol hd!.trta r6e.ved for tt. p[blic sctorArb! .nd rMuition dd allicd illm of def6c. cquipMi defdeancan aid tra$hips (!roc6s ha becn initi.ted 10 der€sene &is .nt y)

. 6 industriB of stat cic sial d @viremdtal @MmNoFsutsll

56l. sFto. by Non-SmU Scal. Industy C SSI') uils or uts in

which for€ign eqlity is mor ihan 24 p€Ee .

Distilhriotr dd bwing of alcoholi. drink.

Cigm &d ci8.Elt6 of toba@ Md !@uhc[rled rob@o subrrirute.

ElsFonic Acrospae and defencc .quip@! a.ll tFs.Indutdal cxplosives ircluding d.to@ting tu$, safcty fts6, gupowdcr, E@.llnlose dd mtchcs.

AU ot!& indusrria 16 Gx€alt liom lieBiry $bjet ro cqtai! localrioMl

arricti@ in m.iropolird .@. ln th. .vat, learioral ctrictic @ trot

dneEd ro rbc sit u rcquu€d ro obrlin & irdrFirl Ucoc..

For€igtr ltryestmeit Pollcy

Indb\ donooic policis @ deigncd io att&t signjfi@t c.pital intlos inro

Iadia d a suslaincd b6is dd to mouagc rccbnology collrborad@ bctw@

Indie dd foEign fim. Policy idliarivcs t*d oEr rhc l$r f.w yors! have

rcsuled in significant i.ilos of foFigtr irvsh.nt in div.e @s of the

econony. Ldia welcomes diMi forcign invcshmt in virhDlly dery sector,

ereF tos. of statcgic @ncm such d dcloce (opncd up r.mily to .limited €xtcnr) Eilway tran&ort &d nonic .&rF/ and whd l!. diniry ednotined sdoal policy d6 not p.mir loEign Di@t Iw6h@t (FDD

beyond a c.rtain c.iling,

Li* of itrdu3trlB for phich Indultlrl Ltc.trsltrg is comptlsory

6. Dnrss and Ph@utic.ls (accordins to the modifi.d Dog Policy

isucd in 1994 dd $bs€qumdy dn@d.d ir 1999),

Stlenr feltura of tbe €@nomlc pollcle! rd incentlv8 lor forclgE

. No Covhent ap!rcEl Eqliftd for foEistr di€ct nvBhdt in

vinuauy all thc sat 'rs/etiviti6, cx@p! . @ll nc9tivc li5t notifed by

. Gov€ment has notifi€d Sector Spailic Cnidelinq for For.ig Dircct

lwslncnf' (tablcA) eheein inv6!rcn1up to sp6ili.d scctonl ap!is @vdd undd rhe olo@tic Dut., witl a fd e&.ptioB.

. Tte Forcign Invdlmmt Prcmotion Bodd (!IPB) coffidcB Foposds

for forcign panicipatio! that do rcl qulity fo. aliomtic appmval.

. D.cisions o! all lorciejl invcstncnt propos.ls e uually trtm aitbin

30 dars of.pplicalid.. Fre Epariation of €pital inclt!..r ed preft rhc@n is F@ittc4

povitlcd thc origin l iN.srrnbr M nade in convcnible fNig!

. Usc of forcign bred imc r.dc mk for salc of goods in rddia h

. Indie @pilll rEtcts m oFn to foEiSr itrstitutiodl invato6.

. Indian compNdcs @ Fmitled to Eise tunds from intc@tional capital

. India ha cnicred into ag@menb for avoiddc. ofdoubl€ laiatiotr with

over 88 coultti6.

. Iodia has sigcd 3? bilrr@l inv6flar pmbction agrEcn trts.

. Speial inveftn md rax in@niiv.s @ giv6 for.xports md cenaln

sdo6 such as powd, el.ctronics, Boliwdc ud f@d prc@$ine.

'SinSle whdow' clM.e facililica dd 'invesroB @on swi6' hrvc

ben previdcd in ldou st ier io sinp[ry l[c ap!rclrt ptlE* tur es

Foreigo Dir.cr InveltD€trt

InpNMeof th.Govcl1@'scomir!@tfd6lyihpt.m.ntarionof lh€

sond phe of eoronic Efolm &d witb ! vi.w ro tu {q ulshmtdina

Indi6 ildutry from the rigoB of appb*ls ad controls, O. covtudr hN

.llow.d FDI or an auioMiic bsi6, erccpt in rcsp61 of ! stull negative lbt.

All induEievacrivirics wodd quIry for FDI @ d alromric b.sis qcept l[.

. AU investnoi proposb in @opeies wh€G lcrivitia rcquiE uindusrrial Lieru., which inctud€s:

& .ctvity rcquiring d Indurrial Lic.e undd rhe hdBtti6(Dcvclop@t ed Rcgulario.) Ac! 195 l;

- fopi$ investmdt b€ing more rle 24 percelt in tbe equity

@pit l of compdi6 havins uir tuuI&rlrins nm Bw€dfor shall scale indusrriq snd

- all .ctiviriB which rcquiE b IrdBtriat Lic.M h bms ofrhele.tional policy rorili.d by covtue ud.r rhc Slateme on

Iidusrrial Policy of 1991.

. All prop$ab i.volving a forcign @tbboaror who bas m cxistinS or

ba had a prcvioN vstur€/ dc-up i! lndia in th. eh. or ied fi.ld(crcept in th. Gc of biomarion Tehnolory sdro. dd itrGebd&nnde by Int @lio.al fMcial istitutions such !s Asi& Dcwlopm.nr

BdJ., IntcMiioml li@ce Coryontiotr, Comonwealth Dqetopn itCorFntion, DcBtsche Entwicklugs (cdcelscban crc.,

To atFacl ilvstnd! sdaal sratcs offcr in4driv6 ietudirg:. Investrn@l ebsidia whicb involve rhe shre finecing E cdtdr

p.rcdtlge ofthe lix€d spiill c6t for r poj@t

. Int ei slbsidy on lod gnnled by Sr&te Fi@ciat CorDontioro.

. Pricc pr€I@ce or goo& hadc by Snall Scala Indusbi.s ingov.mcnt&dsmi-gov€lm.nlorgeizarioG'purcbbcs.

. Er.hpti@ &on &e rrFdr of@noi (€nEy rd fo. a @dain p.riod).

. All propoeb Elating ro acqubirion of cxistitrS sb,B in d Indi&conpey by f@ign ilvetol

. All preposals faling outsidc norificd scclosl policy / caps undd secroF

in which FDI is nor pmitr€d. AII propdalr whw rhe invstor chooss

10 Mle an lpplicatim io thc FIPB and nol to avail of thc automric

T.bl64S.ctor Spcitrc Grid.lird for ForcigE DiMt hr6tm.nt

S. No.

FDI upto 49% fton all som. b Fmittdunder rhe autoMtic route subjecr ro RBI

guidelin* issled Aontin to timc,

a. FDTNRVOCB inv6ld6rs allowd

follovins 19 NBFC activities sh.ll b€

ldcls indioLd below:

iii. Ponfolio MdmS€ncnt Swic.giv. Invlsln@r Advisory Sdic6v. Fiiecial Cdsdtancy

vii. A$ct MaraSmt

ix. CBrodial Sdiccs

ri. Crcdit R.fe@ Agdci6ni. Cr.dir ding fudcianii. tasiry & Fins4

xvi. Cadit drd buincas

xvii. Moncy chdging Busin€$

b- Minin@ Capitatiatio! N()m for fiDd

baed NBICS.

i) For FDI u o 5l pci!@t - US$ 0. millio!

to be btuugh lpnont

ii) Fm FDI abov. 5l pcMr dd upto 75

pdcdl us$ 5 million ro be brcudtt

c. Minimu €pitaliatioo oom for mn-6rd

Midnm copit liatio. nom of US$ 0.5

nillion is appliobL in Esp.cr of aIpdnittcd nd-nDd b!!rd NBFCa wiL

d. FoFign invsroB 6 set upto 100%

op.r.ti.8 sDbsididiq eithor$ thc cdditidto disinvcst a mininu of 25% of i6 cquity

to Indiao entities, subj.ct 10 bringilg h us$

50 miUior as at O) (iii) rbov. (without dyGEicrion d nMb.r of opcraring

slb3idiui6 withot bringiry b additiord

e. Joinr V6tlE ol'@ting NB!C\ lbat hlve

75% or l*s tha 75% foEign inv€srm€nt

wiU ako be Elowed to et up subsididid fo.

unddtaling ottd NBFC .criviti€s $bjarto th. subsidieie ale @6plying wirh thc

applidblc nilinu .apit l itrtlow i... (b) (i)

I FDI in the NBFC eclor is plt on anro@tic

mtc subjdr ro omplire wirh suid.li!6of thc Refu Brll of l!di& R.BI would

i!$c appbpdare suidetinca in this rsard.

Pemiti.g IDI ulto 26% n ilc Inswc!S€ctor undd autotutic rout€ sbj€ct to

obLidng li@@ Ad r.s@c. R€gd.to.y &Dcvelopmdl Authonty (IRDA)

Proposals for invcltnent h lublic secio. uits, as abo for Export Oriored

Units (EoU) / Expo.t Fte*ins zonc (EPZ) / Elelronic Ori.nr.d Hardwe

T@hlolo$' Plrt (EETP) / Soft*@ T?cbtulosy Pa* (STP) uits qualry fqAutomtic alpreval bute $!j€ct to adhdine to rhe atuFsid ptu 16

Prcposals for lorigr invdtmtuq which &€ trot @vered udcr rhe automtic

approld rcure, @ @Bid€rEd for apprevd. on m6its, by $. fPB. CoDlositpmposals i.c- propos.ls cking od6 in.bsEial app@v.k litc indsri.lliccnce, techDi@l collaboEnd etc. atong with approval fo. focign in@[n@!are givcn r conpditc cleMc€ by the FM,

P.oDosls involving r foEign inrlsror wh. h,s e si3ti.g or h^ had a

pdioa fi|uciautahrical vdtur./ric up i! lndia. @ EquiEd ro jurify to 1!.

GoverMqr that thc new vmte would not in rny ay j€opardi* inreqis ofthe cxistine joint v€ntu€slchnolo$/hidendl plrtnd or otbd

st&kholdas, in th. ddt thc nd rcdntrc i. in thc m.r' ali.d ficld.

Thc Govelmot hd *l up a FoEign Inv6lmot Implmotatio Autho.iry

(n!A) in the Minist y of Conn@e & l.dutry for pbvidins ! sinel€ wiodow

to forcign invcstors io fa.ilitate quick F4lation of foreign iNdlndr

Sp.cltl Eonomlc Z.n€

. A nw policy h4 hco int odEcd in th. Enn Policy .ftctivc &on AFil

l, 2000, for setting up of Spai.l Econonic Zo.cs (SEZ) h the couitT

with r vi* to pmvi.lc an i miioDaly codpctitivc 6d hale f!6envioment aor e4o.rs. Unirs dy be et !p in SEZ for tuufacneq

tading, rc{onditioning, and rcpan or for sdice aclivrty. The ui$ in Zonc

h.ve to be . nct forcign dcbdgc cm.r b fi.y sbdl tul bc subjdlcd to

any p6deicmired valu. additio! d ninim@ export p€rfmnce

rcqlireddis Sal6 in th. Dondric Teiff Arca for SBZ uutr sh.ll b.

s$bj@t lo positive forcig! qctdgc tujn8s dd m pdym@r of tull

Csron dnty dd inpon policy h forcc.

roc.nll6 ror SDdirl E@.oEic zom (SEz)

. No liceB. requiled for impon,

. D y Ae idports of opital goodr Fw @t dali c@ub$l€s" SIJG

. Duty fre. pllreDc ol @pibl 8oods, 6w m&rials, coNurnable

sF6 crc lioh rhc donesric trElcr. Mannfac dng, aading o. seRice rclivity allowed.

. Do@tic Sals m tull Cut@ duty sdj€.t to ioport policy in fm..

. No 6rcd wdt g€ nom.

. Fn[ 6adom for eubconFacting.

Sub.ontrcting of part of prodlciion pmitlcd rbrold-

No routine cxuimti@ by Cutom oferpon &d irnpon alco.

l&ility to eliE drd rcpilliat cxports p@.eds withi! 12 montDr.

R€-qpon inpon€d sood! {oud det6tiv., goods inpo.ted liom foBig!

supplieB on lM bais etc. without C-t *ivq ud.r inrituiior ro rhe

Derclopmenl Comi$iond,

Facility to €tlin 100% of forcign .xcba!g. luipls itr Expon E€m6

Forcign CMency (EEFC) Accout.

Dury fre impor/p@ren6r fron DTA ot speincd goods fd ening

up of f.clory in the Zotre pemittcd.

sEZ rading udts pmitt d to ell goods i! thc DTA i! @ord&@ wilh

$e ibport policy ir foM,

The datioB b.t*d Saudi Anbia and Iodh bad inpded tldctrilouly

SNdl-Irdo Eolooic Rclrdos

India-GCC lDdlstrial conf€d@

lrdian Ilvdtrncnt and Joid v6ncSludi inv6h.nt ia Indi!

lndis BNrs delc$lioN !o Saudr Anbia

Saudi B6in.cs delegations to lrdia

l.troducdoE: India ed Saudi Aebia lt old buinGs pdh.6: tb.n llld.r.biioN go back tcB of 4ntui4. The bilat€rd bulincss ties are be'ng

stcadily qpanded ad nrthd stdglhclcd by contiluorE interedd and

@op.ntion, tuludirgrceular.xchmg. of buincss delegations. Besidcsbeitg

a major rrad. partEr, India se thc Kingdon a u ihportarr 4otuDic

partrEr ror itrvesrnds, joint v.ntu4, tr.sfd of t6b@los/ prcj@is ed joint

pojcts io third couti6.

Tr.d.: Indi! is 4$ la4est mding paind for Saudi ADbi!: The Elrc of the

two-way tade b€twe€n lhe two coutries ir 2002-2003 wa US$ 5.10 billion.

For SlDdi Ahliq India n d. 4d largat m.rkct fo. its qports, @ulirg fd4-84 % of its totrl .xporrs. ln t @ of imports by Saudi AEbia, Ildia nnl6

lori dd k souce of mud 2.?3 % of Saudr Aqbirk iolal inpons.

Tnd. ngures for thc lat fivc yc6 @ as follows:

S.udl - Indo Tod. fi! dillion Us $)

t998.99 183t.47 714.29 2@5.76 t2_23 %

1999-2000 24t9,24 742.54 ll6l.74

200G.2001 6_rl.l2 822.94 tru4.06 10.83%

2001-.2002 465_60 8.?920 1294.80 o.16V"

2002-2003 505_90 943.00 1,148.90 13.72%

* Not : Imports sin@ 2000-2001 d@s not include inport of P.ttol€m

Itoductr dd Crud€ Oil, which w6 cpprox. US $ 3.65 billion in FY 2002-

o1(D.pu.of cm@e, aot)

M.lo lldi.o e4o.ts to S{udi ABbia e bas@l'/tr@-bMati ricq E "n'l@d. ym, f.bdcs, mad..up€, cotion )d, pnMty dd s.d-finilhed imnd st cl cn@icals, plGtic & Iinoleun prcdlcls, mchi!.ry and iBlrMmls.

Indi!'s naior import! tom S&di Anbia d. petroldn ed pehoch@ical

prcducts. Saudi AEbia is thc l.tgst supplid of cdde oil to India It ptovidcs

Indian M.rpopc.: Contributi@ by lndie tmpowa Saudi €corony ir m

ilrpori.lt dimion of the ln lGs.udi r.latioBbip: 1.3 to 1.4 nillid Indi@

ec at pc*nt workile in Saudi Amhir, ovd 90% of whom & in lhc bl@-

coUd caicgory. Th6e leoplc [!ve made im@se contributior lo Saudi

cconomt dd thcy play d iDportant ole in st .a8lhdina the Indesedi

bdirn tnvestme rdJol Ve urc!: Since mid-2000, a nub€roflndidfl@ have t.ken adv&iage of ihe rcw Saudi las ed 6bblisb€d joirt ventue

prcjers or whouy-oucd @mpoi6 in rhe Kingdon A@rding !o Sludi

Ambim Genqal Inverhe Auilonty (SAGTA), during last two yes it has

issued ncv 65 liccG6 ro Ldian 6Dpani6 fd joi @tuts or 100% om€d

otitics, wbich wcrt erpe.t€d to bn.g d total itrv.sFnert of amud US $ 152

nillion in Saudi Arabia- In additioq scvcBl Indie conpeica opdtc b saudi

Anbia in collaboFtioN wirh local Saudi compdid,

S.!di llvgtnelt l. hdir: AtF.ctcd by ffigiry bub.ss oppo.nfitia in

In lia, rhe scudi invBtrnent in India is erowiry, saudi Asbia is lhe 22d

biggsr invesror in Indir wirh inv6hBrs duirg l99l- 2002 .muting lo uS

S 170 njllion. Thcrc @ morc lhan 55 lndGsaodi joint v@lt@s or Sadi

oMed conpdiA in lrdia, i. divee ields such N lapd Imuf.ctw,chcdisls, @bpur.r sftstle, g6it pGing, indNttirl prcducls edMchinery, cem@1, detallugical i nstics, etc.

a.ound r qnarter o{ Indirrs .tude eiporrs. Duing 2002-2003, rhe India's

iDpons of Crude Oil ud lcnoleu pmducrr fron S.udi Anbia mourcd to

18.816 nillion m€t ic rone (MMT) worrh Apptuximately us $ 1.6 billion.

Indirtr Busile$ delegdior! to Sudi A..bh: During lsl couple of yed, !larg€ .Mbd of Indirtr t{.le dd indBEy delcgatoc hrv. visitcd Saudi

Aftbia to eiploc rhc opporMni* for lo.g-tm patlrGhips dd @pdtion,

incbding joint vennues.

apoBe from lhe Saudi

egularly take pan in d!d.

Thcs delesations r€@iv.d !!m &d dilr!3iaticbsin* oMuity- Indie ed $udi @npcnis

fG in each oihcls cowly.

Srudt B$h6s d.l.g.tioD to ldt.: In t@nt tines, th. nuribr of Saudi

buin*n.n dd d.lcgatios visiiilg lndi! ba gom substantill, indieting

gmwing int Gr in .me.ging bsin* oppornDirics in hdia.

lndla4cc lods(rl.l Cor|...fte: bdi! od CCC ba* dguized a teo

daylldia-Ccc l lsFial Confffic. @ 17-18 FcbnDry, 2004. Munbai. A

largc nmbd of Ministc6, snid omciab, iadBtrirlisls dd bEin* 1..d6fton Irdia dd the OCC lllt s lttmd.d thir 6dr cv.r GCC-India Confcm@.

Th. Conf.rclcc has prcvidcd a !w non€ltu ro fie strong elatioff bctw€d

thc CCC Shtes and Idis, panicul.rly in thc ficlds of @nohic ud

Ovente{: Saudi dd lldia busine$ rclations ar. Srowhg sEongd rfldting

the inh.nlt shdSo dd compld€ .ry n lw of the wo .comni6. Tb3

veioB oedios for ligh-lcvcl dialogue d buinas rotteE ed r.8dar

dchangp of delegtio bavc €sablished a soud basis for a cdsiruclive edFutlrlly bcnefci.l dationship. The oud@k for IndGsardi buitB ti6 is

SAUDT . INDO ECONOMTC-COMMERCIAL REL{TIONS

TRADE

Saudi A!.bia od India have had tade relations ov{ sevcml druia!. Thc

val@ of rh. rwGmy hadc in 2002-2003 s3 us$ s.lo billior saldi Anbia is

ihc l3d largesr mrlct for Indi.n dports dd is dcstina!@ of nore tlh 1.9

p€rcerr of India s iolal *ports, On tLc otb.r bud, Sddi Anbia is iI. solEof 5.5 p.Gnt oflndir's total inporrl. For Saudi AJabra, Indi. is th.4tr INA€sl

Mk t for its cxports aeomting for 4.84 p.r@r of irs toral .xpons, h r.rb5

of impons by Saudi Ambia. Ildia iatrts lor ud is elG of no|! rte 2.73

Dddr of Saudi Anbirt tor.l itMris.

TBde figes'1o for rhe l,st six ,ers d as folows:

(Apnl-

t991-9E t720.t7 689_89 2410.06

t99&99 1831.4? 774_29 2@5.76 12.2t %

r999-2000 2419.24 142,50 3t6t.74 - 4.\t %2000-2001 621.12 822.94 t444.06 10.E3 %

2001-2002 465.60 829_20 t294.8 0.76%

2002-2003 505.90 943.00 l44E.9n t3.72y\

' Not.: Inlbrc ai@ 200G2001 d'd nor irclutt iqon otP.not.M pr;drts

ed Ctudc Oil, wbich 6 apFo\. US I 3.6t biui@ in FY 2002{3

n D.P.a6d olcMre,.ntu al ttdb

Major iicm a\poftd by hdir ifttudc b$@d/en-ba!futi ric., t + !lt.l@de

,m, flbri*, nlde ups, cotlon yNm, primary & smi,fhishcd i.on dad sr€el,

chdicab, plaii. & linolM pmduca, mchincry ed iEitun nt!.

Major icc ilporl€d by India aparr nm ddc oil, ilclud. orgeic c[.biqb,itur8$ic ch@icals, allincial Bir, plasric Mrdirl!, $lphu, ion Pyrir..,p'rlp ald wdt pap.r, 06 md nctd s6p, corl cokc ud briq&ir6, iroo 0!d

steel, non-fcmu oetali.

Saudi AEbia is the largBt supplier ofcrud€ oil ro India. The pubtic sc.rd oilfim in Indi. pu!.be abdt l0 MMT ofcrud6 p( y@, *lrich i! .bout t6%

of Dcir totll annual mdc imports. I! additio!, 6dbin pdlltc lldie

compdies also h3ve im contracts wi0r Saudi Annco, wbich accounb for

anoth€r 7 !o 9 MMT p€r mm. Duing 2002-2003, thc lndia s impon! ofCNde Oil ud pcEol.m prcducrs frem Saudi Anbi! doui.d ro lE.El6

MMT won! apptuxiMrely US$ 3.6 bitlion. TLu, Saudi Anbia meis aroud

23 p.Ecnt of India's .rude r€quiremcnk mually.

India ba sub6lartial b?de relalions aith Saudi Asbia in l[c @nsdc sio.also dd s6 thc Kilgdom d m inpo alt MNmi. pdrld itr Bp€t ofiovBtldls, joini v.ntfts, ftnsfd of i4hrologj, projdrs and joint prcjer! in

rbild coDiris. Saudi Asbia also cotui.ler India I importdt tradirg parhc.

dd is inte€sted in .tftcting Indid invcaroE to th. Kingdom iD a bie My.

Coop.Btion in lhc fi.ld of l@powq is e imFnst din@ior of rhe Indo-

Saudi relatiotrship: L32 nillion Ildies re at pEsdt worhng in saldi Anbia,

arolnd 85 pmar ofwhon &e in tbc blw{olld category,

Th. Ioinl Comitte for eoomiq 6ade, $i@tfic, t!.hnic.l od @ltuEl

coopclcrion berwecn saudi Arabia aod India w6 establishcd in 1981. so fe,fivc session! ofthe Joilt Comision Mfrting (JCM) havc b.e. h€ld. fte ldtn .lin8 of lhe JCM @ held in N.w Delbi in Jue 1997. Tbe oqt Gixth)

s*ion of the JCM is *hcdul.d to b. b.ld in tuF& sM.

The Saudi ' Indo Joint Bsiness Council (IBC) vs cstablished in 199? during

th. m€ctins of JCM b.ld rt Nca Dclhi. ThG fiFt sesion ofIBC ir schedulcd to

b€ held in Riyadh r@i .t the time ofrcxl Joint comission n€etir&

A Bilal@l Inv€strnent Pmi&tion ,.d ?roootion Agrccmcnl (BPPA) hLe

bce. fluliad betw€d rhe two coutrid ud isqleIed !o hc forDBlly sigrcd

soon- This will slr.ngth@ the institutional ajmg.m@t rlquied 0o premtc

add n[rh€r etrhec eonomic int@ciion b.rwen rhe rwo mmaies Th. trc

sid6 e also &tively co.sidding a Double TMtion Avoi.jance Agrcment(DTAA).

Scida dd Ten.ob6,Saudi AEbia ad lndi! e ds acrively @p.aring i! rhe field of $id@ adtccbnolo5/. Coucil of Scicdtific &d lndusr.ial Rcs.eh (CSIR) ad thc S.udi

AFlie Srrn.l2r.ls O*mi?rtion (SASO) sisDcd a poslllm€ of r@bnic.l

c@pdhoD in Jue 193. CSIR 6d thc King Abdulziz City lor Sciace md

T*hnology GACST) siened ! MoU for bilalcEl coopcatior in 1997,

Under th€ preelnlme of coopention bctwcen India ard Sludi AEbia in thc

fi€ld of traitring of agricultuBl exp.ft! cidr Indid expdls in the field ofFdparm li)Mgel@t wd€ .lepur€d io thc Kilgdon duing rhe pqiod 1993-98i

agaiD six Saldi agridltunl .xpdts in lhe $uc ficld visitcd India i! duart200r ftr a twc*.€k di@ratiotr-cM-study iou. TLcn prog@. included

visits to agricultuhl res.@h feiliri6 in Ncw D.lbi, Begdorc, K@god

Sine tbe !rcnulgatioD of n w irv.surEdt laM by the Sandi govttmor i!did-2000, ed eiablisbment of rhc SNudi Anbim co€nt lDvshmtAutho.ity (SACL{) in Ap.il, 2000, dany IDdia! rlm hav€ lakh ad@lase ofthe new Saudi laws alloviog for srting !p of 100% foreier oMed p.ojecrs in

the KinSdom. Till date, licenses have ben aw.r.led io tbe Indie conpDi* by

SAGIA for 6bblishing 62 ,oint venturcs o. looplo hdie oMed mn4anics in

Saudi Asbia in difercnl scrors such .s @g€rcnt dd coaulrmcy

*M@s, co4t$ctior prej.cG, releomuic.tions, infmtio. r€.brolog,ph.rcutieli erc. Tt6c Jvtloo% foGignMcd compdiG wftetpecd ro bring d inv6trndt ofdoud US$ 360 nillio! in Saldi Asbia

Thce e about 4? Saudllndo Joinr V6rus in hdia i, thc al6 ofdeigniry,consuh{cy, fl@ci.l sflica dd sftwarc devetopn nr.

The historic visit of Hon'blc Shri Jdw&r Singh, Mirisrer of Exrrn l AtraiB

lo Saudi AEbia in Jdu.y, 2001 brekc.a grcud in Saldi - Indo bilairalrclaliou. paniculdly ia ihe @nonic ti€ld. Tlris wa rhe fst ae. visir y &lndie lorcig! Midst{ wbo calLd on |he King dd Crcq Pdoc. Abdulla!

ed h€ld wide-anging talks wiih his Saudi host, For€igD MDister Saud AlFaisal on issu€s o{bildenl intercst. Th. Saudi lcad.Bhip, @ffim€d iLs d€siG

lo stregrhd bilahl econonic dd tddc rcl.lioro wiib Indi.,

Minister of Sral for Smll &alc I ustrics, Ms. vasudh@ Raje

acconponied by a compositc rlcl€gnion coNistins ofs4relary GSI), Dircctor

NSIC md bBtudsmen .eprcsnting smU sc.le irdBlries f.om Ctr visit€d

Saudi Ambia in Ociob.r, 2002, Duing th. vGi! rhe Midstd n€r the Saldi

Inds$y ud Eleriiciry Milisrer, Dr. H$him bin Abduua! bir rlashin ALYMi; colr@rce Minisrd, Dr, Os.m bin Jafd bin IbEIin Faqih ddCoimor, Saudi Asbia co@l Invcst !.nr Aurhdity, HH ftince Abdullr!bin Faiel bin Trki. MOS'S visn ha r..mmed sFoog bilarahl Elatiortpaniohly in .@nonic .nd @mceid ficld. d.l is .xp@rcd ro lad tog@ld €rcb,lge and joilt votuEs in diffccnl ficld of do@by' r@licularly

Minist€r of Srale tor Extcmal Afai.s, Shri Vjood Klth4 paid m omcial visit

!o Jedda! in seplmbd 2003, During th. viei! thc J.ddah chambd ofComerce md Indsay (,CCI) and thc National Stull IrdusEies Corpdatiotr

Linited (NsIc) sised ajoint Aclion PIan (JAP) for Developodl of slv€s in

t€ddah. Tle JAP cnvhag.d coopmlion in D.vclolin8 a poli€y md

orgmizadoml frmcwork for rhc SME seror ud dcputing Indid expqts ftonvuioN small indsty ddelopn.nt ag.ncia bd fllfuci.l ilsritutioB lo lh.Kirgdon Ior iddiii/ing sn.ll cnt rprisd, udcn ling f*ibility studie,

orgoizing exhibitios of Indid SME prodwrs &d prejcrs in rbe Kingdoiq

Bll.te.d Yllits

Tt6 hisioric v;n of H@'blc SIri ja$sr Sin8h, Minisr.r of El&nal AIlaiB

to Saudi Anbir in ,uuary, 2001 bokc n.w gmud tu SaMi - Indo bilatedl

rclations, panicularly in th. eo@ni. fi.ld- ftb wd thc fmt .6 dsit y m

India FoEign Ministcr who .allcd on the King lnd Crcq Prh@ Abdulah

.nd held wide-mgilg lall6 with his Saudi hdg loreig! Mini3t r Saud A1

Ftisd d ise otbilat 6l intc61. Tlc Sauili ladcahip, dlfmcd its d6iEio shdgthd bilalenl ecomnic &d hadc reldiols with Indi!.

Minist€r of siarc for SmU scal. lnduhics, Ms. VamdhaF Raje

ac@npmicd by . compGite d.lcBation co6i$i!t ofsoct.ry (SSI), DiEto.NSIC dd buin*sm.n reprcsnting smll slc indulrica ftom Cll visited

Saudi Arabia b Octobd, 2002. Duing thc visii, the Minbter n t th. Saudi

Ildstry ard El@ricity Miniscr, Dr. Hasbin bin Abdullal bh Earhim Al-

Ymdit Comercc Ministe., DL Oema bin Jaf& bin lb4nq Fiqih &d

Govtuor, Saudi Arabid c.nct'l Investnol Autho.ity, Htl P.in@ Abdullah

bin Faisrl bin Turki. MOS S visrt har reaffmcd st$ng biltteBl clatroG,

panicuhly il e@noDic dd comerci.l fi€lds ed is dp@lcd lo lcad 10

gEiter exchrnges and joint vennls 'r

diffddl f.ld of @onony, panicuiady

Minisler of State for Exlmal Aifa4, Sbri Vinod Kh@a, paid e oflicial vkil

!o t€ddd in seprdbq 2003. Duing rhc visi! thc J.ddah chmbd of

Com€rc &d Ind4hy {Jccl) &d lhc Narional Smatl Ind$Eres Corpomtior

Linjled (NSIC) siscd a joid Aclion Pl6 (JAI) for DeveloprPrt of SMES io

J.dd,h, The JAP dvGag.d c@!.hrid in Dcvelopirg a Flicy md

organiatioml nzmcwork for the SME sector &d d@lting Itrdie exp.tu fron

vdio6 smll ildulfy deEloplMt ag@cid ed fiMci.l i6tftnio6 to l[cKingdom for id@lifying snall ffle.pnses, undcnal,ing f.asibility studis.

orgdizins d[ibilioB of lndid SME prcdncrs sd prcj..6 itr rhc Kingdou\

and exchange ofsctoFslecific ir.hnology dd busincs dehgatios, incbding

Indid conpeie rg|lldly took part in tr.d. SiB in Sddi Anbia to sbowcas.

th.n prcducb. h S.piemb.r 2000, s dclsiw Ildre tlde ed ir.Ishial

€ftibition, India-2000, wN held .t D.ll)l|m, j! which 25 Indid compoie

sd leat agctrts of $ne otbd Indiu @mp6nies Frticiptt d.

Duing ld rhe y.s, Indis onpdie haE Egulrrly panicipatcd in lh.

following Mul Saudi exhibitioN, i.c. saudi Int€mlion l Oil, G6,

P.tr@h.dical dd Powd Erlibinon (t&u{y.), Saudi Blmcx Fan (EbEi@l

Engin aingxFebM.y) D!.!tu ! e@lioml Tade lan Gebnary), sddi

ElcM (M.rch), Exhibilion on Printiry, P.cring 3d P€tochdidh (M.rcb),

Gird (April- May), Saudi Food (SAt nb.r), S.udi Fahlon/Ialhd Fan

(S€ptenb{), saldi Acdculturc (Ocbber), AgticultN, wat€r sd Agri_

IndBt y Sbow Eiyld\ octobd), saodi Build,sloac Fait (Oclobd'Nov@bd)

Saudi Autoshop (Novcn$€t, Sardi Building md IDI@oB Exlibition (J.ddal,

F.on the Saudi sid., a d.l€gtlion of Saudi €nblpMds non thc Jeddah

Cbmhd of comc@ ed InduEy (JCCI) visiLd lndia in Dmbd, 2002

Duing $en vcn, Saudi d€legales n l Minisles, senior otrtcials, bdutrialistt

&d bsi'.3$M in Delbi, Hyd.6bod "d Mmboi.

The Smtaty Gaclal of Riyadh Chrst r of Com@e and rndustry (RCCI).

Mr Husdr A. ^l-Ai!el

and four oth.r S.!di buin stncn *!cnd.d r!"PartlEship Snlmi1" orSuizcd by CII at Hydenbad dlring Jsu!ry, 2003

A delegltion fron lhe Roy.l Comision for Jubail dd Yanbu visn€d hdia in

F.bnDry, 2003. Th. visiting Scudi rdn dg@iz.d tui|6 @ hv€6dt &Buir.$ Opportuniti6 at Yeb! in Mmbai ed Delhi sd parlicipat d in

CLLt Intmtio.d Ensinceriry Tad. Fdr (IETF) 2OO3 letd d Ncw De[f inFebruary,2003.

A higb lcvcl Saudi dclcgation led by Mt S.lch E. At-Hlesciri, D@uv

Minirter fo. Indushi.l AffaiB, Mnisiry of Induiry ud Eleiricity visited Indi.

on a six-d.y otfic'al visit (AFil, 2003). Tr& dclesstion @npds.d oficids oftlc Mini{ry of ltrdu|ly dd Elerriciry, Mi stry of Ct)|rrjlmc. Ministy ofFi.ece, th. Saudi Anbian cenenl Invstndt Authority (SAGIA), KngAbdulaiz City for Sci.nc. ed Tecbnology (KACST) dd saudi Coucil for

IndBtial Citi6 and Te.blical AB, Coucil of Sadi ChMbq ofComeEe ..d Indurr (CSCcr), dd Saudi Asbid Bsic Idusr.i.!

Corponlion (SABIC). Thc deLgation visit€d Ncw Delhi, Mutrrb.i edBdgrr@. In Nq Delhi. thc dclegation hcld talks with snid r.dia O6cids.

Ai Mmbd, tbc dclcgadon md with omdds oflading Irdid i6d$tioN &d.onpdies, nicbdhg Expon lmlod BanI of Indi& La$.n ud Toub.o liDired,

Godrej A Boyce Mrot|cludng Compey .lc. Duilg th. visn to M@bai, th.

confedemtion of hdim hdus/ (CIl) orguiz€d r .onfdencc on How ro

buiness vith SaMi Anbia', which was andd.d by a ldge Dunb€r of Indi&

conpanie. In Bdrgdorc, lhc dele9rion viritld @jor lT 6bpdi6 $ch dWipre Ld., Infosys Tdhrologio Lid., Digiial Globabn ed SolbveTecbnology Park. Tle SNdi deleeation invited Wipro, tnfosys ed Digit l

Olohabon b siel Saudi Ambia in d.wlopmat of blotmtiotr Tahnolo$,,

in hding in the fta of ERP solutions for SME .

Thc GCC Sdrctadar Ccncral at Rjyadh &d Indie aulhditi* ud bBin6ssftiatios oct to hold a twoJay GCC - ltrdir IndsEial Coufercrce otr 17-18

Fcbruary, 2004 at Munb.i. The Conf.rcnce wolld fotu on fou pnority

3e.toB or th.B: (i) T6dc (ii) Inv.shent (iii) T@blolo6/ T|afd(includbs IT), and (iv) LdGrrial C@p@li@ (includjls SMEVSSIS)-

A higL level Saudi buinc8s dclegation lcd by Mr. Abdd R!hl@ A Al Icnistcbairr@, Council of sdudi Chambd of Commqce dd Ind6Ly (CSCCD

dd ChaiM - J@isy Grolp visit d India in Ocrob.r, 2003. Thc dcl.garior

Ao$orcd by thc Council of Saudi Chmb.6 of Cbm.r€ ed Indutry

included of 28 leadi4 Saudi buine$den r€pre*nting v&iou Fcto6 of

indatty md Fade, 3uch s conpur6, idomtion rehnolo$f,

lelecom! €atios, E{omercq hcdical insirmcnts! lifc suppon scRices,

clrctrical cquipm.n! omcc €quiptun! foodntffs dd food pc.sinSind$t is. lextilcs, letbd, banhng & lm€ial sNica, d!ts, erc. Duirg

their weeklong iour of India, lle delcgdiotr vhitcd New D€lhi dd Munbai,

sd hld @etings eith inportant Indis buins oerniatio6, lmcly, Ctr,

FICCI, FIEO, ASSOCHAM, Ido-Ahb Chaobd of Comfte and lndia

Merchats Chamber, in .ddition to iddividul m4lings vith top hdio

Tic CoNlllc Gqml of India Jeddat had lamchcd a kb site

htto://w.cqii.dda!.com ro prcvide upd.tcd infomtion on voiouE onomr. comerc,al. Consultu, lnlomdon ad Haj s.di*s.

It was noted in ny @seeh work ihat Palistan and India expon sinihr itcms

to Saudi AFbia. lor iNlarce, bolh th€ coutnes export ncq |exlil6 dd fodirem ctc Th. impact of grc{ing rrade Elrtions b€twM Saudi Anbia ddIndia would surly rilect ncgadvely dd also indicaLs th.l lh€E would be a

linle $op€ of Flde irclte betw.d Saudi Anbia ed Pltistal Th.EfoF,

?akisrd dd SaudiA€bia sholld idcniiry diff€Ent rt @ 10 be tradcd in fuhr.Palisrd @ expon paj.ts ed vamish.s, hitw€e dd p@6s food elc., olldilcd have alrqdy id€trtificd i. rhe Fpo.t I,alistan m impon p.ttuh.niElr

dd thon prcducr& lt is r.comended rh3t 1he Saldi des with India should not

grcw at the qpse of lakstin.

D.p&tn€nt of Commerc€ Export lDport Dttr B{khdh'3 loport io S.udI Anblr

vatu6 in US$ MillionI Irc HS Cod. of thc C.mdodiry ir eirhd droppcd or Edl@.lcd tstr ADdl 2001

%Cb'tlcd-'),

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10.5 20.6 Coorodrt

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PRgPAx^noNsoFvEcmAslEltRUIT|

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RIIIDTES AND WASTE FROM THE FOOD

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s^!-r: sULu{U& E Rms ^ND

smNq

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PgARMAff UTJCAI- PRODUCTS

PICMENTS ^ND

OTHER COT,OUIJNGMATIIq PAINTS AND VE& PU1TY AND

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STARCHE$ CLUFJ| BNZWIS.

RUIB8R ^ND ^RNCCS

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^ND LETHER

^RTIC6 Or LLI&JAIDITRY AND

Gln(orin THN srr-K-\rvRM)cur.

WOOD AND ARTICLES OF 'T'OOD;

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PAPER P[P. OF PAPER OR OF

PRJNIADBOO(DS,NEWSPAPETS, O$ On?PICTUIIS AND oTHER TiODUCTS OF TIIEPAINM{C DIDUSTRY: M }IUSCP.IPTS,TYPFSCRIPIS AND PIANS

\{ool' FII\E oR co^xsE ^N|M^l-

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T'PREAN^T?q CO^T!D, CO\ERO

ANNCU,S O' A xN SUIT^BLE FOR

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ARTICLES OF APPAREL ^N'D

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'OOT$EA& G^NE$ AND THE re

P^ITS OF SUCH ArrtclFl.

^RTICLES OF STOIi'E, FTTST€R. CBMENT,

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Gl-{ss rm cL sswARE

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THBRIOFiDdT J3$'I-RY|CoIN.

ART'CIIs OF 'TON

OR S'TEEL

COIPER AND AR1rCLES THEREOF.

^IUMINIUM ^ND ^IICUI ,II{EREoF.

LEAD AND ARTICLFS MNXOF

Toors|MrLlMBfls'ctm.!RY.srooNs/NDFolxs,oF9^SBMET^j-iP^'rTsTI{EREOF OF EASE MITAL,

MISCEII-'NEOUS ARNCLES OF BASE

NUCLE^I RTACTORS' SOr1'!rS,

Ea(mleM^ND P^Rrs rHEixoFi enD

RICORDERS AND REFRODUCERS.I.ND

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AND ACCF,SSOiIFS TEEOF,

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SPORIS nlA{nSTTE3iPARTS rM

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MISCELL{NIOUS MNUFACTURED

tuxid|rt?6r r rcro..IEal! ao

2005-2005: lUSt - Ri| t42735

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Couitry: SAUDI ARABIA

valucs i! US$ Million

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e.hug tot.: ( ust - k.)

o7,t40,0r3) dn7 cad. oit t27,an0a4J

D.pr.h.!t of Comoe.c. EIIolt lEpon Dd. B.ntE:po.r b S.!di Anbt.

vdu* iq US$ Milion! ITC HS Code of !h. Col:Wdity is enb.r dopFd or Gdl@id liom April 2OO3

MEAT AND EDIBIE MFAT OFF^L

()mR^au^nc NIERr sR BDEY SNODUCE] BIRDS'EOOS: NAT1JXIT

PRODUCN OF NIMAL ORTCIN. Ngr

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s^!r: sur,PsLB E 1Rm /ND sroM;PL\srERNa M r€Rhrs LIrtE.^M

MD$rd- FUELS MtrrER^I- olrl ^NDFNODUCTS OF THEIR DlSNi-UlrON;

BIUMINoUS SUBS NCES; MINE*IT

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PIGMNTS AN'D OTSER COLOURINOM^MR: PAINIS }TD }E& PUTTY AND

EXn $VES; PYRoIICHNTC riODoCrSiM^ACHES; PYROPI{OOC ALLOYSiCET^N COMBUSTtsE PRI}^RATONS

PEOTOGM?I{IC OR CNSM,IOCWEC

MISCELL^NEOUS OIEMICA! PRODUC'S.

IL\SNC AND A*NclXJ I]{EREOF,

MY SIDEJ AND SKINS (OTIiER TIiAN

ARTICLDS OF I,!AT1II& S,{DDLERY ANDHARNESS;TTAVEL COODq HANDBAGSAND SIMN!{i CONT AR]'ICLES O' rlw^LGm(oHR TliN Strl( WRM)CUT

flrnsru{s AND ^RrEcc!

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CORX AND ^RTICLES

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PIINTID BOO(DS MWSTIPERS,}ICTUiES AND OTIIIR PRODUCTS OF THP

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ulrlnIll,^s, suNr DIIIL s,w !(lNGsnclq s$lsncl<s, vslPs. RrDrNc-CROPS lM P^RTS ]IEREOF.

A1IC6 UDB OF BTITERS OR OFDoY/{ anncl[ Eoyms;

^RTIcl,EsoFr{uMNhn.AR1ICLFJ OF STONq PL^,98R, CEMINI.ASBISTOS, MTCA OR SIMIL{T MAITRIAII.

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NICXEL AND ARTICLES TIIORIOF.

LEAD ND ARNCLFs'ftIEruOF,

ZINC AND ARTTCLES TIIRIOT.

Tools'WLEMENTS,erI]-ERv'sPooNsAND FOR(S. OF g^SE MEI^! PARI:InrErmF oF r.lsE MF[.

MACHINERY ^ND

MI'II^IIICNarPualrcFl; r^ils lHErlorBLECTRIC'I-MCHINERYTND T8.'5

'O,OO JI.OS

EQ!'IIMINT AND PARTS THEn.8OF: SOITNDRECOMERS AND REPRODUCERS,TELEVISION IMACE AM SO(JIIDRE<ORDERS AND REPRODIJCIRs'ND

MILW^Y OR TTUMWAY LOCOMOTIITSROLLINGSTOC( AND PA! IS TI{BREOP,R{LWAY OR TRAMWAY TRACK

TRAMVAY ROI-I,INO STOC( AND PARTSAND ACCF-SJIOIIIES THERXOF

omc q PHsroan^lHrCINEM^IOCnIPHIC MBURINqclGcaNG PRlOsroN, r@rc[ oR

90, 9? MUSIC^I- IXSTRTJMENTS] PARTS ANDACCFSSOtuFJ OF SUCff

^RTICLES

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MISCEjjj:NOUS WUIACTURE

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tttrfi r,'r.n

200,12005: lUS$ = Rr 44.93l5

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D.prrtDeni of Conmerce Export ldport D.r. B.!kEtlo.t Cou ry-vtre .ooDortitt€J'

LIVE HORSFI.ASSFSJULII I' SINNIFJ

DOMNCUS DLTCrc,G3ES!,n/1lxBS & OUrrBMEAT OF BOVIN8 Nu!{Al,S,

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MEAT OF BOVINE TNIM^II! FROZN

MEAT OF Sr|INEJTFSH,CHILLED OR FAOZEN

ME^ToFSHEEPoRcoATS'FRs}|'cHLDoRl:m

EDBL OFF^! OF BOVINE ANM$S*'INE.SU@,GO^TJTOTSE ASSMTLEI{'NM,FRSS,CHIDTnT{

MB^T .M BDINLE OFAL OF THE MT'TRY OF

ME^T/EDBLIE^ToFI.SLTED'INBrj{.rDRnD/SMOXD:mBL Fl-OUns& FrrsoFM!,\TnGAT

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FISH FIUIIS A OTIF-N FtsH MEAT (WHETMOR NOT MINCED) FRISH CHILLED OR FROZEN

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MOLUSCS w { SHr.!M.IRt}T,CHLD,FRZN,

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(OtItR THAN MI!.WHOLE A PECF-S MruO!cLrr\D,DxsrNFcfD F.Ert{o sxxs a snlR pnTsoFsRDs/FEamFRPrsh:NDRawsrEoFF

TT{WRKD/SMPLY PR}D NT S}IAPDIVORY.TORTOISE SHELL,WIALB BONE & NS

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POT^TOES FRESIi OR CHILLED

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Hf,;trutm;tFffiEEEE@@f,;-]Er;tEr'-'lEt;*-lEF4@r;tEf,; lf,;lf,;lf,;t[;1ffi| ).00 | 000 Jl 0\ r.0o I rd,. tn]ysl

|,, il", iluol[ ,@ I0iillt6lLj.,o lt pr. &o

I

Licc$4 gnbl.d to 100 % IDdtm owned or Sudi-Ildo Jotnt Verrurq t.SrtrdiAlrbt! (A! or t6l t00t)

*bld

In this Chaptd a coopaison of S.udi AEbia dd rrr8raa is b€ing eiv@which would .over Political sysim, of both th. coutjes that include:

Sovemcrt strucnrrc, legal sysrn, adDinisthtio4 locial insritutions ddptuvinci.l sJdm 4c, Aed- t.

KINGDOM OF SAUDI ARAEITf

The Kingdon of Saudi Aabia is d Islamic St ie. Sbmia, th. Isldic Code oflaw bNd on Oc Holy Ql@ dd th. Sumab is te fou.brion of ile legrlsystcm of rh. couiry. The qov Quru is @6idcr€d thc @Bntuod ol lhe

coutry and providB erhicrr \abc.r aod guidace. El€cutiE dd kgislatileauthontjcs arc acrcised by lhc KinS.nd rhe Coucil of MirisLrs, ,irhh the

aanework of Islanic Law. Bsi.le!, lhe Consult tive coucit (Shlra Coucil)hs been 4iablished to advbe lhc King and rhe Coucit of Milisid or @na6p€naining to tbe govemmar prcgE@ od poticie. Th. p.irsry tunctiotr ofrh. @ucil is to &K od modifle ibc Kjradomt sysrd of l!s, bylaws,conFacB dd itrr.Mtion I aglldors!.

CHAPTER-3

COMPARISON OF DEWLOPMENT OT' POLITICAL

AND ECONOtr{IC SYSTEMS

Abddfuuoh.fullsd\\ywdh''In'L@IMoldMdD'.bc'PIHEMur.Dd Ktqa6 or sdi M4 Mhq oI Foriq .na\ tuhtu. 4 Dpttuft stu,w p4 kbrw. rq.dtq D,pta4q6Dtptufttu4 hpd k tnbh bN4Poh.6^.L4vl6bwfu6JJqrd6d.UollMtP@r4'Raqh3&ft'rn'Kkld3'a'..d'a|k.dfai6.|N|H.ud.s.M.3!,t w6. / ptq srdd. rovd Evn. || H;qi wMrs. HctM Moftuvt4Q zuL Eatd bt Lowi zn& Rat h httutu', ad n ENa y/n 4;.

Gov€rnme Structu.e

Tbe Cutodia of th. Two Holy M6qucs, Kiry Fald Bin Abdn Aziz AI-S!I4isucd or Sud.y 2?d Shabd lal4H (1992) s Royal Dee cDlodying ..Ih.

Law of the Prcvi!c.J6'.

coNsTrTuIIo\ GoI'ERNMENT SYSTEM AND Drl.ISrON OF

PROVINCES

Evolution of Srudl CoNdtutionir

Th. following e the lmdndts in ihc aotution of th. constitnrio! of S.udiAsbia: 30 Decnb.r 1932, whcn lh. govcment issu.d th. Deputie CoucilO.diMe (Nizh Mrjlis al,wurda); 9 O.bba 1953, wbd King Ab<tul_&izmoued th. e.hhlish@t of a Council of Miniscs; Meh 1958, wh.. rh.Coucil olMinhte6 wd dey€loped inro a foml decisjotr- maki!8 body wit!lcSisLdve dccutirc ud adnidstFtirc tunctiou.

1960 k th. oil.storc in the ercluiion of rbc @Gtiturion wbd rhe tsl efort tilaying doM a conpFhtuive Corstiiurion ws md. by CmM kirce Faislbin Abdulriz which rcsult€<l i! a popoel fd a Bdic tiw of cov.t@c€.King Faiad pusbcd foMdd Sodi Anbj.s @stiartiout ed Frticipno.y

D.puds C.ucil Ordiu.ceOn 23 Seltenba t932, Saudi Anbia M prelalmcrt, a.d ! nd Srac e@into h.ing. Tbc Fopte @* tuicd one DrioElity, rb. ShD Coscilreprc*nted thd rll ud rh€y brd onc kitr8 for rll. On 30 D{€nbs, 1932, the

sove'mmr i$ued thc Delutes council ordituc€ (Nizm Majtis a!wul6la)."Tl. Colrcil ws codrtos€d of thc D.tuty of FoeigD Afai6, th. Dcputy ofFiMci,l Affaib ed lh. D.plry of rh. Cosuttalivc Coucl.

'" ^.

Ra.at Ftuutu a!.a& rt obp. kbt\dtd ottu. o..,.dhd b wd^bsb, _u s aca@h6 aJ tr. wadd o4d

'h.ir td.4 rAt tur tut

Betwd 1932 dd 1953, smc mjor cbdg6 rdk pt4c pbjch tr{sirai.d refom rte di$o!.iy of oil in thc Estd Prcvince in rhc t930,s ed tnc

inc@silg compbnty of govdndt allaia, "A nMbcr of ulllizeddepdhhls wcre fouded which cvcntudly pavcd thc way fo. tho

establisbnenl of t!. Coucil of Mirisr.E, Th. Midltd.s of Fo.€ig ASaiE

dd Finde bad alr@dy b€ in.xiscrcc sir@ l9l0 sd 1932 n6petivcly.

Wdld We II n6*iar€d rhc lesfomtid of tte Ag.ncy of Defoe ilrorhe Ministry of Dcfd.e in 1946. Duing tle pdiod ftom l95l b 1954 rhe

Midstries of Inicrior, EducNtio4 Agriculture, Commication, Comwc md

Indut y, ed Hslrh w€rc fouded".

Coucil ofMl.ht n s D6bio!-M*jrg Body

on 9 ocrobc. 1953, Kiry Abdnl-Aziz moeced ttal 'l[c pubtic intcr of thc

6uEy', lhe "incrcde of tho nMbd of obligatids tud tbc divdification oflh€ r€spo.sibilities," &d the d€siF iorrensw the control of ihe work and the

Nigmdl of rclpoDibihcs in thc b.sl pGsible lr]@cr," rcquircd the

stablisb@nt of ! ctucil of Minisi4.

The f$t se$ion of this f6i Cowil of Minisld wa hcld on March 7, t954

&d wa an.nd.d by lle King, th. Minist6, ed EligioN lcadqs, Itr his

sp€ech ilc Kjng dsened Oe Islrnic Finciple olconsult4ion inplet@led by

the Kilgdon 6d oudhed thc fiDclios of the Coucil seording to ih€

Stasrtory Rcgul.ti@ of 1954.

The Coucil of D€pulie ftetioncd for 2l y€d uril tt cBton of rhe

Coucil of Minist B in 1953, which bought all fte Fovirc$ of i!€ Kitrgdon

under it oM juisdiction.

Anoiher nil.stone in lhe evolution of the Cotrtitutior of Saudi Ar.bia is 1958

Statuie. The newly eslablished Coucil of Minist$ mtiNed ro @@te uder

ile Sbftrle of 1954 for about fou! dd . bary.N. But in 1958 tbe tuancialed monelary cdsis coop€lled thc tuler to thin! of ddeloping and

reorgoizjng th. Coucil "The Coucil ofMinisirc .s qigiraly founded Edot a fo@l policy lEliry $ncnra, bur nrLd d adviery hody in wbi.h thc

appoi ed Mirisle6 wft otrly to rccomend io dr. King their opinios@nsideriry rbe affan! of the cou.try. In 1958, the council of Minist s,followDg . mjor rcorgdiztioa w6 dcyeloped ilto a fotul dejli6!-Mtirgbody, witb lcgisbtiE, dmrive dd 'rniniqrBrivc frrcrim. Mcr ot rhe

cooslitutioMl basica in the Kingdon wft mneddcd in th. 1958 srall!&.

B$tcLrv olcov.d.rcea1960 w rhe hil€lonc itr the cvolutio! of Co6titution of S.udi Anbie Aconpr.hGive nodm coBtitliion in rhe fm of a Folosal for r Basic kwof Gorcmrce ws tude by Crcwn Prince Faisd in 1959, Urtil lhcn thc onlycoBtitutioD,l docMcnis tbar €istcd wft the Bsic R.gulario4 rLe Srlt!1c ofrhc Consultltiw Cohcil ad ihc Shtu1e of dE Cowil of Dcpuri€, rhc

Coucil ofMinisrcB L.p of 1954, dd rhe Coucil ofMioisrc6 Law of I958.

Al6o!8h this prcposl did tur go bcyo.d rhe proposl sbge, il w thc fst.tldpt to witc .loq . br@dly bascd coEritulion fd rh. Kiigd.n ed n wG

Tbc prolosal ofOe Bdsic Lav of covmtue d.atl with: &. Kingdom, the

syscm of govmcn! tbe dpirat, rhc official lrngug.; so,@ic ud politicat

m$eui €quury of opFnmity, lb. inviohbitity of pdv.r. om$hpi ud itcs@ial tunction of privale oMeBhip and social justicc. In additio4 irdividualfudon is gu6rr.ed dd prere.led by the law with d €nphais oo rhe

prhciple of thc dcfuiri@ of crim., ed rhe.igbr of def.@ atrd !@u$. toi[c law and ihe asuDptioD of im@.ne lnril Suilr is prcv.<r

.sod'r'a'b'q.Ev||BqodhF4na4'-sfund]@fu4''suzt|coPPfu\ha.

tuadq kend E4i,Q lRP4dt )00t.

Frc.d6 of olinion &d fo@tiotr of 3eieri6 @ gMte.d yithi! tbc timiE

of lh. law. It abo inhodded preD$als r ulatirS institurions alrcady itr

exisllnce, hboduc€d a p.opdal for crcatine orher iDritutions such as rhe

ofiic. ofile Attoocy GdeEl, sd thc Nltional coDcit (li,Majtis.l-Watani)

which Elas@t a conplerely n w step towdde rle <tevetolhar ddwitaliatio! ofthc old CoBdltiivc Coucil (Majlis al-Sh!E)".

At thc dd of thc 1980s, tbe Coucit of Mitrirr.B @Dtinu€d ro b. rhc o.lydoFimt polirical iBtituriotr i! thc Kingdon yilb powc6 ro Lgistac ed !o

is$. las Tt. Coucil wN rcspo iblc fo. fomulating slat€ policy, p.rtircntto int mal dd foeign dfris, miion.l.conomy, educatior\ $ci.l wclfre ed.! public affails, ud il orlFr ilcir cxeuriol

li posss€d rcgulalory, €xmlivq ald dnidrrativc aqrhoriry. .Ihc lgEos ew

a get €xpuion of govmnerrrl !g.n is in the Kingdon wbich itcoBidercd to b. rhc golllMolrt n9ore ro nering rhe n€eds ald dcDedeof rbc saudi mrion. ln l[. l98os,. comincc was cltablished duing KidgKl.lidb Eien whos€ Hpotuibiuty w6 ro pr€parc a new basic law. Such a

@Btitutior wd to conrai! egdrrios govfring the Consulrativ€ Coucit_

Bslc SysteD of Coyernde: SiDil.r to Codr qriom of etne. Countri€sTh. 1990s wihBsd srady potiri@l rcfm. Thrcueh consultation mdcoBtdi awz@*s of rhe p69lc! oa.ts dd dliFtions, Kiry talEd puhedf@.rd Saudi Aebi!'s conslibtioial dd particip.to.y mtudD

On I March 1992, King Falad of Saudi AEbia @ounced tb!@ Royal Dedeslhrl 6bbUshed th@ irpott !r cb&g6 in Sludi donGlic potiticat bw: a

"Bai. Systen of Covel@@', vhich is a @Eritution; -Th. Sr!tu for r N4Majlie Ash-Slu", add "A Syslen of Region l Cov.@6t fo. th€ Kogdom'sftirteen Previncq." Th€s laws iook pre*d€ncc ovd all othc, laws adr.gulatioB. TbBc las repEcnicd positive pbSB torads r€fo.D,

Eogoition of citiaB' ciyil ed poliii@l riCrs, dd plblic particilniotr in

Thc Baic Sysr.n of Coill@e is Inc 'Gr i6Frr,nr .osrinrrio,rldocwl ddg i!. thrce docMerc. It5 siglin@a chetg6 non rbc facl

that ir is sinilf io the contiturioN of olhd countri$ in tms of whlt iri!cludcc.

Thb law ha b.m Suidcd by tstanic hw h d.6ni!g rb. mnr,tbc objetiG,dd thc r.spocibilitics of thc Sr!t., as wcll as d.tDing the @tatio.sbip

b.tweetr lle ruler and the tul€d b6sd on brclhah@d, co8lratio4 ti.adsbipald @p@tior In ddirio4 preyisiore for the diffdr lulhqitid of rb. srarc

and thciri d-rclationships, rh6 eddd obtigatic &d duti6 ofrbc !rd., rb.politicd, social dd ecdonic tunddar.l principlcs, fte rndition and

ammftc .igh6 sld fiedom of itrdividuls, dd judicj.ry indcp€dd@@ are

Aniclc 6E of thc Balic System of covemme bandaLs the Btablisbnent ofihc Mdlis Ar-sbua. Au eubcs (s of Alril 2005 ! spar.r ed t50mehbcB) e arpoinred by l[c Kirg. Tie shr? Coucil i! irs new fombcarnc u iisrindon i oded o t ow ciria to panicipate diotly in rbe

a&ninistrEtion dd platuing of country polici€s, dd in nonilo.ing thepcrfomdce of iE agencies.

Tlc Sh@ Coucil, in pqrticuLr, is auiluized to provi& opinios &dsugg.stioG in thc folloeing ams: L'& gen€$l plar of.conomic and social

developmetrt; iltch4jooat lsws, chrders, r.eati.s do ag@IMts, md@!c*ios; rLc iltcrpEittiotr of tawq .d rlE tulal Eports ebminld bydintuEia dtl orhd gov@dtat bodi*,' !.ire Saud .l-FEieal ei.t .bour rL.Shua Ctucil dd add.d, .O! 2? Novmbd 2003, ihc Kine is$cd a Royal

order Snntine wider powes b the Majlis Al-Shu!, @abting ir ioLgi.latiod without his p.mision.

Today, both the Shum Coucil ud rh€ Cabinet nust be in ag@in.nr

td th. legillatio ro g.in ihe KiDs's lppbval. rf ttc vie$ of bolb

v!ry, rh. isfu b ..iDncd to rlE Sb@ C,lmit to deirie w@l.w

loliti.el rcfo6 of rhe l90s irdiqred a gddut r&m bcing oltrcialyp@mor.d itr lhe Kh8dotu or saudi Anbia, whict hls opded r[c der for rcFpanicFatory ulEs in Saudi ADbia in de6 slch as shared deision-natin&od.n@kr dd babrce. The @dt lod€ship r"mition ()@n d s@othlyfollovilg the dar[ of King Fatad, *ae viocd as . sign of slability in rh.

wonelk Rol. i! P.ttdc.L Eobodtc rod Sodd Developn !aIn 2005, the Kirydom hetd its fir3| Mujcipal Cowcih Eldrios Atrlough,Saudi womd did Nt pdticipate in Uis historic.l evmt, a graduat €Iom is

being offDially prcmoted to opc! rhc d6r for Saudi eoner io prnicipate inlh. politidl p|r)<B in Saudi Anbid In SAteDb.r 2005, rc|@.s d*rio Ipmined fof Saudi Chmb€s of Comme@ Boa.ds for rhe ttrlr time in rbe

Th. ninisbial d.cisiotr opd.d $. doo. fd womco s rcle i! the poliric.l,eco.oh'c, ed social d€vetopneir of Saudi Adbia. In Jdqry 2006, rwo

won !.ats in th. elerion for the Jedd,h Chhbq ofCom€@ dd lrdBlry, ud wodd hav. bea.lckn ro rh. bo..d5 ofrh.Engi@B Assciation hd thc Jo@lkts As$ciaiion,

Rlls of Succsio!. Bry'rh

Prior to 1992, rh€ crovn had p6sd to onc orlhc aons ofKing Abdul-Aziz,

acco.ding to s@iority. consullaiion, family @ft€nsu. ud Bay'ah, ftismcchdisn has atlowcd a snoolh l.a6f€r of !owc. for ovcr six d@d4,

cov.ring fN edsio ro lhe thDtrc, Tbrcughour itcsc y@s rhe slcccssiotr

proc.ss fouow€d lb. Isldic tradilion of dBie'llting Mulim lad€R. such stbe fiut fou caliph! (Al.Kholda Al-Rabidon) selecbd tbrcueh the pM€$ of

ShM (CoNltatid), a'd B!y'aL bctwen Mulin subj@b ed a tuld.

Lard, a significat qualirativ€ cnd8. wd irlrodnced by tbe Bdic Stltd ofCov.mnce of 1992, Kins Fahadb D.crce. The Badc syslem i rodu@d

cbug.s in i& rulB of su$ior by allowitrg rhe elcc$otr of a King or CrcmPrinc. Eom mong th. cbildra of tn. 3oa ollhc fouding KinC, Abdll-Aztibo A&ul-Rahmd Al-Faysl Al Saud. o! i!. bdk of 'llitability" ed lhe

nosr upngh mong ihc4 nther tbar l.nionry_ Ihc law allows thc Kine, for

cx@plc, to ch@sc e bis Cmm lrirc. a son or a aph* istead ofore ofhis

breildl who, hditiolally, hav€ b€.n rh. otrly p6ons .ligible for suc.6siotr.

The Basic Srrten of Cov€tmcc dsrts thai, upo! th. dcgth of tt Kjng, tne

Crewtr Pri.@ shdl a$nc ln. @yd por6 mtil Bayah, by ihc pcople, is

givd. Anicl€ 6 oa1h. same law EquiEs cirid lo give th. B3/al to tbc Kitrg

in accordnce with the Qule and rh. aadirion of ilc Prcphet in submi$ion

md obcdisce io lin* of 6c &d difnculty. fortue dd ldvmity in

cv.ryrhiry cx@pt thli wLich co ravd6 Isl@.

Tbe Aryilh Courcll2006

On 20 Octobr 2006, Thc Cutodid ofrhc Two Holy Mcqus (i!g Abdutah

ibn Abdll-Aziz i*u.d a RoFl dd *rablishjng. Coscil @lLd 'l[c Bayah

Council", irstitution.lizing the pd.!s for ddemililg ihe ftr@ stccersion in

lne Roy.l lmily. Thc Bay'&h i3 Uc compacl tbal binds the rulr to U. rul€d in

Isldic Shtri'lL Tlc tulcr omib hi@lf ro follow ed Forr.r Illatl! ro

$ftgErd lh. rctto! of the citit6, dd io Fotel OE l&d tnd tb. !4ufty of

TL rulo4 in nr4 |l! bolDd io sive tdvicc ald !o be loyal to t! luli'r in

wdyrhira d..ta dlr enicl csttadica Lbd Ir! tw Lldntt hw i! rttrnoihd njd si.D do4 th. rud of @ddhniml rdo.u, atd tb. ld&v.h'Fcot in Sludi Anbi!! mnrbd nfi @hniod 4tiv.ly €Db!!6 ttcodimilg @diui@l ehnid &d o.dcrnitdio in th. Ki.gd.d, ehingG tdd i! hed with lhE daelopm.nt of tb. Sbi. dd th. lociery in St'di

Anlia $td d.rceto.d k tue'lrb of rb S.di ..qai.c., d win b.

folloerd by oih.. d.wlopoets wh6 lh. n .d disd.

Sddi Aribir is diviiLd itrto 13 Dr$vilB. E!.h Fovi@ h.r ! 8ov.ind, a

d.Ffy sffi, ed I FwiEhl dril. ft... c(rDih d.lifdd o lh.n Gd! of th.l ptovtnc€, *o* on lh. dcveLotm. bodgeg 6cidd frn@

&!Gb!o.d tlna d edE oeooS F!t!d-

Th. cffi .nd D.Fay Gow.u of c.ch FoviE 3ff B Chai@ ard

Vi6cldlDD ofibn6lcdiE Piwiail cdDiL

Golqa i! nsp6ibh tuN

rinDiri*di4 a.h of drptovilg ed is .Ld.d tut

r '@ublc Fiod of fdt

E|.h couxil dd.i,rE ofdlc.rt ten citi@. A! sirb

" D. Mot ^,td lbd,h ttE rvi KsrN q w ltunh. nNa uuD wtyENrrr,c't tt 4 ttuptc a.e D.F*t 4 Peb.I tue I*e b H.dht

the M.jlis Ar-shM, mcmbe6 of th. coucil palticiPst in @Mitbc6 thal

fo.us on rdiG isud of inteGt to the !nvi!e. T!. odcil isuc FFrts,

which e $tdln€d to rba Minislry of thc lnldior dd th6 lacd on lo the

appropriaie 8ov€mcnt ministriB ed sgetuies fo! @Bid@tion.

Th. Ptuvircial Cowil Sys&D i. dublislcd udd thc byla* Mouced by

the Kirg Fald in 192. Th6c bylavs divided th. dutry into 13 previncd and

d€ancd tbcir adminhtraiive shultw, how rhey would bc adrdnistcEd, &d tle

BpNibiliue of thc govdm sd othd ..gio.rl om6. In 193, Krtg

F hd Mncd 210 l)mb6 for thc pbvircirl @ucils.

I! 2005, muicipal .latios w€te hcld io eldt h.lf of lh€ m€Ebers of ea.h of

ihc | 78 ouicipol @ucik in thc Kilsdon Tnc mining lalf of llc @wiln€nb6 ed rlc tuyo. e appoinLd.

cov.rlb.ot tg.nclBn

M.jlh ALshun (Couulidve Cou.lt3rTh. Majlis d-Sn@, or C@sulbtiv. Coucil, is a l.Sislrtive body lbat advise

the King on iss that de iopordr 10 Saudi AEbi& It b a modcm v.Nor ofa Feditiotul Islrnic corc@ra @iblc leadd co.$ltitrg eit! Lded &d

exp.ri.n cd citi@which ha alw's b.o!n liccd by Sodi ru16.

Th. Consultative Coucil clllmrly @sists of 150 nedbs lppobt€d by the

KinS for ! fou y* r.nRabt tcd Bas€d d th.ir e,qdiec, ncnhas e6sigr.d lo comitlc$. lide.re 12 omitt€e thal d€al with hulm iiglts,

educlion, cult@, ilfomation, bcalh and $cial dfra, swic.s and public

ntilitiB, fo@ig! afhiB. wity, .dninistralio!, IsLDic a$.ns, eorony ed

Ib sadt Fadtu Mord's6,& E tcl h.?a" - rut..1 a!' otwtaucb n{aa uaaa rcc} o^d .darb,,'t t tdab d b. d6ar kdcL a.t"M. at b@laL@ortu w oesd

Originally .slricled to discusion of Egulatioff ud is$ca of natroml and

public in&6! the tudde of Majlis Al-sbw w3 br@dd.d i! 2004 to

include poposirg nw lcgislatid ed atr ing.xisting laB wiltoul pnor

slboision to tbe Kin8. 11 bls llways bea abl€ to requ4t that Eovm€nt

officials pirticipaL in kcy |@t'Dgs ud alply for .c6s ro gdctMdl

d@m@B. On Apnl 7, 2003 the Majlis Al-slu bcc@ a tull nenb.. of tne

lntlrPrlim.nt ry Union,

L.gal sy3ten: Bded on Shei'a law. sevEdl s@l& cod.s havc h€d

intoduccd; co@€rci.l disputes hddled by rpeial @mrtle€s; b,3 tor

a@cpted codpul5ory ICJ juisdiction.

Becutiv. bnicb: King &d ?rin. Mhister Abdultl bin Abd al-Aziz Al

Siud Ginc. I Augut 2005); H.n Apparcnt CrcM Pdr@ Sult n bh Abd ,1-

Aziz Al saud (hrlf brcthd of the tuneh-rhc Mon th h toih the chief of

sialc tud he{d of goffi.nt

Legbrrtiv. brorcl: codulrative Coucil or Majlis al-Shua (120 n mbqs

ed r ct irh.r aploinr.d by tnc nmarcl fd fou-yd tcm!) Coucil of

Minisr* mounced in Octob.r 2003 10 irtudlc. cletioB fd hrlf of the

mcnbd of l@al sd prcvincial s$mblis &d a tLnd of thc mdb€B of the

mrional Cotrsulr,tivc Coscil d Majlis al-Sblt. inc@ahlly ovd r pdod

of fou 10 tw. y4; in Nov€nbd 2004. the Ministy of Municipal dd RMI

Aflais ilitiatcd voter Fgistration for padirl nuicipal €oucil cl€ctions h€ld

dtionwid. &on F€bruary thrclgh April 2005.

L.gislatlo! in S.udl Anbia works throuch myll DeB. co8ulative Coucil

of 120 m.mb6 dd a Ch3ilr@ @ appootcd by rhe Mo|eh fd Fou-y@

CuneltAdmldsndtof':ln Decmber 2005 th€ Coucil of Ministei .otupri€d otrlo Princ Minist r: King Abdullah Ibo Abdulazt A]-Sa!d

o !i61 D.t'uty Prim. Miois&c CroM Pri@ Sulan Ibn Abdulaziz Al-Srud

o Minilt r of MBicipa! & RMI Af.ils: Prin@ Mer'€b ftn Abdrl@iz Al-

o rnbior Prince Nayef I}n Abdulaziz Al-Saud

o For€ig! AfIaiB: Prince Sald Al-Iais.l Ibtr Ab{hrlu iz Al-Srud

o Civil Slnice Mubmd Ibn Ali Allatao FiM.c Dr. DBlim I}n Abdul&iz Al-Asfo H€lrh: Dr. Han.d lbn Abdullah Al,Mdic

o HiCa Edu€tioD: Dr. (bald lln Moham€d Al Alsalyo connerc. md lidut y: Dr. q.shin Ibn Abddbn Al-Yamani

o hlanic AfraiB, Eftlowl@r! Crll &d Cuidd@: Shoi*n Sat.h lbn

Abduluiz Al-Asbaild

o Jstice Dr. Ab<lullr! lt! Moblmcd Ibtr ltr.Iim Al-Alb.ilbo PcIolcl|tlt 0!d Milcol Rcewccs;Ali lbn lbBlin Ar-NliDi

o NalioMl Econony and Plaming: Kb.lid Ibn Mu!@d Al-Queibi

o Trailpo : Dr. JlbaE! Ibn Eid Alsurah.d

JI'DICTA|, BRANCH: SUPRIME COUNCIL OF JUSTICE

The Ministry ofJNti@ adnbjsrels $e coury s Eore rbar 300 Stria 6rrs.T!. Miiisicr of JustiHploilt€d by th€ Ki!& is ssi$ed by thc "S|prene

Judicial Council", a body of eleven nenb.s ch6.n from thc mtion's @nse4olcd religiou jnds6 (!lam'Fs.fl* s chi€f jutic!. Nw comdialcoutr for Eslvilg trade dislutcs wcrc tr&sfeftd t! the Mini{ry of rusti@

fron rbc "B@rd of criev@" in ,uly, 2005-

Dr. ^rot$tuon

kmnh /t-EoI*r, Xirzdon 4 srtdi /nbb,cone d dcc&tut stu. D9a,M' at potubat s.tu.ttol I b,.bd k : htq !tu| ttutu eav 3c

Jutlc.: Thc eligiou lae of klm (Shdia) is thc @tmon r.e of lh. led, odis ldministd.d by retsiou colns, a1 thc hc.d ofwhicb is a chi.fjudgc, who k

.esponsible fo. the D@artuent of Sharia Afrai6. Stria court! arc concened

primsily with fuily ilhdirance &d propcrty natteB. The Comincc of lhc

scnlcne of comdcial Dspuics is th. comercial corn. ouo speialiEd

aurts or comi. it6 include onc d@lins mlaively wiib labou 4d.oDtoyBcnt mttcB; rhe Negotiablc lDstrudt Comi1le, wLicb .lc.ls *ith

c.g ELtirg to ch€qu.s, biI! of cxchdSe ed p@jsry notes; and lhc

Bodd of G.i.vmG, p6.o6 dispul4 eitb the govelMdr or its .gdcia

dd wbich also ha juisdrcrion in t deMk'intringcn@l car.s |'d b the

authonty for enforcirg forcig! court judgn@ts. The dalh p@lty b in foEe

for nurdcr. Bpc, sdony, amed rcbb.ry, sdbotagB dog tnmcking, adnltery

od aposlasy; exeutio$ @y bc held in publicri.

GOVERNMEM AND POLINCAL CONDITIONS

Sup.eFe Courcil of Juric.BBic Law adopted i! 1992 d€cla!€d tnat Saudl Anbia is a monarchy rulcd by

th. soB and srodsoB oI King Abd Al Aziz Al Saud, od that the floly Qur'di! thc constiitlion of ihc coury, which i! govemed d tle b4is of Islamjc law

(Sh.nh), dd iI€rc @ no polili@l padics. Tbe king\ powc6 e limitcd

bMuc h. mBt obefl. thc Shri'a rad otLr S.udi traditic. g. bur Ebin

a @B6s of tle Saudi qd family ad relisi$ lad6 (ul.@), md odt r

inporunt dmrs in Saudi wicty. The l..dine nmb6 of lLc royrl fanily

choos. rtE ting 6on dong lhds.lv6 *ith ttD $l&qDdt approwl of th.

D,. Mohonnd kdin 4-Eotua, xh3tu at sdi /dbb,con * d

^luryd sctu, D@tuqt d P.rtut stu,

Dt. t M Min r.84tu. Knstor q w te,.,t4 4 tu|tu tuq. DqM' al PM scb4

Saudi Kitrgs gFdu.lt d.vclop€d a ccnrzl Sov!|menr s]sld. Sie. 1953, rhc

Couacjl ofMinbters, appoinied by and r6loBible to lhe king, has advbed on

I[c fomulatioi of g6crd lolicy ed diEtlrd th. a.rivirie of th. Brlwincbu.a!.fuy. this @ucil corsistr of a prin€ ninist r, thc fd ald F@rdd€puty lriec hinisles, 20 niliste6 (of ehon rl€ ministd of defee 6ls is

lhc aeond dputy lrin minjsier),lwo ninisld ofsrar., ud a snEll Nnb..of advhc$ ad heads oI Mjor aulonomos orsdi2atios.

Legislation b by resludon of thc C@dl of Minist .s, Ftili.d by rcyat

dece, ad mut b€ .ompdible wirh th€ Shari,a. Justi@ is adhinisreed

a@rdirg ro Oc Ski'. by a stst.e of rctigioN @un wnos judg6 @appointed by llte kirg on ihe r€come.datio! of the suprem. Judicial coucil,.onposed of 12 s@ior jukts_ rE iadepddcncc oflhc judiciary i5 pbtccted

by law. T[c kinS acts d rh. hghdt conrt of .ppsl ud !6 lh. powtr lopardon. Accas lo high ofiicials (NuUy at a mjli!, or public &diocc) ald th.ngbt ro Ftirion rLm di@rty @ wc -dtablilhcd FaditioB,

In S.phbe' 1993, Kins Fahd i$u.d addirioml Ffom d€crccs, appointing the

beDbcs of t[c @tioal CoButtativc Co@it aad s!.Uing our proccdus forA. new cowilk op€Flions, Ile mouced rcfo|m Egading rh€ Coucil ofMiri3l6 ircluding tcm limitatioB of 4 ycais md rcgdadG n pFhibil.o!flict of idcBr fd diniscB dd or[.r hie] ta.r otrciat3.

Co titltio! .n.1 cov.hmcneTh. King, Frhd Ibtr Abdulrziz At-S.trd: $c@ctled h Msy 1982, after KingKhald\ de{h. h 1995 King Fahd suff.Ed a srrol@ dd b@d€ det@ro,Princc sdlo, a brethd of1h€ king, w consid@d to bc ldt in tinc and

' lk Ror! E,bq.tsdi1tui4r4otu.)fw.tun*a^i@_uM.

Co titutio@l ptutice ddiB Aoo Sbsi. l.v. Tbrce byd d.qB for BdicI-aw w€E e$ablished on Mdch l, 1992 vhich dcfmes the sysleN of cmtrdtdd Euicipel govmcnq dd sct up a cmmitre of 60 ncobes. In Aucur1993, CoBulradve coucil (Mzlir7t/-Sroz) by royal da@ wa nolnmled,cbai@ b D.. Salih bio Abduttl bin Eenaid. rn July 1997, rbe Kirgd.cre.d e ilc€e of Consulrarivc Coudt 10 . chaimd plu 90 menbes;dd in May 2001 it ws inc!€asd once .Cain to a cbai@ ptls 120 n nba.

saudi Aabia is a! ab$lur. mofrchn cxdutive powd is dis.hdged tlough !Cot"cil of Miniite^, .@sist]D' of the King, Dcplty princ Midlter, ScmdDcprty Prim. Minir.. dd Cabin€t Minin6. Tne King hle the posl ofPrrDMi,irrar dd can vero any d.cision of UE Cowil of Minisr€E wirtin 30 dals.

N.dotr.l Atrttrco Sei lit tujd wat.yE (.Onw.rd rowd.ls rhe glory ud th.hcjghLr'); words by nrEiim Klafaji, twe by Abdul Rahnll at Karib.

In Odobd 2003 the Saudi cabilet auDuced rh. @hry,! fiisr evd.leclicto .rrre IMI mhicipat @urciis. Th.y e@ schcduled ro bc hetd in 14 ro%tud cih6, with hatfofthc oew nuicipal oucils b be .tcct d by th. lEopl€ald dE othd halfappoilcd.

TIP LN ol th. Comctt of Mini.rerrs

2.

Tbrl thb taw $pcF.ds Coucil ol Mirtulcs trw isu€d by RoralD&@ No. 38 dlied 22l10/t 37? H. ed it! hendmcnls.Tnal all GgulatioN, orda dd d@a in foM shllt GMitr %lid wh@{,is Coucil of Minic6 Law cm6 inlo fo@, uril i!.y @ a4od€d

l,N@ ot stu uvfwLem. colLc" of Mory.d s.tu.trtr:I:;:':^^.* hfu.l, b k|ndh^l sda^;!cMd oftht vottd od

^.t tu6 p br 2oa5, wt@ 2 ow @4

l. That rhis dele shatl be puUish.d i! r!. O6cirl cs*f. od sbalcon€ ituo foice ninery (90) dars !fter rh. tomrion of Majljs Ash_

Shun, as stipulsted in O€ f$1 Rolrl Dere€ cotretus &

Pror'lrcld Divlrlon lnd Strtenre

The Kiog is th. highst ruthdiry in rhc @ulr$ hc is lhe primc Minist r, Chicfco@d€r of all nilirry secroB ed eed forc6. Ec hd wide 6nge of!owd. Howeva, hjs pow6 m nor ab6otu&; hdc. rhe IstEmic taw

"Shrdd'oh" dcrdi@ thc nanrc of timir.tiols rh.r 6triq suc! pow6,

Th. Cowil of Ministcs cdlin* bolt l[c.tutirc add t.gilbriw poscrs,wiihin rhe padnctds of Uc Islamic hw ..Sbdia'.I-, It fomut td thc ini.mal,qidd, n@dsl, defedc, cducarion.l mrioel polici6 .!d rll oth.r aflliE oftnc srsra TIE ddisiG of rhe @ucit re foal, qcelt for |h6c dtr6 tb.rreq!'rc s$a&c ofroyat deqee, in rccoiddcc io the @ucil,s Egut.tios.

TbB stslom is aimed ar olancing rhc t.vel of addinisFarirc rc*.s well arine d.velopmcdt of i!€ provincs of tte Kingdon of Saudi AEbia, Eachpmviee is comprii.d of ! rubd of disr.ict3 od a.a!, wlicb B@lly @distdbut d keeping with geogEphic, d.bographic ed ,ecudty coNi.lentions.

Aens oth6 rojd.o@du th.l gdn th€

ixeir app@t .l€sjrc, kJ k ep th. rcgion

iltlEnc€,10 r.irfoe @rc.prs of Istuicm{hdjs4 of Asb md Islmic solidariry,

wbich is !t@t nilg lh. Anb dd btmic

attcntion ofric Saudi Ladcship, is

olt of the &Di@ce of forcipprcp.gadotr "d.'M", ro srugrhaso ar lo cohl.r ile zionilt dugd,UbtrEl snd binddilg rh.ir eforts

D uob@ tu llgde ru.d@ 4 sd )db4% ct krastu &kta. Dw.^t oI pontkd ft,e,

Rindh is tLe epital ofsaudi Anbia_ h n 1,800 equ@ tjloDeters in d@ aDd

is loc.t d in the ..n1d ofthe Ambie }€ninsula with mdc thd tbrcc ud a halfmillion people. Ard tm which rh. ta& Kiry Abdulaziz Bin Abdulnblm AfSald s.t of to uiry ihe Kilgdon.

MrLlot l'Mrl(rrmrb is the nosr inlottalt city of tl!. Kingdon wh.cthe Eoly Pl&6 of aU Muslim woddwide Ka'aba is tooled. I contdtu tieHoly Mdquc dd th€ Alcidr HoB. rhe K..r!& It is rhc bin[pl@ of th.Proph.r Mohmad (p.acc b. won hjm) wh.rc he @eivqd Gvetation at ihcHiE Care. From Malr.\ tlc ddtsting Irrhic CaI starn d lo hMity s !wholc. Evcry yed, nillio$ of Mutim perfom pilgdMge lo ttc K.,$a,lh.Holy M6que dd $e holy plrc6 at Mina, Muzdllifa and Anfar

Madlmh Al-Mumwrm i! one of th€ bigg€st cities in the Kingdom aDd tbe

s4ond nst inpo.iel cily to alt MBlis sc.ord ro M.,klaL 11 cont ic .nub.r of lslairic Hoty plNc6 of gr€r inpona!@ fd MuliDr a! a wholc.PrcphelMuhdmd (pesc. be upd Him) ws buied rhde ftr prcphefg

Mosqu. i, Madinal is d. of the &!e ncqlcs ro which MusliDs ryortdMdc

J€dd.h b €lled 1he tsndc of the R.d Ser", is rhe Kingdom,s tust sport, Iis a eat My for pilgrid io tbe ttoly ptac6_ ft is eid Inat the Motb6 ofhMity, Evc" is bui.d in a tomb b€eitrg b* tue in rhc cmtd of the otd

Drmm.m &abian culf i! local€d in the E3r.m pbvinc., is o& of th€ Dosrmlort !1 ciri.s in the Kitrgdos. Il h m iDporr, oit pllJ@og l]@ &dsev.nl indBtrie are local.d n€r DaMsd. The 25_km lory King F,IdCaMMy @D.cting Saudi Anlia with Balrain is atso n@ Da|t)|):@ T!.

" m. Rqd E4h4'q altqdi )nbb, kluhdd ontu,...tu ^

fidhi@r _us/.

@st of caeway w$ aooutcd io sR 7E0 nillion. Il wa! inalgMrcd on Ra!i'A*d A, lry H. .!d is coosiddld thc ldgc3t @lscay in tbc Mi&Ic &$dd the third ldgst in the wodd.

h addition to lhcs. citi6, th. two ildutrial citi.s Jdrtt aad Yubu phys !!idport nt rclc i! meting noi lN th6 5 p.|@1of th. wodd requircm@ts ofpetochdrical pod&ls i! plnicuLr .ad @ral Fodlcrs in ga.r.l, Jrtdil is

lo@led otr th€ Asbid culfwbile Yeb!, is or lhc R.d Sca, Ad€{" I l.

Otbd @jor citi.3 in th. Kingdom e: Abs, Dbibm, Al-Khobe, Tail(nafi, Abb4 H!il, Aff, Tebulq Babb, J!v4 Najea Ji2ra Buid.!, Od!ir.,

Fd Fircipal Sludi BuilB C@tacE c Allq-2.

ISLAMIC REPUBLIC OF PAKTSTAN

Tt. task of funitrg a consrirurion of ind€p€ndcdr p*isr.r wa €ntrusr€d ir1947 ro a Constinre Assmbly that als iucriored s the couhy\ i.i{iorLgislatN. UrfomDrely, wiu ttc pssilg av.y oftle Fouda ofllc Nltiotr,

Quaid-6Aan Mohmad Ali Jima\ dd rhc .ss4sinarion of rhe fd ftnneMinisrd, Mr LiaqlBt Ali K!.!, pretr&t d poutical irsiability cNu.dMinilrri.s cdc dd w.qr in quick succBsid. Tn FiBt CoBtitudr A$.nbtyw.s uable to give the coulry a Cotutitulior in sevcn y@, Thc rhdGovcnor C.acFl, Mr. Chulan MohmB4 disstEd n on the gmuld tbra nhad f.iled to pdfom iis rask, The Sccod Constitu€ A$cmbly tancd thc

Constjtulio! in 1956, &d e Islmic Rcpublic wd ptulaimcd d 23d Ma41947, ehicb is obkry.d .rery yd s palisrar Day. Tlis Costiturioo BIedchl and parlitunbty in chatrtcr. The qisting folr provincee in W6rPalista! w@ uired inro one uir while Edt p.tista! @r3rirrtcd rh. otho@ir, The coury thu @ruistcd of rwo provires E $ paltise! d.l W6tPalistrFwhich wd€ givcn a systen lrd€r wbjcb rhey @joycd e targ. me3lEof sclf-gov@cnt lrd ruronony',.

Ministcrial i$tability hn4 horevq, baon€ cldcnic dd it paveil rb. e.y fdd Amy iak {vd. Maj. c€r. Ista.Lr MiE, llc thd ?rsida! delar.dMartirl kw in the coutry tuly itr Oclober, 1958, dd appoint€d c6aalMobmd Ayub K[na the d6 CodDarda-i!-Cbief, s the Chicf MarritLaw AdninGr.tor, who asMed !ow.6 ofth. pcid€nt on 28 Octobd, 1958,

Aftcr . linlc over rhree y.4, he pomulgated a rcw .onlrinrtid i! Mdh1962 &d iDtodrccd r!. P6idcndal f@ of d.noctuy ,. oc @ut /.P.tistan codiNed lo bc a !€dedion, Thc ncw Co6tituiion int oduced

.|oblq'|b.l'asu|4b'vh@J4a4qo'|d41M{Pah!fulPh'llbdtt\kltdssa,d'afu|3rc4AM|

db. Ja4d 8\tu. ".

Hon4 wh84 Hcl.e uottr

indnect sFtcm of eiecrio$ for the PGidat s wclt as the fedchl Mdprcvilcill legislatures lbDu8h d E!.crorat Cotlcge. ft. lyeteo did lor 6!dacepr.nc. mong the pcopl€. Th.e @ a Ms nov@6t in 1969,

wheEupon he Esigned ed hod€d ovd powq 10 Cmml yahya Kha4 ilctha Co!|)rmdd-b{bief, who ponulg.red Msniat Ilw aftcr abregating l|).1962 Constitltion, ltr Mdch 190, hc issled rhe Legat ff"rework Oda udc,which thc fou ptlvine vhich had oDlris.d W6t Pakisbtr w@ div.d.dd g.rc€l el4tiom v@ hcld for th. Nario!.t ud povincial Ascmblies inthe folloeitrg D{crnb€r In rh6e el4ri@, Tbe Awdi taguc gair.d !mjority of s€ts in the NarioDat As.mbty whilc the pakisbr pcopl€t tartywon a sikabi. lunbd o{ Nldonal Al$nbly sdrs 6on tlc fou ptuvir@s inW6! P.tisllL Va.ios facroB inl.do.4 and a civil wd €led in EstPakistd in Mdch l97l vhich Butled in lle Indie invsion of that prevince.

On 16 Decmb4 1971, Dtrta fel ud Ear pakisran delricd jr.|' d &

'odepend€nt cour.y, Bdglad.sL

on 20 Dcembo, l9?1 Cm.BI Moha@d yahya Khar rsiglcd dd \,tr.Zufika! Ali Bhutlo l€ade. of Oe ppp ssuhed thc ofrce of ?rsidcll ed Chi.fMartial kw Adnidnrabr and corvocd tbc .let d Nari@t Assdbly.Mrtid Lav wrs liffed on 2l April, l9?2 dfter framing an inrerin Constilutio!,T!@icr, a pcfrDlor CoBrinlrior wd rdopr.d ed dfoE <t on 14 Augusl,1973. ll *as fedcnl in cba.acrer wift parlimenbry rcpubncan srsrcm.

Dwing lhis pdiod of ravail dd ribrtation, rhe tdditionat fcd..sl Swic.et3ten El:@cd irtact dd, und€r it, the day ro day .dnjliscatior of IhecoEky wd cei.d or\ db.ir otr the prc,ind.p.ndde plrt.ms ofric coloni.tnl€. Sevenl ConrDiiteq and coduissioG had i! tle nc&rime becirploEicd to @rSdize th. rdDirisFetiw srucrr ed $@ chsg6 w.€intoduccd. wnh th. inboducrion of the rew CoBrituton in t973, how€vcr,

the seoice structe €volv.d by th. Bndst KroM ds ..tut s$tcm,, Ircplac€d by a mified gading slrten.

Th. fist geocrsl €latioB hder tle 1973 CoNtitltion wft hetd in March

1977, but th@ re allcgrtim of largesc€lc riggirg by ilc rulilg p@ple s

Ptrty wbich res ted i! couby widc asi2rion ud cosidenble lcs of life.

The agihtioD tmed i o a Ms novement with tle de.0.and for ,.Nizd-i-

Mustah (lslamic Syst h) in rhe oury. I}. AmEd FoE3 int n6cd iosve rhe sirudon, dd took ov€r rh€ sdminbtndotr d 5 Jqly, 197?, Maniat

kw ws pmlrimed od Caeel Mohmd Zia-ul-Haq, Cbief of thc AmySutr, b@@ the Chi.f Manid r:w Ailtninistraror (CMI-A).

The lEsid@l Mr- Fazal Elahi Cbau.lbry, agdd ro @ntn!. and ac1 on rh€

sdvie ol thc CMI-A, Tt Chief Jurica of th. High coun t@t ova sGovmos of th€ Provinc.s, The CoBtinttion was rot abregat€d, olly mnc o{

'is pbvisios eft lut i, .beyee_ 'nE Snp@c Cout of patisarn ult td rhe

validity ofihpositid ofMadial taw udd the dNtine ofncc.sit_

O! the expi.y of the fivc-)d elcd.d Ld of thc pEidcnt, Mr. r@t ElrliChardhry, Gmcnl Mohanmd zia-ul-Haq alsM.<r l!€ off@ of th. Faid.or

Thc constiNtim of lskisrad @ approyed in 1973; iq iis Article (u) irslipllates ttat Islm is ihc otficial Eligion of lhc couhy. Tbe gov€rDrace

sysrcm in rbc Rcpubtic of pst isld h an Islmic R.p!bti6 tuIitatcnl sysrmba$d, pdliamoiary .nd d€nocatic, Conpding pakisr.r wirh orhd non-hNlin courrics olthe world @ be d&nb.d tbD @ of&. gHt slachG

"W. arc . Natio4 not a Minoriry. A Ndtion ofa l,udr.d dillion,gnler &d c€I']rs in c@rd C@y, dd wbar is nDE, qce a Narion wirh ou ou dkrinctivc cultu€ dd civilizio!,laguag. md lit 6tuE, an and no@l*urcs, sde or varu€

dd prolmtio!, la*s arld oont codB, clrt@s dd cdcndd,

dicl and dftss, fai.s ad festiwh, history ard hadirioc, aplinrdq

dd mbili6. Ir short, w. nav. ou (]m distildve o l@r on

lif. dd of lifc. By all Ixmos of Inlemtional L3q we art !

Fedenlio! ud ils leritory'5The Ishnic R€public of Palistan i! . fed.El rtatc wirh lh. foltowing

(a) Provi@: Pujab, Sildl, Nonl-W61Fbrti.r ed B.lu.List r.(b) Fad.ral Capital Tditory oflsLhabld.

(c) reddlly Admin'srercd Tnbal Area (FATA), divided inio tetr

rdrdnidrativc divkim hoM a Tnbal Agdci6.

The Fcdcol Gov€meri b4 rhe aurhority ro gmt ciheuhip of Pakbtan to

oyorq Thc citihship rul6 arc govancd by tbc Patistrn Ciriz.dslip Act

1951. Bvcry peMn bom itr Pati$En aftd rbc cfua@h.nt of th.

Citizolhip Act l95l is a citirn by birth md so is a p6or if his fathr b a

citih of Pai.isbn ar rbc rim6 ofbis bidll

Pr€sidcnr Pw@ MBhamf h6 bc.n chi.f of slate eirce Jue 20. 2001.

allloud h. f$l iook pow6 in the Ocroba 199 @p ud r@k on lh. ridc of

Chicf Eidtive. A prolonged coffiont lion ovd authonty bclw6 Pulieoted thc ?resid@t end.d ir D€cenber 2002 with a comprcs$e which p.ditted

!6es. of the l€gal Fln]rwolk Ordd (LrO) of 20{2, udc. &. r.ms ofwhich PBid@l Msharaf.gc€d ilat hc sill step doM Aon hi! bilil,ry

a z r. NdNi, tuittua w & 1ae 2oot

' m. sl',jj/lM\ re'naot ^.

Potitu, oattua ald tu tutu ot^. votu b, B@ ?v,a.

pos'tion a CoMnd.rin-Chief in Lre 20Or. prine Minht r ML ZatanllanKhd JMli ws lh€ Primc Ministo in Novenber 23, 2002.

Tt Palislu Co6ritution of 1973, 'lMd.d

subsaartially i! t985 udqM$amd Zia ul,Haq, was superded by the njtil,ry CoveIM@t i! Octob.r1999. It re Btorcd on Dqnbq lt, 2002, Sel@r.d prcvirions of lhcCotutiturion p.iaining to chdgc! rhat Pr€siddr MBhamf mdc whil€ the

CoBtiturion wa rNpedd.d E@in cont€st d by politi*l opponds.

Th. Preside is elected by Pelimdt for a 5-y.s im. The prine ministd iss.l@t d by the Nrdonal Assmbly for a 1Lj@ r.@ The biqnF.t petiaftnt

- or Majlt-esh@n - corsistr of fi€ Sdatc (lOO sdB; mdDcB &.indir.cdy elect d by FoviDciar alsdbliB !o *re 4_y@ teru) sd thcN.tional A$mbly (342 sq 60 seG llsd€d for ed.q I0 sls |tsw.dfor ninorities; m€nbeB cl@bd by popntd votc *rc 4-ye t€mt. Each oftLc f@ tmvi!6 - Pujab, Sid\ Nodh-w€sr Fotid, ed Bal@hisrd _ ishoded by a 8ov€mor ed prcviei.l cabine! who @ civilim appoirt d byfie chief exeurive, ftc Nonbm Alfu &d lertedlly Admiaistcrcd Trib6lAlq (FATA) aE adniiistercd by rhe fcdea,l goEm@t bur mjoyconsi.Lrbl€ autonony. The pEsidot, cabine! Ndioml S.cuiry Coucit, andgovmoB stu at ile chi.fcx@urivc\ rtiection.

The Judicid systen compris6 a Supme Coun, previncial tigh coutu, &dFcdc'd Islanic (or s!ti'a) Co!n_ Tre Suptlmc Coun is pakisrrtr,s high€sr

aurt. The pBidcnt, in .oosutbdon with rh€ chicf ex@tive, appoinb fi. ctiefJBr,c. ed tley togethd dcle@ine oderjudicial aploinmc s. E!.! pbvi@ha a ligh coun, the jBric6 of which @ .ppoini.d by the prBi.t nr anercoDfdidg with i[e chiefjustice of the Suprc@ Court ud ihe prcvincial chiefjulic.. ftc judiciary is p@ibed f.om islitrg d, ordd driry lo rh.dccisioB of rh. cbief €xc@rive.

Tle ?akistan Mslim League, (?ML Q). GML \) dd rhc pahslan p€ople\

Paity (PPP) e etioDal poliricjl pani4, wbil. rhe Muiahi.r. Mrjli*,Anar(MMA) m Mbrcl| group of six religiou parties, including rhe Jal@!!Islani - $ired signifimt innuen e duirg lhc tdr etectiotr. Orha panies witha strory @sooal, et ic or rcligioa ba* imlu.t tb. Mutrahida QaMiMovemdt (MQM), (AN?), (BNr) .1c. And the el€ctios herd in tate 2002,

the Plristari political sysr@ rtuirs higNy fi.gE@rcd wirh ,o gmup

m'ry a $bst8ltial tujoriV oI s.ak in ihc tcSislare, dd rctiSious grcup,

b,lding togethd in th. MMA ro ed . very sioifi@t poni@ of sa& for 6€

Princlpl6 of St(. Poticy

Pakjlhl s crated il fi. n@ of hld. rb. Foudq oftte N.rion, euaid-eA4m Motrmnad Ati .liDna\ had dElirtd mcquivaaUy rbst palilhnwolld ba ! ddochtic slatc b.ed on the Iltmic lrirciples ol social jutie,whicb is rcfl@r.d in the ObjccnB R6oludd of 1949.

In thc fonulation of Slate lolicy, lI€ ovdidiry cci(r.Erid withGovelm€lt is to nuinrain dmftlacy ed rslahic eilos of the nari@.1

The Sbtc of Pakistan was cr€ated on t4 Algue t947 lo provide rndiarMuliN wit[ tb.it om staic_ lalistd's sratu ws rltsr ofa Dohinion withir1ne Co@onw.alth it baafu a r€pubtic in 1956 md bn tne qoMonwc.tthin 1972. Efrorr io rejoir w.E orpdcd by India mtil l9E9 wh€n p.tistd @@agai! b@nc a tun ndb4 of rhc Cotl]mrrcdrL

IrE lst ofs.vcdl paio{Ls of mrrirt law bcge in 1958, foUowcd by rLc ruI.or li.ld Mshal Mohm.d Aylb Ktd (udl 1969) ed C.nc6t AghaMohahmd Y.Iy! Kbe (uft t9?l). Duing rle bnat tm, ditr€ltlB.'PaLb4lbuatPtonl%'

bctwed East and West Patish! carc ro a head, Civil war brcle our ir Mdhl97l and en.lcd in Deccmb€r l9?l wir! th€ @tior of Bsnglrdsh, A ndconsntution cuc itrlo fo@ oa 14 Algulr lt3, providing r f.deElpa meftsry govemn€lt MllI a prcsiddt as head of st3te ed a prine

Eini3td N hed of th. govem6t. Zul6qur Ali Bbutto bemc prime

nidsre.. Hi! govmnr w6 douAhr by rdtirioDtins ro b. not $rlficiorlylslamic. IlElc w d my 6up lcd by ca Mohmd Zia !!Haq in Juty| 9??. ZUfiqw Ali Bhu!,o E hdg.d for @cpirilg ro nurdd, His daughrq,

B.@i!, bcld powd twic. in the 1990s but w.vmtu.lly ovc.rhrcM in 1996,

whcn tle Prcsiddq Famq Leebfi, dkmised th. sovcm. for onuptioned mi@ging the aaomy.

PML 00 clccbd by a hcra Dnrsin &d sov.@d twice rbc conrlry. Or rtcss@d esion it ws roppled by GcMal tcdd Mustmf tuloving rle1999 onp. Coudnrdon was held in abeym@ sd a .prcvisiod CoturitutidOiLr No. I' s6 issucd. I! Aryur 2002, h. uilar.olly .@d.d rh.co.sl'tuton ro gtur hidslft. righr lo diselv€ pdlidetri

Gcna"t ?cocz Muhim4 Chi.f of lhc Amy SraS aslEcd rhc

rcspdibilitiq of rhc cbjcf execui've oI the coury foltowing fie Enovat oflrihe Minist r Naw Shqif on I Octobd 1999, H€ fomed a Natio.alS.cuiry Coucil @Gisting ofsix n mb6 beto.ging io ln. .m€rl forccs dda nmbd df civiliu wiih expenis. in e.ious nekk. A le.LEl Cabinet ofMinistes wa also iutall.d wo.tjng udd r!. guidlr@ of d. Nado.arS6wity Coucil. Abo fod.d @ th. Natiotr l R€o41@rion Bw€u, r thinkI!I.k previding instihltional sdvi@ dd ingut o .conosic, saiat hd

Thc adhinistrado! d4lar.d rhat it inrad€d 10 fht r6orc eonomc orddb.foF holdine g6@l .le.ri6 to iBiall a civilid govcme Tb€ SuDrcmCoun oftakistan rlloved |hc ddmilistratior a itre_yd pcriod, which cxpired

on 12 Odobc! 2002, ro acconplish rhir t!sk. El$ijons we.c held on l0Oclobd 2002. On 30 April 2002 a Gi.MdM w held in wbich 9?.?% votcd

in favou of exterding Mlehamfs tule by a tunlEr flv. y@, Tmdr wsuoud 50%. Hc doded i.\e co4rituiion in Augsl 2002 to lormlly ext od

bis nhdat !y five ,€4.

,vrrer lle Patistadi-admiaisr@d portiotr of rbe dispucd .tamu dd K,shmnEgion consists of two adrninGEadve mtitie Azad Kasl&ir ud Northh

Legd stst€n": b€s.d on

.Eo@odare PakisEDis st tus

jMsdiction. with Fsdations

Etrglish @mon law vith provisions to

a d bldic at.r!; tuccprs codpul$ry ICJ

Ex€cudve bENh: foltowing a nilirry talcover or l2 Octob€r 1999, Cbicf ofAay Siaff ed Ctrinnan of rhe Joinl Chicfs of Staff Comincc, CrlcralPeryez Mutami s!€rded tEkisrar's constitutio. sd asNmed rhe

additioul title olchief ErMtivc; oo 12 May 2000, palistaDk Suplae Coun

'!@imouly validar€d rLc Ocrober 1999 coup od gdtcd Ml]3har.f e&@rive

md legislative lurhority for tbr€e ycd 6bn the 6up dat€; on 20 Ju€ 2001,Mub.rr.f ndcd biGelf d pcidcor ard w soD ir, rcptacilg Mohdn adRafiq Taar h a r€feendum held on 30 April 2002. Muhamfs pr€sid€ncy wdcxtctrdld by 6vc mrc y6 @ t. Jdurry 2004, MEha@I won vol. ofconfiderce in tbe Semre.

N.rio..l A$cobly d lourprcvtmt.r A3*nbu.rPr$iddt c@cal P.frcz Mcb@f (sine 20 J6e 2o0l )Plimc Minist€r Shartor Aziz Gincc 2E Angur 2004)

CabiM appointcd by the princ Minisrer

.. h ry ; /A{* ch.so | /.t4h/u i. d t d.,9. boa hb tut b r hh 1.

t/4rba: Sture - tasr hetd ir Mdh 2006 (ftxr ro bc hcld i! M4h 2009);

Narional Asscmbly - last h.ld r o ocrobc. 2002 (rdt ro be hcld in 2004.

El@non /.r,1$ S@tc rcsults . !€rccnr of vote by pdty - NA s.ats by pety -PML 47, PPP 9, MMA 20, MQM/A 5, pMrrN 4, ?MLf I, ptMAp 3, ANp 2,

rP? 3, JWP 1, BN?-A*!r!i t, BNI-Mdgal l, BN?/H l, indcpdd€nts l:Natio@l Ass€mbly resllr! pftenr of vot6 by party - NAi s4b by p.rty _

PMUQ 126, ppp 81, MMA 63, pMt"/N t9, MQWA 17, NL 16 pMr"/F 5,

PMI./J 3, ?PT/S 2, BNP I, JWP I, PAT I, ?MUZ 1, PTI I, MQM,II I.PkMAP I, indepe(bnts 3.

tudicirl brrncn: Supr.fu Coun (ju!ii@s rlpoitrr.d by tbe pcaid.nt); F€dc6l

Politi..l pres.un grcup3 !d l..dc.e: oitilty t!fuitu mst iDporrldrpolitical force; d@ (clerSy), lddown€s, indurlialist , md shAlt ncrcL! s

L%rl lfttihtiols of PrKsreJ$ttc.: Thc rederal Judiciay @Bisi ofde Suprche Coun of p*ist 4 wnichis a coun of rcmrd ed [4 rbre-fotd jujsdicriod; ongilrl, rppelar. &dldvisry. Thft aE fou Hig! Couns in Lahorc, pBhaM, eEtri ed K!@hi.Undd thc CoGrituti@, @t Is lowd lo issE dtotios of Mib of IlareqCo,pa, Ma"dana, Ce,riorud od odcF. Undd Ud e disrdd a&l sdsionscoDns of fiBt iBrarce ir @h disbict they have also lome appellarcjuGdiction. Criniral *d not bcing sior'! cls e hi..l by judicialmgislral*. Thft !E subordie0e civit cours abo,

Tlc Consdtution prcvidc for d idcpoddtjudiciary, s thc Ircardt sd€gurdof citi@' rig!$. ft@ is e Atloo.y-ctunl appoitrr.d by d. pr6id.nt,h* nght of audi6@ in att couns md rhc pdlimh! od a Fedcral

A Fedenl Sh&iat Coun at Oe High Coun lw.l has b€en catabtishcd to de.ide

whethcr ay law is wbolly or paniauy D-rsl@ic. In AtgBt l99q .pEsidatial ordi@ce d4leed tbir the €rimiut code nusr conlom ro Istuiclaw (Shariah), dd in May 1991 parlidenr p$s€d a law in@rpoEridg it ilro

G.veom.na stru.t!..Palisle's iodcpcnd@ce wd won ihbugh . dm@6tic ed consrituti@al

struggl.. Ahough tt @urys @od with pntimiiry deMcy ha beomix.d, Paldsra., aftd laps.s, has @tumed to lhis fm of govctul. Tl|coctituti@ ofthc IsLftic Rapublic ofprt bra, adopred in 1985 pbvid6 for a

fcd.ral pulimdlrry sysrh yitb a

'trsid@ls had ofsEre ed a popddly

elsred prin€ ninisler s head of sovemd! B6idca pEsident, princ

Minis@., S@rc ed AsDbtie orh.r oft6 dd bodi6 [avilg irportarrrcl$ in the fed.6l strnct!rc inctude the anc,mey g€ncr.l 1he audird gerent,rhe Fcdcal tad Comissio4 th. Fctlehl pubuc Sdie Comilsioq rhccdral Et4rior Comjsion, ed th. Wa&qi Mohiasib (Ombu.rshs).

P@virclrl cov.mD€ltsPakist!!'s fou provinces enjoy mBidmble autonomy, E.ch prcvince hls ssov.md, . Coucil of Miaistd ladcd by a chicf miahrd aplohr.<t by O.govdor, dd a pmvi@ial .$.mbty. Memb.r ofrhe povircial assmbti* arcelsled by Eivdsll oddt suftlge. p.ovi&id llsmbtie ,lso t.w !!sd.dseaG for njroriii€s. Alrholgh lh.rc h s wel-dcfined divisio! ofrcsponsibilities bctweeD f.deEt dd prcvircid soveiM@6, u.E e sbcfndbd on whicn boih ce onk l.s and aEbtist d.!d@cnt9 rir rh.i.qecuiion. Most of tbc seryicA in ares sD! s health. cducanon, agdcdhr,dd roAdr, for.eple, @ previded by rlc ptuvincjal govelM@ls Alrholghthe fcdcrd govdedr car al$ teehld. in thcac @s! it only nar.s mnorat

Tle judicidy ircludG thc Snp@. Cour! previncial high court! dd othrl€ser couts ex€rcising civil md $ininrljuisdicrion. Th. chicfjurice of rhe

suprde Court js appoinred by Uc prcsiden! thc orld Suprcnc Counjudgse rppointcd by rh. pr.sidor .ftd conluua[otr wirh the chiefjutice. ,I!e

cLicrjusticc dd jndsB of l!. Sup&me Cowt tuy t€mi! in offic€ utit age

sixty-fiv.. Tle SuFlDe Coun I's origiMl, app.llat , dd adviloryjuisdiction. JndsB of the pmvirci.t bid cours .E aploiir€d by $e pBid€nr

aftd coNultatioD witii the cbiefjusrice of rhc Suptu Courq 6 well s the

covdor of 6. lrovin4 od rhe cbicfjNricc of tbe high court lo which rh.appointln nt is b.ing made. Hi8h conrB hlvc ongi!.t drt App.llate

'ft* is abo a F.&61 shdar Court coEtuIDg of eiCt Muslin j!dg.e,including 6 chj€f jutice appoi ed by the lrcsidcnt, Ttree of the judges eurem& th.t ii Islmic Schobq &d @ w.U vas€d ir Isldic law, TLe

F€dml Sh&iat Clud ba3 origiel od appellaL juisdictid. Ilis 6ua d6id6whethd ,ny law t Fpug@t to ite iljuciioru of Islan. wle , lav i!d€.med rcpug@t ro Islaro, iL. pBidm! iD llc ce of . fcd.Bl t w, or rb.gd€mor, in the s$ of . p@inciJ law, is cheSed sith bkirg sr@s lo bringthe llw into codooity with the bjuctions of lslm Tte coun lbo hc$aDp€ds ftoh d@isioit of diEiMl @urrs udd laws rctsrilA ro rbe

@iorced.lt of hudood taws tbar is, las !.nainirg ro such otr@Fs {sintonedon, tbeft, ad unla*{ul sexusl brwoba

ln addiiion, th@ e sF.iat @ul3 ed trib@b to det with lFcific ki ts ofcass, s4h as drug courts, comdcial coutu, labor couts, traffic courb, ein5lttmc appelab idb@t s income tax appe ar. rriblrat, dd speial@urts fo bant offeGs. Thft ec ltso s?eial colrts to F, r.mrisb, ApF.ls

' tu &atut y@,+et, k pdnial, c!!tu o,n z.own oJ

^. pog b, ,q nw,

nom spdidl dutu go ro high courls .xcepr for lalor sd lrafic codrs, wbictbave $cn oM folls for aplEal. Appals fton thc tribu.ls eo to ihe

A tultlr fel'e of rh. judicial s'sb.n is the ofrc. ot Wafaqi Mohta.ib(Ombub@), whjcn is prcvided for in ih. con6iitutio._ The ot[@ ofMohtrsib @ dllblisbed in lfuy drly Mulim stat6 ro @e thar m wngswde don. to ciiiz . Appoinr€d by the peid.nt, rhc Molrasib holds ofiicefor lou. y@; thc tem ctuot bc extcnd.d or r.!.*ed. Th. Mohiadb,spupose C to ilstitutiooalize a sysrem for @foEirg adoidsr.aiivedmutlbiliry, l!rcush invcstigarine dd rrifyine ey injNri@ do& to !peM! thrclgh @ladninisratio. by a fcdcnt sgocy or a f.d@t goymtomcial. The Mohtasib is empoqqcd io award conposarion to rhosc vho bav.sufrd.d 16 or dMagc s a quh of ml.ddilisFarior Exctud.d AolrjuisdictioA how.ve., N personal gddmcs or senicc mtte$ of a publi.sflet a w€ll d tui&E Elaring o forcign !fraiB, Mrion l dcf.Nq ed rhcmed sNies. TLis ilstirution is d6ig!.d ro bridg€ rle gap betwcen

adDinistntor ed citizo, to iqbve adnhjleative !.oc€ss dd Deedua.od 10 bclp cub nkse ofdisderioaary po*c.s.

l) T[eF is a Provilcial Ashbly fo. e.jhnumb€r of menbel3 h€rnuiicr spdified to

vot in @od@@ virh bw.

Norl!-West Fmntier Pbvinc.

Povince @tuisring of the

be el4ted by diMt bd ftee

240

t00

80

(2) A pe6o! shaU b€ cnrirted lo vot€ ii(a) s.r'She is a citikn ofpakisrani

(b) Eclshe is nor le$ tban rw@ty{n€ y6 orasc;

(c) Hi&ard l'.@ apFs otr rh. .lato6l rcll fo. dy aq b rh.

Prcvincq dd(d) IL/She is nor declar.d by a comp.r.nr cou.t to br of ueDd

In .dditid to rhc srs in th. Prcviftial Aschbtid fo. the provitB ofBalehistan, thc Pujab, thc Norlh-Wcsr lMtid dd Sind speified in daw(1), thqe sLll b. in tho& ssdblica i!€ trMb.r otsars hfriDalicr speficd

5

2

No indep€nd61 sat b allo@led to a ninority in a povince for b.ing vdysE ll i! nubd, &. sr !U@r.d joindy ro .I otfi noFMBtitrls in rhalPrcvirce slEll bc den d to irchdc inat minority,

rofici.s of cthi@t pdrrics aE abo ar@tb€ fic coutry's poliridl situarionrolti@l isrability h lal.isbn 6p€cialty i! BalEbisk! is wid.ly lff€ctirg thepoliricd siurion h latisciA wtitc in Indh od Ssudi Anbi! r[@ i! tro suct

CHAPTER-4

FII'E YEAR PLANS OF KINCDOM OF SATJDI ARABIA5O

In this paft ofsrudy, Iw bneAyaralyre nv. y@ ples ofbor[ 6e coDr.ia.which wodd @blc us to comtec d&t situtiotr of bolh fle coutries, th.irpl4, btal ouday, their budgets, Ilairjrg ilvcstmcnt, pupolirio., cDP,p@jdts, lul d.v.lopodt trade lg@nmrs rnd joint vdrus etc.

Saudi Aiabia has ! stlble econohy ,nd pe@t sow€ of incoDe (as oit ri.hcouty) vnich @bl6 t[€ pla@6 of fire ]q prd b id.nri8 6hltioro ofMjor figUB of cxpon ud imlDn, r stabt. @&Ey, @tionil slllitiry ed

mile in ?akiste, th. fiv. y€d platu do @r naBsily giv. rhe et rcsult! ofplmc6- Thb 6 bc Etar.d b the polidet insr.bility wnnin tbc couEy 6d

Frcqudi cheses in the coveimenr chsscs its budScl. Whil. iNtaibitty oftr)c rcgion, eud Pakjsr4 thrc.1cn its mtiooal !t biliry lae .nddcv€lonpdot dc od afr4ts ilt m@t budgds dd fiv. ,@ ptq!, wbicb

ir nm rBulrs in lailur. of forcdled vision td thtu co@Ey,

SNdi Carcnda Srarts lion llijh, th. lle yd of34j days. Tle fnr y.r ofrhjs @l@dd n 0t yd in wbich Popher Muh2dEd, pq@ be upo! hin,.mignr€d fto@ Malkah to Madinr! 6d coRspond, ro 622 A.D_

Th. followins .ablc is a quick Efermce fo. HijB ti$al y6 ddmGFdil8 Crc8ode caLndd:

" /.h44t oI D4topnn pbgro1' ad reB fi. h,r.t ttolH^a, uk,tu, al

Yed (IxJn)1406 t4t7 May r8,1996t407 l4l8 M^y 1,19971408 Aut$i25, t98? l4t9 April 2?, 1981409 Augusr ll, 1988 1424 April17,1999l4l0 Aug!$ 2, 1988 t42l AFil06,2000l4It July 23, 1990 t422 MNb 26,200114t2 July 12, 191 t423 Mmb IJ,2002l4l3 July I,199 t424 Meqh 4,2003t4t4 Jw2l, l9l t425l4l5 J@ 10, 194 1426 Feboary 10,2005l4l6 May 30, 195

FourlhPh. 010sr.09)1405 I985 t405/05 1985/861406 t986 t406t07 19861401 r987 1407t08 19871rO8 l98E l,lo8/09 I9EE1409 r989 1409/!0 t989

Flllb Plu ( 410-r4lt1410 1990 r4tc/ll 1990l41l l99l t4lvt2 t99lt4t2 t992 Mtatt 199214t4 193 14t3/t4 1993l4t5 1994 t4t4 5 1994

Slxt[ Plrtr ( arGr420)1416 1995 t4l5/|6 199514r'l t996 t4t6/t1 1996l4l8 t997 l4l7A8 197t419 1998 l4l8/l9 1998t420 199 r4t9t20 t999

Sd.nah Plm r42r-ra2tt42l 2000 t42Utl 2000t422 2001 t42v\2 2001t421 2002 t42Ut3 2002t424 _2003 1423/L4 2003t425 2004 1424^5 2@4

l. Srldi Anbl.'s Fout0 Da.lopn.nt Plrb (1409)5, r49,r4l0) i.e

0985 - 1989) witd*cd a $bsr6ri.l decline in oil Fmu6 otr '@ut oflowd oil priccs in thc globdl @k t. Thh w$ r!fldred in th6 chrir d€clletu total govcmnt s!€!di!g of tL sar budg.t shft rotal govrumtspodidg stood ar sR 779.3 billi@ isr.ad of thc oladed Momt of sR l0o0

6illim. 'lXe inp.cr oftht dcclin ws &llccr.d in CDp grcr'th nr.s who€ the

rcal avedge gro*t 6ic was ar conslart priccs duing the pla! lsiod @c!ed0.7 leMnt ody. Nonctheless, dcvclopn€nt €fforts w.rc capable ot@ntinning

to qtedd $plort to lbe di{fcEni cmnomic secro$, fo€mst ofr[ich B the

agric'tnEl s41o. which lealized high grof,th d6 nlat rcachd 13.4 p@mr

4 dul avmgc. Lil.wGc, lh. Pls indicatG thlt D.Eochmical in&sEi6s@tor nade a sub$altial ldp .t a av@g. dul grc*rh ato of47.3 p€rcdrPublic utilitics @liz.d e avcdgc Mual grewth atc of 5.9 !@!t wbile ttcoil ed @rul ga s.do. mlizcd an lvcngc anrurl gowil 6re of 4.4 peM!1

duing rlc Folrth plan p.riod

'nre Foutb Dflclopn€nr PLn focurcd on a new sFaicgic diredotr .iDed at

incrashg th. rzlu Edd€d by rh. oillnd natud gs std. At the tiEe it bad

rlso b{om evid€ rtlt it w.3 ncccssary ro @cotrare otr p.tehdiolirduitia which .ajoy coEpaFtivc advdtag. @d high Elue rdd€d.

Acmrdingly, priority wB giv.n to pctroch.niql indusr.is ad rhe

inv*hmls 10 develop tb.s indurtics wc€ Md. available. Th€ lourth pl6n

also witiesed pGitive indicaros $ epr$ent d in in e.sjrg rhe Eal av@ge

muar grosth rale of non{il .xpodr, which m!. fro6 I8.0 pdcdt duing rhe

Thild Developlml ?le to 29.3 p@cni duinS rh. Fourh Developmnr ?la,aAainsr a ded€aF in inporl! rha 6t of ?,8 pcr€.nl s o mul avdgeovd ile louth Ddclopmclt Ple. Duirg tbt pdiod donesric lroductionim'€ad 6pai.]ly a Eg.rds col)smptioi !!d lericuhnl co@odiris sdthe drc of replacddl of ie?dl of thdc @moditid .le incMe<L On incotha hod, thc priEL serq's sbrrc of roLt irvGt&dts ir@sed ioco4tilure abdr 54.9 p.. anl duing rhc Folnh Dcv€topndt platr,nl

MoMl.d to SR 239.2 billion al conltrnt prices,

2. SNdt Ar.bir's Fiftt DevctoDmdt pt.o t4t0/U{al4lt5 (199G

r994J

Duidg tb. ple tbc cDP mlizcd a c5t .vd8. mual 8rewlh ot4,4 p.e@!od trc private sdbr ralized d avenge mual gw,tn of 2.1 p@D! the

growtn 6tc th. govemdl secto. incrcsed by 2.9 pdcoi whilc th. oil sector

inoas€d by 9,7 p€I@r T bc increase in grcs1h is arhibund lo rhc lotiMbleinc!!& in oil pdu6 duing rh6c ycs.

Thc total vrluc of priEt invcsErqrr ccr.rt pries @out.d io SR 283

biUion i.e, at a rcal av€nge mut growrh Bte of 5.9 pdcdr *hilc Sovmmeinv€sirnent! lmouled ro SR 178.8 billion. A! fft ih. valu€ of rotal govmrspoding, aoourcd to SR 1020.5 bi ion due 10 in!rcvencnt in oil r€veN*.Duing thc ple p€riod th€ batse of radc Eliat a su.ptu of eoDd 15.6

In g6eral, acoal speding on d.v.lopment agdci€s GecbB) duing ite fi$tfive d.vcloprnc plans r€fl€cts rhe shre's k@mss to contimc prcviding O€qp@ditw required for development i. its majo. setors. I! thir respar,govemcrr spddrg at cllMt pdc6 jmped EDn SR 34_ I biUion in rhe FiBlD.vclopment Pl& ro SR 34?.2 billion in rhe S@nd D.v.lopmdr plar a4lwa .bout doubled ro SR 625.2 bitlion in rhc Third Daeloph.nl pld to merthc incr.adng rcquiremeds of developmot al a ldge scat.. How*.r, llcvalue or actual eo]/fut spendirs relatively deEard ro SR 348.9 billiondlring O. Folrth Develolhenr plm and to SR 340,9 billion dwing i!€ Fiffn

ll is noticed rbat a rw lhe i! pregB dd dewlopmdr h4s strdcd yfth ihe

inpleEent lion of the lifth Developmdt pla! l4l0/ll-1414/15 (t990-1994).

The obj@iir.s of that plm c@ccnrur.d on mod(m r€quirm.nG fomost of

which w€d rcceldating the d€vclopm.nt of $idce dd tahnolosy, inprcvine

lle qrdity of prcdnctioA nisiig ihc cfficidcy perf@ of istitulid,bolstding competitiv€nes cotrc@tEtirg on ch.ng,ng ihc e6djc sEucnue!

dit@iryilt G@odic adivirie! ahbltutirA orgeizlti@.I dclctop|mqMinrlililg tbc edLrc and quality of lif. ofd. wi.ry, plying inrcnsir @lo dvire@ntal standards ed to tlc rcSuirendb of &qing r safe

mvnom.nt, &d Ealizilg balanccd Egionsl developnoi, tte Fifth

D€velopn nt !16 paid att€rtior to rhc dw.lollMt of prcductile scctG,

baic indutrics, patr6teniols irdBFy,.gri@lbrar dd agcindnry figured

prcDinddy. Mo@vo, g@tcr atr.nriotr wd giM ro thc rolc of rte p.ivare

sbr in incr@ing tlc rclm. of i!v6md!, dd dpdrding l!. prcductiE

epaciry of |h. Kingdon.

3. S.dl Ambtt's Siith D€v€lopm.nt Plrn 141G1420 (t99tr999)51

The str.Egic dnedG of rlc Plu focu.d d dcvelopnelt of ll|lfucom4 &d iD!rcvddr of rh. livbg st nd.rd of ciriztr. AciatepeDdituE on d*lopn@r sbrs mourcd to SR 4203 bitlion of which SR

216.6 billion wcte spmt m devclopMl of hllt@ resouces, !€prcmting 51.5

lercent oftotal cxp€nditue. Thc Pln also mintained the sr.bilily of coruUmrpricd ed iI€ value ofthe national curcncy whicu ha bdn a uniqu! fdnft ofthc Kinedom ovcr the pasl teo d{ad6. lnflatio! nre avcng€d t.2 prcdt per

y@, {bich is a low Et rhnr Eflccrs rhc g6eEl st@i. 3tlbitiry of rn.Kingdon, Th. Pla! also .olcdrracd on rlc srraregic dir..tioo dn d al

incEaing ile contibution of nor{il seto6 d a she of CD?. This sbftrce tom 5l.l pftmr of cDP i. !969, at coNlalr prics of 141920 0999) to

doud 69,7 p.rcol il 141920 (1999) by the md ollhe Swcntb Dev€lopmdr

Ph4 it @h.d 70.6 p.l@t It is to b. noti.€d that rlc ldl y.3r of the S€vdth

Developmnt !l& witn6$d ibgorlalr d@eloprcats Elrbd ro globol oil

nark t rld pdc6. oD ln. othd b64 pdv{. seto. iov6tlEna 9!w dui!8

" k ttuht at D.ydbp\at pto '/Ffb

.d ftPru e/' htu4 Ql|otoo, tnkery dfDc@ry 6d Pbne. bsdeotedt lnhb

the S'xth Dcvcloln@t Ud al ul avesg. mul ntc of abolt 9_3 lercutwbil. rhis Bte @ch.d 3.5 p@trt duing rhe poiod of rtc Sd6lnDevelopn@t Pld. covcmmt crpcnditurc dvdged about 2_3 p.enr pdyd duitrg th. Siirh DcvclopMr Pte ald @hcd 9.2 pelwr ovq r[.penod ofthe Swmlh Dcvetopnent pld. It's to be indicat€d, at rhis point, rhar

the imprcvenrcrt i! oil Gv6Es in t424D5 Qtnq hehed io inft!&govc@t spcndi4 ro eud SR 285.2 biuiotr i.e. rh. cquiwlc of 72.7pqcol ofthc rcalidd toral rdmues.

Sevdl ofthe d.velopenlal sEatcgic obj4riv.s wd€ rcalizod duing $e plan,

a a E$11 of inc@ in ddelopnor dicnlcd aovclmot exFDdirrc. TttdS.rcd gov.mot 10lal .lcv€lopd.nt cxFtrdirue duitrg rh. ptan mowr€dto sR 488.2 billim of which sR 276.9 billion m alroqtcd fo. hulMcoes ddelopmedt i.., ar rhc 6i. of 56.? p.Iuq SR 95.8 bittion, or 19,6p€tccnt, for social and hcalth ddelopm.nr. SR 73,8 billion, or t 5. t p@6!, foriDfashuctu., SR 4l.? biltio! for eo,omic Bou@ devclolDdq ar tbe dcof 8.5 t€tqt. Ac@rditrgly, ihc lotal r.rg.rcd e4eqditurc on ddllopncnls4roB rose ar ihe late of about 16.l pdcdt of lle actuat qpe&lirt€ @.lcvelopmd s@!o6 duilg tnc Sirrh Dwelopnd ptd_

FII'E YEAR PI- NS OF ISINMIC REPTJBIIC OF PAKISTAN

Prllrt r,s Slrth Five y.rr ptu 1983-88

P6!1. of lElisr.d bavc b<a stoIely sctfeiric.l &d quicl io $gg6tcore.t'm in polici6. ?ossibly rhc resdls would have beco muh b.t!e., if rh.@l@ of dw.lopndr *Ei tuoE sm@dr .rd batdclil Nw.ritcle! rt.nat'on cm find rmc etisfaction in tbe ovcFl eo.d of !rcgr.$ for th.

High grow6 pdio& dc a$@i.ted

@Btrlctiv. parrr.rsbip bctwen rh.

wiih .nphasis on agri€uthe and spubli. dd lhc priv*c sloF_ Soud

c@mmic policics and .6ci.nt odagmcnt oflew* e l[. key ilput3 for

sl4dy qlesim in tne e@ony, together wirh e@onic @d polilic.l

Mljor faile of thc d.v.lopne pro..ss, in Frrospe! hr! ben in rhc cbitiry

and detadi@rion to psue m .fl6dve popllation policy

Dn.lopmot Str.t.g/ of rbe Sitrt PtrrTh. Sixth Plan ains at Fpid rd cquihble dd.lopm.nt of rhe couEy, The

b6.fit3 of s.osr! must be widely shard by thc p.oplc.

Thc Pkr i5 bad on tlc folloyhg min pMis6:(a) h is rccessary to conbh. a str@g pndetion be!. wilb u .qraly

sirong social cotuci€nc..

(b) Rapid @ononic grofil is crucill for ?akilrrr's tuo&; wilhour it we

@ ody Edisiiibur. pov.rry. Brt @n.nic govt is a nc.6s&y, ro a

s6ciat @nditid for cbagbg rbc .bily liv.s of lh. !@ple.

{c) Il'c Pld, provida not only for a s@.ral asricultual adtuce but for

smll hm productiouj noi o.ly for a general agriculrnl adv0nc. but

for sbrll &m producrioq noi onty for ovdl indBtiial grcwrh but f6small ad mcdiM i&luni.s $ well; tror only for pregr63 in g@@l

b !rct@tion for the @t wln@ble goups in soci.ty.

Thc Ple is eprcss.d lot so nrch i! absraci aggrcgaca s iD logtitl||c ofd.v.lopn@r for v&iou s6tos, rcgioN ad acli@ of sictr .or s nMtir t ms of GNI grenth nte dd saving md invcsimcnr targ.ts s in iem ofb.n.fits 10 the ordi@y p€ople.

The basic freNo* of the us 6 bc sumized fairly simply:

Itr bdic app.oach is to help the poor emcqe ton theh poyefy, lrs

policies wolld cmbl€ thm to ed or obtain the r@$iri.s of MFnuEition, Ibusing, water and Mitario4 ed *peialy cd@tion ddh€alth ed lhB to ilcrcasc lhen prcdnctivity md to establish equdity

of opportmity, lts rel inpet wiu b€ relleGd in rhe happines ofa@l ftuily whoF hme is suddenry bncbd.d by elerriciiy- Ii will b.

minoied in thc fac.s oflhosc childro who for o&e get d oppo.nniy

to lcad a h.althy ed €dusred lif.. lt wiu b. exprcsed in tho relief oI a

dbpl. fa@ who !o lonSq bs ro bdd dom ro drid. pollubd w.rcr

fion a diny pond. lt wi! b. m€al@d by th. n Eva.d ofd td6t

Its mjd reliaa is or libeBtion ofde c@nve sdgics old. !€oplc.T!. Plan is coneiv.d eirhin rhe fiinewo* ot s sigDitreld@8llatiotr of qbtilg {onomic colFob ed Eaulatio!6 so 6 ro ficc

thc 4dgi6 of privlte individral5 ud orgmizcd s61o.s !o patticip.i!

tully in @@omic drElopn ntTlte chief bocfici&iB Aom pltu€d d.vclopmar will bc lrF majdiryof ihe populaiion. This will h€ eNrd rhrcugh a nationd ircme tu.t

emplolrdt policy. hpid str@d of public s.pic6 lo Mr .l@ oaccelmte tldr devclopn€4 gF&. str.ss o[ iDtegFrcd prcga@Bfor wo@t ddelopnenr aod extedior of soci.l safety netr to tlepeEt od mst wln@ble 8loups i! s@icty.

lhis ch.p!* afiempL! ro illubard th€ pBctical st p6 rbrowb which th€ Sixth

Plar iranslat4 th. abovc g.rcsl principl€ into concEle plurrm6.

A grovth nte in gross dobesric prcduclion of 6,5 pd col a )€ar is ptmed for

lhe @rt five y6. Thk will b. prcvided for th€ pDj4red grcM! i! popuhtior

' l.q.dwfl of D*,|owd PkeFod, od F,*ts el htu t tle7L2^atr M,r,, of

es w€U as allow for u impmven€nt ofabou120 per cenl iD fmily imomes inrcal t€@ ovd thc Plo Friod. Sirc. rh. CrcEl! stratcp of rhe plu is b€!.d

on r @jd bohhrcugh tu asriculnnl pro<ludio., p6rti@ldly on snar fam,and si@ a v!ry sdioB aneopls b b.ing @d€ to @mbin. rtis gorlh st at€&,

with atr .ctiv€ ircone md erploldcnl polic, it ce bc connd€ndy exp.crcd

thar lhis grewih will b. aenly disiribut.4 wiih & visible impmvdot h rhe

lir€s of t[e p@cr p.ople.

Tbc grc*1h stBt gy for th. Sixrh Pld Eli6 o! a combiMtion of polici.s,

- a najor iftme itr sgricult&l yietds $sug! moe eEcidt u! offqtiliz.r, wlrcr ad &n tehtulo$';

- d e4.!dhg fmdold in cxpon hart€E fo. whcat dd rie s wcl a3

for &uits, vcgcgllcs, Aoww, poultry dd mear;

- jncreded $lf-sulEci@y in oilseds;

- Epid dcvclopmar of si.et-bar.d mginding goodt moddiz.tio! oft.xnb indlsrty ud 4tabtilhm6t of agGildu!tris fd pro.*i!gagricuhEl lurpludt md

- a bdeed dcvelolnat of se.vi@ bdutrics, Fdc dly prDlic

sme b ef6& basic htlm '.€ds. Dc.ril€d mtio,rl ir6nc

a@uts and physical larg€rs m givd in rLc Sads$€l protrL.

Howad, rhe Snlh Ph dB lot dcp6d o! rh€ favoMbl. .f@rs of@nonic

8m h al@e- It trckl6 poveny diEctty. Ttd mio iDjrudt ir tbc Bpid3prcad of public sdica to all s@lioG of sociery, panicutdly edueiio! sdhealh which de lhc basic idgedi€nts for hmb resoucc dftldpDent and ror

cqul panicipatioD in 4ononic lifc. Tabl€ slllr]rMis the inprov€n nr

cxpeted h thc qulity of lifc ildiq ovd tbe SixrL pte paiod. Ar o bc

s*n &om this labl., ihc Sixth Ptd ritu al a d,r@tic ch6gc in lirrey l.v.ls,accqs !o potable wster ed sew€ngc f&ilirics, sprcad ofbercffrs ofclcctricity

ed inprcvcn nt in h..lth i!dicc!. A[ lhcs ibDrowrcnE e ba!.d moncrde pmgtllffi for whicb ndBsary .ll@tioB r6vc b.€n Dadc. Ttesb@ of public aetor s@id r!.v.lopnEnr pmgllm* has b.d in@!€d fmE

9.9 pd ce in rhe lifth Ple to about l4-3 p.r car in thc Sixth Pld; inatfolute id$. thft is . qudnn jM! of.tout thr! ril6 i! tb6.

l96Ml ua2{! l98r-83

4.8t5.0

13,923.5

32.748.0

2.- nub.. tuuc<t (nillion)

- Pa6l4. of FDffy rg.

1,6

30

II

6.8

6332

t2,t7,7

90

Thc principal instrm.nt for d{.lopmdr in rhc Sinh pte sil !6 lhc cMriv€.!.rgi6 of lb. prirdc a6rol Ths. dcrgi.$ wil b. libcnr.d lbro!8! a@nbiEli@ of prcglrltll:B, sucb 4:- Iaw wil be a@clerated d.vclo!tued of hlll@ ..som4 potatial

tlmugh. fivefold im:t4 in tbc oq@dinle on cdu@tion &d h..tiLSnfici.nt mpiric.l *idtrce b now aqitablc ro sggcst ilrr.du6tidon ed he5lth scrvicB on€! ML a grcatq contributi@ lo impreve

blou producliyity rt a d,o mosl !tt6!.rivc invesda s.

Th. Sixth lla! aim at a qebm tap in iechnolog dcvelopdor snd

las .ea*ed abour fou ric s n@h cxFldiftE fq si6.c ddr€cbrolos| in th. Sixth Ple as in the tifrll lais wiU mble rhc peplelo pa.ticiprte EoF tully ir eor@ic lifc d rhc b6is of bdigdoNrechtolo5, and indigmN .lldis.

Tt E will be a mslik d.Egulation of ihc @nony ro disFM wirb

disdeiionary adminhtratiye conrlb ed ro rcplacc thm wirh a policy

frdework tbar preters both Drivar€ ilitiative dd sial inEr$B.

Th. Sixth ?lr! fmework wd bs.d on a new conpacl betwen public ddpnvltc s@tor. Policie of c@isrclcc od @p@tid wiu b. @ged in

aI &ctds of th. .co@ny - wh€ln.r in indury or in agiculrN, @Dstruction,

eduotio4 h.alth, snices, Flde or ey oth{ tEld - ed r rdiou elIort @dcto Emv. tlc pdiN diasmien betw@ th* rwo scr6. Thc pnblic

eclor will qs.ntialy play ihe Dle ofa @talysr, It wil crcate ib€ pbytsial odhll|@ biarrucftft tblr is nceded for p.iBtc initiltiE ro @ldiilizc. Ir eiualso rcsere rh. righr to .ntd s & invdtor of lasr rc@n whftv4 private

s.ctor tu hesii! lo @mc iD b@uc of th€ ls.Ce sia of m jnvairh.nt, o.n.w tebloloAJ,, or mcrtain n rt B. Thc diEctly pbdErirc erivirid anrt

senic.s rill be resned alncr qcluively for Oe lrivar. ector, boih inag.icultDE and in indusrry. kivare irid.tjE ws at$ @@g€d i! prcvidilephysical i.ianuciuc in Nsciation wil! pubtic s@ror - sucb as, iD tb.costncton of highways, airIEn tcmiuls, dd$, dcvetopDo! aql&lcphon sedic.sa wcll s in .du€rion. batlb &il orhcr sid s.ryi6.Th€E Mu be a !igDi[6t lord-sledding of govemenfs fihcial buden! so

4 to mobitizc priwe fllfuilg od lo cnabte rhc gov{)@ar lo @@rraG o!lbos. nndiotu wnich n abne cm p.rfom. Ior insrdcc, ln€ sle ofpublicsror indatri.s w prcjccred io dcline b 6,7 p€r ceirt in rLe sixtb n rpublic s@lor dcvclopmerr pmg@c conpar€d lo t6.6 De. @r in lhc Fift

Borh public !!d priwt€ s@roB wilt h.ve ro Lm ro liv€ togel[a i! . spint ofcmpchtiotr wiilin rhe ft&twort of brcadcr Mtio.al iniftsrs. Ihe pnblicsror will bc .eougcd ro led fon th. dyEDis of l[. Fivar. wroiAnd ihe priv.t sclor will be uscd lo eDbFc€ lle social conscicn e thepublic sror nul havc, h m6t seioc ofrbe eonony, ir js pltu.d tbar borh

public ud priwre sdtoB sbal compete ar pd s wetl d establish joilteDlerDriss whercvd fesible.

hivat€ investndt ir p.oj.cr€d 10 in@c al oE twic€ rh€ nle of public

Ev*toent b indshi4, 85 per.cnl of the ncw inveshcnt is eipected &om

lriv.tc seto. by r[..!d ofrh. Sixth pte pdiod 6 agajmr 24 pd @r ai tbe

begimjng of lh. Filth Pld. Opedrioml polici$ e being dcaigned lo !trovidethc nd6sary foEigD crcbrnge rcsol|le dd domeric crnit to r.lia rhis

@jof sbili ir th. invesh.nt rcLs ofprblic dd p.ivate sdroB.

Whilc a mjo. Uh.Etio! of r[. privde sror is @trr.bptarcd h rhc Sixrh pte,

loliciq de .lso bcing fomulated to osft ih!l:- S.cid int€rb do @r b€.oh. a @lty in dy seh lib.EliatioD

thiv.. For iBrec, sleial crc<tir pro8r"M for sal Amd mdsrEll ild$irialisr! bsve been d€siened to @sw that tbe stult investoris finly prcl@tcd ald oougcd 6r[d th& wip.d of by tlE rltorlNfones oftbe mdkct,

lriElc htq n!$ b@a. morc etrcidcy{o@iots and conpcririventhd than coqtinuc lwiving wilhin a higbly pror€cted ald shetMEd

mttet, The ptufit3 of pdvilcgcd accass ro s@c Bomes q xceD6orFmi|s mul b. Gpln@d by prcfii5 of .ffici@y dd o€w t cbnology.The !.ivde *ctor lhould b. frce to live by the logic of i@ tuk€r slory a it is prcpsr.d ro die by rbe togic of the Mt r &d 06 not mto in. gove@nt fd rcsuc cach rio. a pnuG enkQrise ge1s inrotroublc or b.cohcs cob@ialty sicL

Tne eovc']1l@t sstor will ircr€Ningly play a prooori@I, urher tnea @gurarory rcL. Ir ril 6co@ge uc inroduction of n* &.b&togydd cflicidt pactic.s by srr..mlidng rhc pri€e ed fsal signab given

Tle Sixth tld sl$ l.id @Bidcnble dphsis on the role of rlbliccorpohtios in capilal fom$ol Public orloFtoB de beirg s@Msed bcxpdd rh.ir ilvdrrnml our of thck om pretirs dd efficicncy. Thc roral

progm.s for th$e @Donrim w.E prcjcctld at Rs 65 billion in the SixtbPld which will coGrirur. & iIIIesc of I t 7 !.Bnr ovd the Finh ?lan. TtrNcoryoratos de also beinS @odged to att act norc privale iNsttnor bworl sid. by sidc with public ibds h vdiou ddelopmm! ti.tds. Duing rhe

Sixth lla p€riod, e irdcasing preponion of rhe developnent pngI1rm.s oflha* co.ponrioB wil bc 6mcd or of tlre stf-gddrcd lellc.Cociddalion r€s ats be given to conven norc pblic s&tor adrud$ j o aco4ont for4 for itu|rre, i. RlnmF, Oit 6d c'r DcElomanCoryoqtio4 Telephone ed Telegaph D€la mor, add smta othr acdviti6.

D*ctrr.lllhrion of Der.topmentActivities

Th. Si\di Ptd ws bas€d on rbe onc@r ofd.c€ntratiz.d dcvetopmcnr. Thedcvelopmenr !.ogrames exctuled by the Fedenl CaveMelt have increaFdftoh alour 20 pd cdt ofiohi public serd &Elopm@r sF(,rturc i! l9?G7l 10 about 80 per cat by 19E2,83. Considerable devetopnent rinciroc we@trasfftd in 1973 Aom prcvi&s io rh.Icddt covchmerr Tt6e inctud€dfcftilize! $bsidy, flood conrrot posr?mq cut Ehabiharion, ulbdr.spon, uivdrity educatio4 prevodve hdlth pmgtu€ &d ml halth,beid6 othc. prcgtilm, U6e Fanspon ws @ddy trasraq.d bact< to rhe?roviEial goy€melis Ir would be iI€ poticy of rh. cov€m.trt to Ev,ewcorlinuously wh.rh.r, ed in wh.r Dmtr, additio@l d€eetopmcot nuctioBshould bc tr@far.d b the pbvisccs duing ilE Sixih plan ldiod. Evh on l!€b*is of tlc exisiing disrriburid of nrdioN, ric atio! of prcvinciald.velopncnt plogdDnes is likely to inc@sc tom abolt 2t per c@t in 1982,83 to ovd 26 Fr ccnr in 1987-88, sirc. I @jor @clmdon r cor€@Lrcd ined@atio!, he.lth ud .gricultuc whi€h e ldgdly ude. &ovincidjqisdicdon. Iac povinci.l stft in thc dird ex@trotr or d.v.loDDat

prcjets will bo cvd largd in @c th.E is ftdh.. d@nrdizlion of

one orlhc tujor @nctu of$e Sixth lld m to brils dweloprne clcd to

&c peopl€. T!@ msr b. largd.otmuiiy pa.ticipatior itr rh. ex@rion ofdevelopaol proglms. Th.E mut atso be r largc. ble for elet d toolbodi6 in lhe plming ed iDpl@r.tion of developh@t !rogra|r]@, Ir i,n4c$ary to tuurc $at ecomnic dcvelopncnt ni@s the spiFtions of the

l@al Foplc ed is l.€elr .x@ulrd rhrcugh thcir oM .dive paniciFtio!. Th.local bodies will bc o@wgcd ptay a la4er rct€ in rhc lrovisior o{ bsic$ei6. TIE District Councils baw rt@dy PEplr.d then Fivc-ya pt4whic! will be discusd with then md n@e$ary fiMcigl hd lechnicalsupFn orgmi4<l ftr rhc impld€ !ri@ ofl!6e prcgtllMs. Tlc Snth pt&aho contcmplatca @jor fienchl $pport for Non_OovemdlltOrgtutltiom (NCOS) so lhat lbey @ play ao ircrr$ngly larg.r od lnoEefrct've ole u Uc socio-(onomic ad!&ce of the seier'.

TbL! the philospby otth. Sinh plm.l6ty wa rh.l developu sholld be

ceed out by tbc p€oplc thm.lvcs, wiih neBery Asisrance 6om ihe

ln ordd to 6u! ibr belcfirs of@nonic grewth do not ger coDeftfatcd n afew hu& but @ spread equirably tl[ouglout $e €conomic sylt fl! rhc SixthPlan l@s on the following op@rionatpolicie:- A sir-poirt progBm. fo. r mrior-wid€ ircone ud dploymat

polcy na bcd daiged.- A nuch Lug$ sbft of robt .alioDl scdic6 of cdu€tioq, lealtb, waid

slpply dd sewmgc, elstricity, and rc.ds ba bd .amd.eit for ?O

F cdr of tbc popltarioo tivirg in th€ ruBl a]4.- ConcEte progn@s loi a mor€ apid devetopndt of womd have

bd d6i€rcd aud inlcgmred i, 6h sator.

- Spairl progmca d b.i!g lauch.d to extend s@ial s.f.ty n€r io

tbe bcr wln rabL Srcup6 in siety, sucb G lbc ildiear poputarid,

rohou$hed childEn md those ufoft[r1ety disabl€d dd

Thc& prcgrtua @ deqib€d in der.tl tlblghoul th. ?16, A brief

sunntury '5

givd b.low:

Iocone ud EDplorre Poticy

Th. Sixdr Pl6r will !.ovide new cmplotodt olportulitid for ndly fodnillon addirio l labou foes rtrough rhe fottowing steps:

- Cdter sFcs oD smll Sm prcductio Obwh ouch ldg.r prevision

of aed.ultural crcdit mbing n to 50 pcr c@t of lhe rorat ihbtrgb rhc

inhodetion of sNtl FacroB sd @tt fam &chrotogy, od tbrcugh

the dpid sped of .@donic iltbiocrure in rbe M, al4.- Incdliv€s fd 6pid expasion ofsMll sdle uir!, particulrrly in agrc

ed.qtn@dry indllrri6, tbrough |tbcatiatio! of ddonic co rolslr€er lvailability of steel at rasBbl€ pric.e, spread of Mlel@Eifi@tio!, ed ! fwoulblc 6eal sysrea

Prclcals for mderlating @l {o*s progt?lm.s b6cd on patisian,s

om ebqgine agrjcultunl suQlus€s,

- Acel@r.d i@riomt r.aining for pakistan's tabou foe, borL b @lcrlo domdric needs dd for Der nigFli@ abroad.

- DeveJopmdr of appre!.iatc tccbnolosf, uing p.lisbn's oM dwroteriah and labow, rbroud . four-fotd inftase in expcixliturc otr

scrdcc d.l rechnology dd rhFugh thc d@ltraliz€d .stablhbnent oftdhnologicat iaritut6 trd indusrrial sir6.

- An incone Dolicy aimed ar ilceased wages i! line wilh increass in rcal

Fodutivity and pdij,l ind.sdon of rte el,ri6 of llc 6x.d i@D.

Runl ftrnsform ion

Ilre S h Plar also aiB al a nlid rusf()mrion of tle rurs! snc in lmywars. Rutal al4 brve sl@r rbtuugh rb@ d!ud6 of devetoptmt Only

recsrly, d &@lentcd inctw in agricuhdl prcduction h.s br@ght a

renercd attention of what b lackjlg in the .urd ee$ by way of social sNi@sdtl how much still rcmis ro bc done to op.n thm up to @mmicdevelopnhr od to .arry the ..nl.E of 4oromic gre*{h brck inro rbe

henlald of the muilyside.

At pBdt, the pbsiel sd s@irt ioflasrru.nue .& hopclsly dctlciot in th.Iul aeas. About 65 p.r cdt of th€ 45,000 vilag6 in ilte couotry, ddnu@rcu snall scnlc4enb, go wirhout clehiciry. The rural mad networtcontai4 l* lhd on -finn of thc t Gcribed miniDuo of 0.64 titonet r ofread, pd lqle kiloncr.r ofu€a. Only 22 p.r cer ofrbe tul popularjd is

swed wii! srlc drinking watd. t s thatr oFh.lf of rbe @lpriD!ry shoot_agc cLildFtr acnDlly go to sh@ts dd @l fcfut. lircBcy hovq mud tbc

ablsDal 6ic of 5 p.r c.Er. The our.crch of ihc uosr cltu@ta.y forn of Mlholl! ndwo.k niss€s oul I pe. cm! of fte poputarion, Only 1,000 our of 7,000

d@io6 in thepunlcretorlrpec rcF. b the rur.l al%_

DuinS fie Sixth llar period, boelils of et4tricity werc ro b€ €xrended ro 8lpd c.nt of$e rod villac6, conraininS ldly 90 pft6r of rle roral runtlolulation. The addirio@t tr twdl of hm-r6Mt.r rcarts aDd cdd @dswbicb will b€ opd.d ro pubtic Bc will hclle about eighr_fold in rhe SixlhPlm a conlarcd to tle Finh ph period. Ir dm tha! lh€ p€rccnlagc of Mlpoprlation sded with clean drintilg waid will h. sised Aon the ptlgt 22pd ccnt to .bout 45 pd cdq ed scwcFge faciliria &om 4 F 6r b l0 pdcor Thc prcporrion of rh! roal priMry shoot ag. childm n rural schools

win bc irc@ed fion bclo* 50 !8. c.nt b ?O pd e,t. A @tiotul nral hedihsdicc wiu be iattuduc.d (!ef@bly on a mlulrry bsis, or oEpulsily ifnec*sary) tud e exrc$ive nerwort of basic hcal0 uits md @l leatlh

ce ers will b€ coulruci.d to .xrcnd hatth covdag. b t citiE oral

Snch a rual t a$fomrion vill b. ttuly dnnatic in it' impac!, It will b.Etr@r.d in th€ .laily liv6 of miuioB of r€opte. Ir wifl a]so $rppdr ,!d&cel@tc d .gricuh@l br.akrhrold dd h€lp c@vcn 1h€ cou!.y inro borh a

pmpmls cDnary .rd m orcblr4 saing its oM ncc& of setf_sufici@cy sk[ as f!.!ins €rpon Mlcrs abrc.d, paniatdly in rhc Middt. Edt

opp.rtunlris fo. won.n'! D.v.topdcrrA not bl. &ane ofrhc Sixth ptd is r!€ sp@ial cnpl!3is pl&.d otr woncn,stLyelotmdt- Tb. Plrtr @didly Eognia rt r no si.ty @ cvd ddGlopbalftibcnr.d od half-shactd.d, lt provid.s ii dch Fctor of Maomic adivityd4clopr!6i pbg|fu4 ro inregnG hm6 @d lhcn @cfr! i{ rbc

@ilstcd of social od ccorcnic life. Oveh dewlopm€nt should bmetit allstio of si.ry ed n is mr Fsiblc to segrcg e all r[. pregrlmA w[ichvill bcrcfit to ovcr Rs. 20 bitlion in U. Sixth plaa.

Srfety N.t! fo! th. p@r

TlE Sixth Pld prcgllms aho exlcnd a helpirg bdd to @ p@B groups Dseiety ro mbl. thd to srand on th.ir oM fcd d p.I $ to pm{dc mds ofsustdE@e for those who my havc no orld alt€eative of ,.mBrivecoployn The!@gm*inctude:. Bcnefit of zakar ud Ushr sylrs! to 1.5_2 millior mllrahikcd

(d*ruiry indisans) duids rh. plo p.riod- Nutition prcg@cs fd t.2j dilion s.v@ty ,ut@uish.d childrcn

md one Eilliotr prcg@t mothcE.

- Prcvision of . stEcial Fogram. to toot afts ilE slEiat cd@tion edcwtlve nceds of o@ billion disabl€d dd btudicapped chit.trq duing

C€n€ous ftucial suplon to non govmtal volutlry agencid tc!

doMge l[.n i! thcir etrolrs ro a@liohre ft. loci.l &o .olnchardicaps of lle poor people.

D*lopbdt o{ 100,000 smll plob ev.ry yd &d povki@ ofi!t6!t!e lod b belp low,incore groups blitd their oM houa d

The Sixth Plh h*s lmy bold depsrtuB in ils preCraJM* ad in its policypEqipdo6. Ite baic objadw is rlE sic@tronic @cipation of rh.@$. Ii G bd.d d a e.lbdc appFkal of rlc tune ec& md capaciies ofthe utioa. Iis policy pbpo€als e conmr€, opdti@l ud tu tlblc. Bur intL lat anatysis, their implddralion wiu dc!6d d rh. cmbiftd sil of rh.Btio! md its willingness to &ftpt liBh id€$ ard nw oppulutrs

Prld3l.r's Sev.bth Dev.lopmentpl.o (198&1993)

ln dccmiDing @noDic dd ddetopocnial objccuvB rbc ss@rbDcvGloph@t Pllr had reli.d otr ihc .tevelopdord achievelMts of rb.pl€qou pru so al to b. in lire wiu the rcquir.tnors of 0r€ tesitioDt stag.,Mosr pdninmt of rhN obj@rivq w€ tuc@rlrior on.nco@gjng trd{iltnvat sector to Ealizc d avmSe @ul gtu*rh ,arc of 4,2E pftor,@lizatio! ofa r.al avengc dnul gbwrh mre i! irvcstlDc ar tne sc of2.l2pac.nl,

'mpDvehmt of lii. status of rhe ctrcnt @cout in rhc balMc€ of

laym.nts ro a poinl wLer it would Mliz a $rptB eriMted .1 i!. Bt of2l-79 p@dt of cDt by rhc €d of the Dla.

2 56181 t52%

1_128 1,328,81 6695 7218

I96l l21l 5232 L0t%t9224 0 t9224 8_t2%

87.361t.331 24.7n 34.100 9.14%

2t623 ,0451 31tr74 1157tPhwi.d Plmhs & Houim

\,754 I.754I820 1320

2.750 ,.150M0l 0 34013073 307.1 3 atyo

\&!!evdtqq!!!r., spod. & Touim

1.515 1.535

423 0 423 021%Rd4I, SErlllrc* PtddrS 535

NGO s Proatu. 0,t3%

!!q@!nn.t5,]00

iiit.ii't&qLcdd$ Pls) t86.102 163198 350.000

Setonl Al|Etiotr. ol hbtic SE.or Dd.topE.lt prorn@ r98S-01

S.v.!th Plu Allqtio!I

4@!!b{. 6.133 6.321 12.5043J2a 0 3324@'ry t)18 33025.232 538 5,770

t9.D4 24.63249l41 90,25234.1m 34.1m

8,351

Phsiql PlMilA & HoBin! 2.640 17.616t_154

Rurl 6.d! & nod.l villlc t.820 1.894 5,1142350 0 2.1508,401 t2.232 20.635t.071 10.092 ll.l651.755 247 2JX2

467 309 I,176

0

423 242Rc@ch srieic, plmE t35 t0l 633

2.@0 2.0005t2 0 512

0 7,8t4 ?,814

........2192e1

21,788

...........!o_1,?9!

2t,i83

15q000

193

PESnnE. olhbticS..brCorpoE od&9!

211

Progmn of }ubllc S€tor CorDon{ont

Mie[lar mDc r ordll?.6?9.

...L42,!1.1_.._.q? 1

^gi.u|dgigie

^'d@Rad^lidlnftMd.uu

IalEds..dsoir. Fd4 acy@ P!fudoi

ytEh.4^,d!fudR!6Ih

|l2'

!!4!! P'rr@. 0,0o Phhu)

Dd.{.rn tu.d6(sc^$s)

2

2. DGNRER 310.03

5. 508.46. ocDc t5.161_8

3J65.58,9. 323.010, l0?.3

t4.100.0

TrrntDort.!dComDunlcdoN (SuBbr.y)

(Irudnd rr8qr^ ppoN rrplou|IinU

^elc{nl { reirs ,oJ poil {r*x plorrN

F!troi.t r{ra u qrlwuJo r)'q mqtd

E]tq&l.q4IJ:IEo|xo!!Nnr'l@ Dl t,tut d.l,r|d

tuqalo r(lsnr FotrN

(ft.uun$ xtopu{$J Put .t!.tts

16n$u9a rdesd ro$!I! r6t 3! ^ll)

tu!ftg-nr Smro srr.l l I rd5ttrc8[R eI.tE t

@|J@cl!@a!rtgrJ

(tu.aens) t!!.troE C!: tullr.td tEFIq{

0z0l

(LtruEas) rEE&Fl.c qrnox pr utyloJ ,,uods t nrnC

(Iruuhs, t!ru,{otdua r ft dodutH

PoDurrtbn W.ll.r. Pro$.Ene

o,i6!dd|@o{.oatuidr

lsriM or r.dtfty

Nddn RsEh r!$tur .f Re,lddiv!

PoNrrion study c4b xrehi a

€.dtudm P'oje' lwq \rch.q!€,R1r3 rnd Fiv. R4jwl T'irie toriNt

sedn t.ttuorets{€

Pqn'mltqhP|.vin.I.iB

D:bvincid tudqudm ftd dndior wdlc

PF3tr'm rinlgh Re*r.d M.di.rl

FuiryIL!.i{.|q!frhdPblm

Sehl w.ll.r.(SuDD.ry)

x.ddrr cd& ofser.t tvdnE

P.b.t !" Elgbo F|v. Y..r Ph! (199348)

Patiltr! is ste.irg irs eotmic .ad 3oci.l dcv.lopmt withir tbc n?ffirtofnediu ldD (5 y{) pbrr. Thc$ pLd e st in . longd e'E pc.aeliwof 15 jts od @ o!.trd@di!.d itrough l!. i!!rl|!mt of mrd ptrs.

Thc S.@t[ Pbn (l9E&93) co!fu.d otr lr July, 1988 rnd 6d.d @ 3dJ@ 1993. ttc BSbtL Plr! ( 1993-98) cmd€dccd wirt rh. ADu.l Pbr t99!-94 ad bre be! &turlly Luchcd !n r ll. .lpllvi of tbc clei.dgoY.@t

'@dd or 3lr Mly 1994.

Tb. 6.ew! of lh. Eidth Pivc Y5 Plrtr w pFF.ld i! @Bdr.d@ {itblh. &d.trl .t6ci.3 .nd lbc proviDcid govcrlscols. Tb. 6nai.gr .nll

'EomddriioEl of 28 Tehrical Cominls coopiiring ovcr 2500 ..qda

toE public add Fivir. c1or3 !.t up i! co!€tid wirl rtlc ptlDcrrid of rlcEiShlb llu hwG tic.! rU.o bto cooridc.lrioo i! fo(@htilt t[. Ptn. IttenecB lbc initrrivB rld iMr?or ca rh. poticica ofr!. govdDlnr gcrtld ro

a dya.nic Nd .quibblc €.odortric alstcm. Tbc Pbn b ildiatiE oflb. priority

.tt!4hed b e.cirl sccto(!, .ncr5/, .taiD8! ild pbylicrl inArlEucruE I! r.rbsof gn gdcll !yst@{ n uld@oa prbUelrinr. p..b.Btip, eddpo$,cE oi ofrb. .obmuniry ud low .rhclo$ ofrlc GovdlDcnt

Tb. feturcs lblt chmcraiz. rlis cld.avou ielud. t shlrp.r foc!3 d poticy

initiltivc!, o! th. !)@gcm. !y!id4 rh€ nc.d for sct.clivity in sc.loElprcgtfu$ ud a *pr€! @ognilion of rh. f.cr tb.t @MlidldoE ednh.bilitltion ofthc ph$ical and wial irta'tu.tur! i! $ inporrst .! nc1{

ilv.stdcll. I!. dispe@tion of public cxp@diolB is thu intcgnlcd wi&

lolicy wil[ Ddagdcm ib!rcv!futr1 ed th€ pb<ndivity of |wl@ e

Irrdbnrk! of ElShr IL! 0993-98)

Pl.n Slze 099213 Pris)

ODP

M.c|!.@lonjc M.dg€oeltl. Achi.v. the gmsth LrSea in a tane*ork of.quity, sbbilit ed

2. Rcdu@ ovddl tucal deficit to hdf- Aom 7.9% of GD? to 4% otCDP

3. R.d@. cmr Gomt &6cn n@ s 3.? hiui@ to $ t.84 billid - fron

7% of cDP b2A%.

4, Lorg-tam qrqDal d.bt to |!n i! Et 36% ofGDP-

Molctary cxptuid b.low EDslh CDP.

5. Rctime of hiSh @st debl by ltilianon of privat@tion !rc@.&,6, Intloduc. Lgislative @nhol on budgct d.fici1.

7. R.duce inf ion Bre liom 9,3% to 5%.

8. NatioMl svings!o cDP nrio io fte nom 13.6%io 16%.

9. Cffitc 6.2 nilion lew job. agairst 3.2% EiUi@ itr S.vatb Ple

tt3752 l?01

Aelddo (%) (Ral Tmr 36 59 ,a

Plblc S*lor Protnbo.

457 553481 752

l. RedD. inbalaDce ofrcligioni g6dd, grcups ad clNK2. Mes16 fq povlrty alldi.tion:

- ldg t d thmugh Soci.l Adioo Pog!?l]@ ed.oployD.lt

- shon t m - thrcugh sp6i6c rclicfudd Z.Ll Sriol Maal ddSocirl Wclf.e SysleDs.

3. E6E equaliiy of opgornuity rhrough nditr trsp@cy, ac@s to

cducatio!, rcces to hcsltb cte, .r'ploluot (panicularly s.Ilmployndt and venical mobility),

4. Greatd *lf-rclidcc in fbatrcial r$outc.&

5. Mitigate the hdir.gc of olludd md dcfarlt, cdspioou @o!rpti@dd dtug addictior

- Deidvc &li@ agaisl dchullcE of toq bek lotu od urility

6. I@rcvc emcidcy, @DoBiv.lB .trd p{ticiprtion in lhc tr@rgd.ntof rte @Dnic sysED, tb@gh d@grtlltior, a@uarbility eddpow@mr of rh. Nrl coftnldti6, NGo8 ald lowo ot lN of

- Puuic - lri1lc ?aftctship

- D€vobtion ed decentilliatid prticuldly ro rh€ dbrrict lwcl,

Iofl rds Conpetitive M.rk.b1 r-Ner tax B16 ald bro.dd t x b6se, arM docmatari@ of l!.

@ony' inpov. id cohplis4.2, Crrbilnot of speid coltcdioB lad Mt{eting a.livili6.

3. Le6 tatitr$lcnue ed ilcgntios wil| tbc Wodd @!my.

l. lnplDvc @Uing eoviMrb€or Omug!

- .dcqucy ofsavic6 ild plr?ic.l iDtrurEi!!- atuqtid dd Frilirg- bctlo hcdt! corlng.- stEgihdinS ofopird br.t ts

- d.4g!Lli@ !d p.ihdarior2. SlpDonirc polici€ i! rI! 6$d, Eo@tny, focig! cxcb!8. &d trd.

3. BB@ ! EitriEM inve.bat of Rl" 9€ billior.gri.!t R!. 596 biUio!

i! l[. ?6 PI'l (199-93 p.i6).4. 59'6 &ccl.r.rid in r. I 16B.

SECNORAL TARGETS

socrAl sEcnonsEdacdai art Tntt,itl. BFhh.ougb i! FiDrty Fnicilotio! trl.r

Boys Aom 85 b 95%

Gitk filo 54 l,o 82%

2. bcralc lilc rcy nr. tod 35 to 4E%.

3. OuFur of t chici@ io iD.tt& by 5096 - ioo 85,m0 b 12?,000 pcr

4 Qurlitrtilc iDpoEm.ot i! rlc cdudtid stst E

fl.dthl. hg.sc 33,000 vilbgc bc.lrh wdtlre - pirr @jo. ctrdr for balrl

qt otio! tt i[c vitbs! tcacl.

2. F'Jl ill'tMi2.rid of dolhq .d cbit4

3. Covdgc of prcvdrirc 5dic6 to D. 6!.d filB 80 to 90./6.

4, Lifc .xFray ro go up tDm 61.5 yen !o 63,5 yan.5, Id.nt mon lity nr. !o dclinc too E.6 io 5.5%.

6, Conb.ol of miceNlrient dencialcics,

7. p€dnction ofincid € of low binh babi6 Lon 25 ro 15%.

8. Univetsal z@s to iodized salr for edible purpos6_

l. Populalior pt Eing ov.@g. ro i!ci*. tom 20 to 80y,_

2. Cont rceptive pdval@c io b. doublcd - iom 14 ro 28%.

3. topulatiotrgrcwrhat dbli\a ftom?9 ro 2.7yo.

Ratul Watd Stpplr & Sditunon

L Covedg€ of ml wab. supply to increase frtu r;7 6 Ttyr of

2, Rml @itati@ co@8. io go up fiom 14 to 32%.

INTRASTRUCflJAD

L Complctc Cl''ehmr Pjdr Bad CMt.2. Campl.tc Pat F€.dd Cul.3. Complete tii Balt Outfal Dtiin.4, Viible PrceBs on tughr B.rl Outfall Dhin_

5. 1,r'ater loggine i! the di€astcr Ns 10 be etini@ted (1.40 millior

L coEhetid ofcb,zi Brerhr Hyd.l Pdd pb.iet O45o (M\lr).2. ftdnil s@cEtion id p.ihr. scror (An nd prcj6tt €p&ity 25m

MW).

3. Coopl€ti@ ofongoila Hub Powd Projecl in prilde sctor (1290 Mlr).4, Privatiation of tb.mEl plaors of WAPDA_

5, Po@ gdcFtior @p&ity up by 68% (&on 9?86 MW to 16422 MW

6_ Oil prcdndi@ w by 106% (&om 60000 to 123,300 barcls a day) with

@Jor nv6tnclt cxp@t d too priwc scctor.

?. Ga lroductior up by 3E% (Aom | 855 ro 2554 MMCFD pek}6. R.fning dpocity up by lE3 pd @r (Aon 6 nilloa ro t7 millior roN

9. Siifdr utiliztio! of Tl'e Col. (tord 6tioat d d.posits: ove. lO0

10, Elecrrificaiion of 19700 villag.s.

1:ruwd & Conmunl..tlor

L Doubl. nil track IioF Lodhre !o Pcghswd (800 Km).2. MdufachN of 1367 Hi8! Capa.ity Wagod.

3. Conplet lDdus Higlw.y 0189 1(m).

4. Coq'letc duli$tior ofN.tiodl Highway (N-5)

J. Conllcre Ldoc - IstsEbad Motoday.6. IDprcvddi ed upgndrtion ofRCD Highuy (N,25 &dN-{O).?- hiliatid ofwo* on M!.ta @s|d Rord.

E- Coctruction ofd€@ sea pod al Ca&l$ rt$!g! privat S€.to.9. Cltu rtl p€ndhg d.dad for r.l.ph@c cod6tiod (2.5 nini@ n€p

lin6 depicring l25olo i!).t6. d kleph@e a@*).10. N@b€r ofpd officcs to rjs. Aom 13 D ro I E513.

11. Wolk on Low&i TM€l will bc initiat d.

PRODUCTTON SECTORS

1 htcgnted @gcm6t of agricuttlrc, iEigsliotr rd .trajlage.

2. Shift of mpbais to Eelo u!. .fEcicncy - podicdarly ioplrtrr@8enot dd G@h lhkagci. Ent lciDg @p !.odlction byiDpreving e6ci@y of inpuls .nd €..8h.

3. Bcncrsil m'nigm6r, ibFov.d 6po@ to f.rtitia E.a. hmdnction of sprirltd .!d tricH. irig$iotr.

5. arcahhrcugh itr oil s6ds and puls.s.

6, lntcgnr.d P.sr Malagddr.7. Mor. cElhasis d ndqop seroi8. Bsrablisbs€nt ofKiu Ba*s.

Agrtcrll!.e Productio! T.ryet!- wlst produdior u! by 22% (frc6 15 to 18.25 tuillion km).- conon producrim rp by 6l % (ftoh 9.3 io 15 nilior bals).

- Ri* p.odetiotr u! by 3l% (A06 3.25 to 425 bilid toB).

- Su8&tu prcducti@ up by 26 (ton 35 ro 46 nilli@ toff).- Non onvdtio,l oil seds p@.luction

'4 by 108% (Aon 120 0o 250

- Mcat ploduction up by l8% (fion 1.8n 2.5 nillionio$).. Milk prc<luction rp by 3070 (&om l7 io 22 Drlion to!t,

Irdutdc .trd Mh.nll

l BMklbugh in sDatl $alc stor &d impFvirg li.log. wil! Lrgc

2. Major lhin to wlue-addcd product3. IllpDved Foductio! qulity and

- Fcrtilirr (Nitrogd) Fodedon up by 60% (Aom 1.23 to 1.97 oillion

- c.rcnt pi.ductiotr up !y 66% (from E.56 to l3 million toB).

- $gar Foduction up by 54% (fon 2.4 to 3.7 niuioD totu).

- Pctrolc@ prcducB up by 50yo (ftom 7,6 io I 1.4 billion lirco.- Stdl Billcls plodetiotr u! by 124% (&oE 246 to 5J0 ihou&d toG).

- TFcloB p'odlction '+

by l3?% (n6 7D ro 1686 rboMd to6).- Bic}!l6 prcdEtion rp by 6l% (A!D 5.8 lo 9.3 million).

TMkr dd bues up by l00e/o (Iion 4000 ro 8000).

Saindat Copp* ?roj41 would be in p.oducrion. Clpacity 15850 rons ofblisl* colper, 1.47 tons Sold and 2.76 iotu ofsnv€i

P.rform.lc€ ofsde n Phn

TIE Sw€nth Fiv. Ya Pl& ws prp6Fd wir[in a bmd ba$d sic{ooomic I'ddork of a find ye$s p6sa6tivc 0988-2003), .npbsizi4.fici@t Crc*,lt in ourput @ onc bbd &d ihprevilg lhe quatiry offf. on ihc

othd. Of the PdEEctiv€ Plan lotal incrcnElal largeb, abour 23.6 pcMnt ofGDP, 22 pqcdl of inv€srmdt, 23.8 pcrcdl of expo.ts, 26.2 percdi ofimporls nd 21 p*€nt of cvouq werc dvisaged to be anained duing th.Scv@lh Pld. It alt@pt€d ro add&ss O. deffci.nci€s in social s.ctc'6,

cducation, h€alth, wom€n d€velopme.t elc. as weu a €@nomic probleos likc

fiscal ed c@t ac@mr deffcits, inflatio. ed ucoployne . Mmy polict

Efo@ w@ buch€d duing tt! Pla pdiod dd . rw e@omic cdifi@

bdcd otr CE 6terpri€, open Mkcq p.iEtiatio4 dcEgrrdio. udlib.ratizrion ba tEd 6ise{L

Thc tcnpo ol govth ws .fl@t.d by uforcsca cv€trts on dom.stic tud

int Mdoel Aonb including conomic contractio! of Edtem Ercpe dd th€

fomer Soviei Unio4 Ession in Pakistan's cxpon mlcts,lhe cuulvd, rh€

d.lay in the setd€n n1 of th€ Afghe issue, rlc polirical llM ailti6 on th.don*iic fio, AEqumtchdg.sof gov.@nt, civil disrubdG iD 1989-90

dd odds of 1988-89 dd 1992-93. How.v.r, &e ov€Ell lerfolrM@ ha

ltc grcfih p€rfo@@ rbm!8h b.low rh. pla! irge! wd itr line wirh tbc

histori.al trads, ed saijsf.crory in thc @ntext of inhat &d *r.halcon*rainB. cDP gr€w by 5.0 pcrcc.r (&get 6.5%), 4ericullllE 3.8 p@nt(rargct or 4.7olo), @uf&rurins 5.9 P.rcdr (ra€ct 8.1%) dd ollEr scior 5.3

pcrceit agaiGl the targer of 6.7 pe.cent, h .ggEgat€ tem over ?4 percol ofthe incl€lMlli ouhut ratgcrs wc.c lchidcd. How€v.r self,reli@c in Ocpmducrion oI wh@t edible oits, iror-or!, crude oil dd capiLl goodr did @tshow a si6i6cet i@r'rcvc@i.

M.ccF^oooolc FnD.mrkTb. Iisal tuio meivcd i! rh. pte did lor tut rializ. Tgrg.ts Dtating

to Edditio@l BoK6 dd corFol of cuia! .spodiru* w@ nor achi4crlTte hod offieat .teficir hd bcen d tollom:

1988-891989-901990-9r 8_7199t-92 1.5t992-93 7.9

As s @trsq@ce of defcirs, $c.lohesrjc debr m@ 6a, dobl€d dudng rhe

PID pqio4 risiry fion &. 290 bittion in 1987-8E io Rr. 605 billid in r92-93.

the mual grc*lh i! nonsla.y ss.rs ar 15.2 pcrcmr wd hield rhd rhc n ntfg€t of 12.5 !ftent bu close to the nonind growlh of cN? ar 14.9 lm€ntDonestic credit ircresed ro Rl. 326,7 billion - weU abov€ the pld slinarc ofRs, l?9.9 billid. cov.mcnl crcdn cxpodcd to tu_ 190,6 biUior aeainsl lh.tarSet of Bs. 64.2 billion. Iais was tuc mirly to in@se in budgetary suppott,

wbich Ech.d Rs. l?5.6 billioD a8insr llc ?Lr rdScr ofRs. 51.7 billid.

FortMtely, tbe "@wdira our" cF.ct id @dir alte.tim w6 Biriilcdrcfl.diry ihe dlhasis o! priv.t invedrcor Cr€rtir utiliariotr rc Rs. 1j5.5biuion agaiBr lhe Platr alo..rion oftu. I 15.2 biltion.

On th. .xtemal 3ide thc clljfur &coul deficir rcs fion S 1.68 bilion in1987-88 to S 3-69 billioi i! 1992-91. Ttis B minty s Esulr of d.r.rioErion

in O€ invisibls i.e. f.ll in remirbnes sd incE se in scryie ptynots. As a

coftciive mam rup.c crchaee Bc wd brcughi cl4€ b th€ rutct v.l!e.Ttr doud-n9€. dcbea. 6t6 wcni up Eob R& t8.12 per {toltd ir iuly1988 to Rr. 2?.15 p.r .lolld in Jue 193.

Th. pcrfoMce @ invatndt no has bm @ugilg AeaiBt rh6 grNdooe$iic 6x€d inrcstdor rarget of Rs. 660.2 billion, rhc adul ircro@t(1987-88 pn6) moutcd to Ri. 6E2 billid; with priste invdrbatexceediog lle target by about 19,6 perc@i whil. th. public inv.strn€rr

€4didcqd a sborthllof 9.6 p€l@i

lor thc plblic sector dcvelopdar proglllmc. the Scv.nth lltu had prcvid€d

d outlay of Rs. 350 biUiotr at 1987-8E pdcs. Th. lctual €rpdditue is

Btimrd ro om@r b I|l. 121.4 biuio!, sbowilg r! &hiwc|mr of 91.8

The PlaD M*s a dhtjnct cbange ir &e ccMic stucture. Spttrld by a

stady grcwrn id linc aitl thE dli.. PLE, rn ildcEid #ror ie@..d its

she of loial ouFut Bre.dily, su46sing lgricuttuc for thc 6rst tiroc. Sinc. the

Iirst Pla!, the shaE ofindustrirl setor in cDt bd gon upfrom 15pftdtio26.1 9<rcar ar6 sdic€ stor froD 38 pd6t !o 49.5 pftdt whle

agricIlt@ hs gone doM no4 46.6 p.rcdt ro 24.5 pcr@r i! Patisnrl

PIOPULT{IION INDICAI\OMI

Kl4d6 ol S.u.f Ar.U.

1980l9Etr982t983l9a4l9a5l9ol99t

l9l1941951996

1981999zx,o7MlM2M3

zD5

(l D[)9.t9.8t

to25t0.69ll.13lll

ta.or6.51169617.15tlJrt925r9.8al9,aa20.182t.tt

22.692t.52u2

25.1023.21

0! oll)5.6{t5.73t,896,076.

8.309,0

9.,O9,9

lo,2l0.410.7!0.9

||l7I l,,rlI t,66I t,98l2,tt2,61

12,9

(rr bro

,|.00

1.361.62aE15.t66,517.517.56

7.518.E:lt148.58901t9

toltlo?lu.28I1.59t2.29.7t

.JE5.0

tl55'8,48.68.8,'09.E

l0.l

t0210,8utll,5

t2.ll2.E

I t.8a

Ll.nl. R.putft of P.Llrt0

1980l93l1932193319841985

l99l19921993

1995t99719820oo2!o2?4o4

85.385.141.1

93.296.1

ll23llJ,8l19.2r22.4126,5t30.3r38,2130.6t39.81,199t592

D.olV M.h F.b.LG.r (li ill) (b nt)

106,1 42.8 42,4105,8 ,r4 40.8f09,1 44.7 ar.1ll2,5 41.6 a2,a116 49.t 44.1

119,6 50J a5,5139,8 51 55.4t44 5E.8 56,9

148,3 @,7 58.5152,1 62.5 @2157,t 64.2 63.2162 A 03

l7l_8 6.1 92.2t6L4 68.' 64.1173.8 nn 6&5186.4 75:t 769l9&2 79n 70.8

\Gl4 2G24 1519(000 ) (000) (000)

37243 56A2 n@t'a$ 6227.7 3!1613518 6Ak 3649llTz 6325 38861208t ?039 ,(l07ln68 1521 3946!!?63 8351 43811t341 Ct84 4t2r376t 9037 13s215229 *26 {11916l,18 9014 4789!5545 9ll)8 ,1681

t6134 9235 5056t6711 | 1587 a563t7997 t@r 3ml8ll0 1150 5J85r9lEl 13151 3904

CEAPfiR-5

Efiectiveree ofD@ronic Pollcld h KhgdoD ofslrdi AnbirDuilg rhe p6st thrce d.c6d.s, developn nr ctrorts rdulled in 6eacc plkbmst of *v€ral sigrifiMt aomnic snd dev.loFnotd &nia.-tu€ft in Kilgdom of Ssudi Anbia. TlEac .chi€v€n€nts e rcflected iD the

ilcrcd€d rates of ecorcnjc groslh, job opponuitis naite availabl..

div€Biffcd econonic sctiviii.s dd c@iion of t ngibl€ ed positive 3hifts irthe e@nomic aEuctwc. Thesc accosllbhsois d .lso lMifdkd in ihe

in@ded mle of th. p.ivatc s.clor in produclion and ilv.slrdr activity,

inpowd buin*3 cordnims in m.kct 6o@my ed 6€. .mpetirid.nvircmert. Duilg th. m. pcdod, rhc .tr crivdds sd sigfic@c of@nomic, fs.il, moodrty, invBbndt dd tn.L policie vri.d ir lire wirh

rbc @t@ ofrh. A@edl @nditions pEeilirg al rn r pdiod Duing rhe Fiisr

ad S@nd Pla 1390/91-139/1400 (19?G1979), Lrge sol!'menre4adiluE brcught !bo!l llc phcnoMon ofpde innadd which !€ted to

Hch 312 pftelt in 1396/9? (1975) B w.U d in.l4cd Nnb6 of f@ign

labor tuE in rhe @ut y- In Ih. c@tcxr of .ddtsine thb phd(l|rrfu4 fts@t

policy rc adjNt ! wbd ir w daid.d to 6top i!t.!t4 i, public ereadir@in 1399/00 sd 1400/01 (1979 md 1980).

Or th. othd hand, public cxpodiiue incGasd in al@ of dionsl mpoverlraining ad when work sr3rLd o. apptication of Saudizati@ policy Mlh thc

colmac.n@t of l!€ Founh Plln's inpldcnt lion pbcas- Ir should he

noted rhal attcnlion givcn ro .@nomic policics dd rhcn ini€gBlio b€tuende eviddt duing lhe Fourth to lhe Scvcnrb D.v.lopmar Plm- I! gq@I,.@onic dd dw.lopmor policis gailcd ffi!€r .trcidcy not ody in

achiwing genehl .@mic $abiliry irrenrlly and cxt@tty, whicn @reddevelopn€ pqs over t!. Fst rwcnry y.c, tD1al$ in rh. .xsutiotr of.@mniq s@ial md ovironincnral iD.ti$renle prej61s, as s.U d in rhe

!rcvision of bett r e(tucarion, hcltrh ud cnvirofiroht sdic6 to ciri4'IAi, b3 helped i! dpd3ioD of c.oionic activiry aDd ecl@li@ of si.ldevelopmot itr gsml. Mor@v.r, busin$ @ldidoN imrcved in rte @ker4onomy .nvircm@t wbile p.rfoml.,lcc €tficidcy ha beo eDb@ed in

In the context of the Kingdon\ cxperi€nce ovd the p.sr ibre d@adcs,

ibpleMtation of ilvqtuidt policy took plac. ir two fietds, The tEt otre ircdfined lo 6ndiq iwcarrn nt ud dev.lopmdi prcj4rs by the govelmdr sDe6sy rroles ft atl@rtcd in thc pl&! which includ6 dcvetopnol ofnllfu l@m4, s@ial dd h4l!h d.vclopm.nr, &v.lopmt of eotunicr@llm, tolsport &d td@muic.dG, neicipal sd houing sdie.Filfuial !!.ollft sFnt h th6c i.ctos ilc6cd Aom SR 34. r bilid in rh.Fi6t Pbn r390r'91-1394/95 (1970_194) ro SR 485.3 bilion in I[. s€varhPld (2000-2004).

It is noted d thc paneh of rltoorion of lh.sc dp.ndilB dong rn eitecro6, thnt dcvelopnor ofbM rqsorccs, wbic! ruk d ilird h tems ofits dl@ti6 in rbc lirst, S.@nd ud Tlitd ptan!- tuted fsr Fgudilg lhe

she of its dleauons A06 n\c bral public exFadihle or deElo[mmtag€nci4 in th. Fourlh rtuough thc Seve h pls. h the S€vad !td,allocatiou of bMe r.soe* dcv.lopm.nr !c@hr.d fo. atort 5?. I prcatof rotal €xpcndirw on aU ddetopmor agencic!. Th€ sitution hs chmgedregdding qoN* allocaied {or tundiD8 jnftastiuctunl pmjects which mtred8at mmming totd alloc.tions o{ rhc four d.vclopndt lgaci€s in rhc 6s!sedd and lbird dm ilcn E ed second in rhc fourth sd tifth plu, thomt€d lhid j! the lixth dd !.vcnth pb$. .nts cntuge in the pattem ofallo@ting fi@cial Gowd mory &v.lopndl !g6ci*, refl61 rhe @twof pmg4 in rhc @ury\ !@iGe@omic dcv.loptMt oB the pst Friod_

TLe dtotion contilu.d to chdge due lo lhc n€.d for brildjng phylid i.na-

siructure dwing the 1970s dnd 1980s, tr cxpadilg €deation, acquiri4 stills

od lrainirs ndtional lfupowd to make llse of.vailablejob opponuiti€s udk*p db&a8t of the npid e@nonic .nd r@hlological devclopd.nt witn*cdby rh. KirgdoF si@ the 1980s up 10 .ow,

The s@nd fi.ld of lhe public invdt'Ent poli.y Glats to .Dcougng mti@lhd fodgn pnvab invdhrdt throu8! completio4 by the Sovemat, of

inndlrlctlral prcj.cts panicllarly potabl. Mlq, Mt€r for civil pur!os6,

blc@mui@tions d wel 4 adottion of FeulaliG ad t|l..sl6 tblt

lNvidc ad.qultc dvitu nr for etddior of cqit l to bc uliliz€d in

invBtddr prcjets in au *omnic 16!06- The Kingdom ba E& eLstaitial

pregBs in @Ntiei!@ of intat$.tuE, conpl.tim of o€eiati@lsEucnG ud ddclopMt of adcquare

'nvcsmd rcguhtiotr3.

Priv.t Sdtor .!d Ncr D.r.lopml(.l R..po.dblud6

Tlc Sixth D.vclopmdt PIe stB$d 6 a key sFmgc dn@d@ fqdevel@mcor shriag that th€ govcMot rhrll not urdcnlk ey eononic

activity th.t could b. perfomed by thc priEle ector, .long with poviding rh.

s6br eith oppoiuiti6 for op€ration, trl@geedi ed Mintcndce of

lriliriB M by thc gov€lmot Tbc Pld lbo @phasized o! tbc trcc€sity ofuting pbcri@l ndu6 !o ctls@ opporhuilie fo this s@tor Feardilg

iDv6hdr dd ganiciparid ir rhe D@gcdbl of b6ic bdutiB Glablish€d

dd oMed by the govdtrr@I. It abo €alled for stndying somc &1iviti6 of

ecomnic naturc to be sl*ted in uh mmetion s! s tcldon)ruicaiioN

dd milw.,s in ord.r to der.min. th.ir priv.tiztion in . '!en ble tin ,

previ.lcd tbl such ! stcp should b. of rel boefit lo thc Mliolal cdony.Mo6rd, th. Pl& s!€fied a $t of nrjd objetive br.d witt lhe privlt

s41or ad it3 relc in 6c @tioml .@no6y' tey rlmg whicb ba b€m lo

€nvision a ?7,9 pqc@r conrribuiion by l!€ s@ior in tool itrvestn€ntsr udfirdiry of 45 pftdl of its toral inv$tn@rs thrcugh oM{caol@s s w.U a

r.di?:iio! ofral avcEge annud grc*lh l!l. of3.5 pcte!! thB irdlalilg thc

sctor's shiE i! ial rctr{il cDP tiom 71.2 per.or ar ftc begidins of r[cplm to 72.3 pacmt by rhe end of tbc pld Thc Sixth pto atso srr.lsed lhc k yrospoNibility &d capabilry of Oe pdvde s€cror rcearding the prcvilion ofjobopPortudUcs to the @tiord lmpower and Sludization policid h rh. tabor

mrk l. Ar $c\ the Pl& expdt.d . Foviri@ ofjob oppodruitie for.bour.166 thou.and Saudb by r[. piiv.tc sdr]or, lhrcleh epllc@ar of 264

Oousd nonsaudis by Saudb alonS wirl cFrid of 182 rboletrd Dd job

opponuitid Futh@rc, lh. PIN bighlighred llc priqte seror's Dlc i!cconohic &dvity tbrcugh ttue kcy rhdcs:

0) Mobiliaiior ofpdvate fimncill r.sowes in ord6 ro suppon finding ofpublic e.terprises faciry shortagc in fuarcinel

Priktiz.iid of prcducrion acrivirie thsugh expecid in eigrbs@agtu! op@tion {d tuintc@. mntncas of pubtic poj6E b

(2)

(3) Di-vqtne of Uc gFdul sal. ro rhc ldvat wror of eDvaMdrsh@s in joint stoct conpaica followilg id@th studics of @hitrdividual @e so that thc s@ial ed cmnonic @srs and b€n€tit! @ b.

Pmpdly d€lmi!€d wh€tr apprcpriat conditio4 pEvail.

DuinS tL. S.v6rh D*lolm6t Pld, rh. scop. ofrhc priEre scclo.'s &dvityh.t cxpud.d a a t4lt of ln. ptu! sr-.Lgic diieli@, imhrding d@

an nrion to iEpldotation of rclcmt policie! ald DasNj, ,rd dplah or.tl6ctid of foEign inerents inio the Kilgdo4 lrr@oi.rt Fgubtorym.ndD@t3 haee b€m int oduccd for.ltt&ri@ dd mg.m.nt of foEi8ri8.stlcnts alory wirh cstablisbmmt ofthc Suprehe E@nonic coEcil, Saudi

Asbia cenenl hvestnx€nr Aui,horiry (SAcrA)5., ed i$udcc of th.

- D.e,kd ktdtu e rE d d ,..'tdF ottt. F@@ htu ld d seu $ t'@ 16 t^. wh'u d. iartu.@t'

Dvcslncd b\{ a well a the Egublion pctuilitrg !o forcigleN, o\lncdhjp ofqr $trc. Actud narucs havc also be.n idriared to boosr privdiariotrpolicie and pep@ @rcmic .nvircdrn@t nddery for dra.rior ofprivacmtiolal dd for€ig iny6hols i! tinc wilh cltu_cut developadhl piioriti.s,Th€se rcasurcs ained at cntarcing ih€ €IEcidDy of vadous activitid,supponmS rasfer of nodeo technology dd advh@d tcchnolosicalknowlcdgc, in6*irg export opaciti* ead nbing the @tro@t productid ton41 noa dom6ric @nsumprion rcqui,rnents.

Thc Sev6t! D*lol'dor pbr adopt.d scv@l ncalrc dd injriadve.iDedal supporting so"I &d ncdiun .nt.rp.i*3, s sh €nr.rpri!.3 cdsritut !key bae for rhe priwre selor, Th. pld also €npbazd on sremrrDrgprccedu€s Etaled b the gbbtishme of SMES wilh a viev io .lininatrcutin coNrlints aacing €srabtisthcnr of such eterprbcs, Funhmorc, theple fo.sed on studyilg rhc Fssibility ofesrablishilg a s!.ciat nud eith bothth.8ov.mdr ed priEtc s.cros p.nicipltion b fi.itiraE dcs to loG bySME5, alotrg Mln develAirg !d Ishmic nuling D,t utMl $ct s"MuhaEla! , MMba!a,, ald .Muduarubat- pirh a vicw ro fiurhcr brcaddfinanc. opportuiii€s availabh ro ihcs. institutio4, Tte ptan abo strcsscd onexpoding l.nding &tiviti.s undd&kcn by the Saudi C.€dit Bank in order toprovidc soft-ted lod ro such oierDrjs.s dd activitie&

In bdcf .ll@tio4 of rhc privat slcror invehol i, abov. m6ri@cdprodeing ald seFic6 3ecro6 during rhe Sdert[ Develolmdt ptd w@ ,sfoUows: Thc bral inv€strne ofrb. pdv.re ecror duilg rb. pdiod 1420/2t,1424/25 (2000-2004, Movted b SR 254.2 billion. Whil. r!. pdmr.geshares ofihese s*tos ae 4 followi agriculnr 7.3 perco! t ade l0 perc6!lnancial sdviccs 8.2 FEcn! oihd n&ufaciuiry 13 pdcdr Ttc sblre ofrcal d3tc dd s@ial dd p.Bon.t sctuic4 setoE @hcd 57.5 Dc|Et md 4

ngllr. - 2

s[rrf rt ll r!ilr\!!qut

PRIVATIZATION POIJCfPriElizrtion activity wibd.d ! subnotial shin in tt Ki!8dob wit! th.isuocc of the Coucil of Minist r' R6otudon No. 60 of v4,t4t8 (rggt)wbich dcfin.d eieht obj*tivcs for rrieriztion &d etruilhld bss ho b.t lc! irto .@ut in rcdtjlg th@ objariac.. Frdb.trtm, rhc Co@cil ofMiriltd' R$olurid No. 25? of lt/ll/r421 (2001) sr.pdaLd th.t llcsup@c Bo@Eic Coucit stnll ud.!l.ke epo$ibility ftr lupdfting rhcpnwtir.rioo Fogne ud follw-up ib iqleodrtiod Focer .todg willcoddilrtid bct96 gwdn|@l .g@ie s rcfl s i<t ltifotior ofacrivitics to be priErizcd,

ObjedB sd Poll.L. offtindado!The Coeil of Mili3iors' R6otutio! €[.d for @tinued and inde*ddtribrtid by priwi! !.ctor io $. mtiomt €.onomy by .doptilg m€ b6tmibbl. d€rs. Thc r.lohdd abo 3rn d 6rr qp.!di,g tt. pdricipati@ ofthe ldErc aector in thc scio-€colobic d.!do!!m1 procca! $ w.[ sdablilg it to dsle its role in ilvcsrndr dd fhance should t in line withtlc etiolll dcvelop@t pl4

The Kingdod's Priatizariol st !rc$, €nco@asd tte follolvi4 mjo!

3.

l.

6.

5.

2,

Enlar@ effici@cy dd compcdriv@* of thc @lio.j Edory ro

witlBtald rcgio.al dd globat @mpaidotr.

EncomSe privare sector inv.sdnml &d irs cf.ctivc padicipation in the

latonal econmy d5 w.ll as incrcdirg ils shre ofcDp.

B@dd the mridal o@hip of !rcductiv€ s.$.Enco@gc Mtiolal and f@ign irvstmot in I[. Saudi €.o!Dmy.

I!.Be job oppo.bniris, ccu! optinat .llployncnr of Saudi

Eliools and 6 itru. incrding pd epira in@@.

Previd. affor&ble ed lin lyse c6 to cirt4 md inv€$oF.

Ratiomliz. plblic qp€ndituE ad rl4iate burdds d lrc s1!ic budgetby allowing rhc Fivatc scclor ro fD@@ rhe provision, op@mn sdminl.@ce of sone swic.s,

I!ca. govtuar av.nua tnDugh evenl iljtru6t3 $ch s rbcproceds of panicipation ia &riviis ro be pnutiz.d, rh. fnucialretu6s eming Eom g.eting coocBsid nghh ald ihc rcvmudgcncEtcd ton p.ivatizinS parl of rhe sovme she€ rn som.

8.

Tle priv.tiatiotr stralcSy iscd by rhc Sup@c EcoMic Coucilt d..rNo. 123 of 4Blt423 (2002) 6labtishcd r!. teehrk oflb. potici.s rkouslwhicb O. afo@mtioned obj€ctivB wiu b6 resliz.d talbg into &@urinicgrity and non-duplication of th*e polici*. Ir is nolwonty 1h!t th*epolicis ai6 ai privatiarion of prejccb sd prblic *siB, which e adcqurfor pdvlr scctor ?anicipation md opd c@p.hnoD, Funld&m,priwtialior should l€d b dp.lding l[. rclu. of s!$raiMbl. dirErov6[Mts a wel 6 @gdan of dl padlly d ror.lly privarizcd.d.tprise on o@ftial basis_

Tn privatiation sFareg)/ dbs at hcitiraring padicipalid of foeign

invBtnctrr in oMcship of prcjftrs ed typ.s of prcductive acrivitiB lo b€

pdvatized in line wnh nesres regulaiing such panicipatior. The lral.gy al$f@es or 6uiog @atireu dcv.topn@1of thc 6@cial MIcl to altow

opponuitid for doF .imesrjc aDd forcign inv.stt!6r atorg *irh prcviding

hor. ch@els for atlra.tiotr of saving3, lurrhmoE, the priEtizatior sratcs,stE3s6 on e$uing suppon for ncw inv.stm.nb ir ordc. to prcvide

dpblmot opportulitiq to @tid6t @rpowd, nbc Saudizarion ar.s ald

Pav. l[. way for national |@powq rlining.

Thc rtle$, als calls fo. ldrlrsline the situation of |Mlowc. in a fannfud wh6 thc {ctull r€quicrcna of !.ivatizcd etiviti6 fd cxc.ld the

cMdt lwcls. lt abo call€d for rh. dl.blishl@l of d Nlolomu cgulatoryaulhdity ro d*l vith s@ial, r€guldrory and $pwisory iss@s wilb r dw ro

oDs.ry. @smq rDtc6ls! slch a prcvisio! of qultity afiord.bt. s@ices.

Thc !tr.t s/ also calls for cEturion of inn$tucrunt prcj*rs aad pbricfaci|iti.s i! ordd b d.lcnhe rh. f.sdbiliry of rhcn Fivrtizario! along wirlnaintaidng tbe role of the government in lhe provision of sonc cssolial

Th. primtiation sr.icS, drablishcd a ldies of jnplm€nt rior polici6 swell as n€cheisos lecBs!ry for rcalizins €conomic efficiency. Forcnosrahong ll6e $slEndinS er lddirioMtgo'm6i ftucing of ptuj@rs. rhat

havc bcd apprcvcd ao. p.ivarizari@ Exc€piio! to rhis wi[ bc timir.d 10

inv4trnmrs tbat de absolut€ly nec*lary d well s ro tuldig of n.int treercquilencnrl. Anoth.i componcnr ot rh.F Fticic! ie io diw ihc fifficial..cgulnory dd olEEtiotr l sa.n$ lo prepde lhese prejers fq pdvniationwhil. ofrsilg for comp.drion othd govetmdlon d pbjats slard forprivatiatior On the othd bDd. thae lolici6 !lr6s on ddclopingm.ch&is that ed@ on-goirg incone ro rhc govelmdt aob privatiz€<t

Foj..t, ia addilion !o cshbli$i!8 nc.lws rlc6slary !o .D!ur. addluEEtu!, to dc gortt@t fm Fivlti'rdm of Fblic .cFi...

1!!rd lr-!'!rr1trt,L.: ,! r ! 1.!t-!!!llr!:U ..s!\-r,tr.d(rhg Ihrll,lltnu! I'hns (.rl ( { trrt Pri!{rt

fl,r r'rh rlm l|tr Plr

Thc S&di orkcl €pFsrs trortt ch.ll6gc dd opFnuity for foEignbusin$ss. It lies at the head of a tatgd CCC ruket, wirh meis having a

higl dilposable ilconc. The larg€ p.rc6t4se of youg Saudj lopulatio! willlitcly substdtially inc@ ln. dcl@d fd a wi& tugc of 6ffua gddssd prcdu.ts. Ac.ddinS ro UN, moE rhe 45 pmdr oflhe Sludi populatim

Tlc .rcb{ge ate of lhc dotbr ha b..n fxcd at 3.?5 riFls to rbc dolh si@1986 qd prcdu.b e. Buslly inportcd on a CIF bsG ed @ sraldlrt fodutaexist! for deledi ng on @k up ftls or preducrs. Itre Saudi prc&Fba$aining ad fi@drg brs b.@bc t loding @Bi.tc6tid i! p@bai!C,cspenuy tur inv6ln nr goods ed EFst ordd. Duc to thc v.ry @nFritiv.@turc of lh. @Le! {h* US. Euopea4 md ns Edr !rcduds comp.tc

aga'$t the olh€r, above av.€g€ !al.s, swicc dd cBrotuer support mimponlnt faclob i! wiming ud minrainirg nry clic e.

Thc Ki.gdomt comcEial @giorj aie divided inlo thrc. prindy mlers ofW.stcm R€gio!, wirh Jed.tzh 4 thc min ottmrci.l @re., th. CcncalRcSion witb t[e epir.l criy ofRiy.d\ sd the E4rfi trovitre wh@ ! Lieh

concdtat'on oioil aad g6 irdustry busiB @cuB. Moy conpaDid inFrtg@ds for thei. owd use, or for diEcr et* rsLing the location md lh. nMbaof rcLil outlets 4d ihpoiant fEcror, Although th@ is Do rc4uircd6r fore\cluive disrributo6hiA the Saudi midsiry of Com.rc. pGfm rhrt alt schmng.mdts bc .xclusiv. with Gp6i to either A.ognphic @gion d prcdetline a lMy Saudi compoies @ &tive in nm€reus ptudtrct tinB.

Adv.nising is a Bpidly .xp€ndinS businss in rh. Kingdon\ which sp.nt $380niUion in 2000. Most compeies now ch@s b advcni* in a widc tuge of@dia, ircludilg TV, ndspap6, rid. mg zi&s, bi boards, dd lradc

prcmotioD cv€trts, Mtion.l fesrivats, atrd sw.epst tcs dlawin$ in mals dd

Pri idvcnisilg is .leo iryortali. In I!@t y.d, tuy ma8aan s navc

appeftd on the Saudi na*et, th€ populal anotrg then &e At Majanab, Al

Newspaper advenisilg h cdied our in local English ud Arabic pap4. The

l6al dailiA lublth.d io Ergrsh havc ciEutatio$ of betw@n 20,000 dd50,000 @d< Arab N.* (Jcdd.b); S{!di c@rlc (Jed<r.!). Ttc ladileAnbic newspapm hlv€ etiotrwid. dbEiburio! o.t circdaaion of b€twed70,000 6d 100,000: Al Shlrq Al Awsr! Ok4, Al haFt, At JsiF md Altiya.h. Uo Al Qu is ri. otrcial sovclmdr @*sfsF. O{!d trAEFFshave lowd ciEdation erd ar tio6 onty rcgi@l disr.ibution: Al Bjtd4 AlMadie. Al Nadwa, ud Al yo!n. Amibd publi.atioq thc At larba.tisisomnic &il, &cu.s on hsins is!a.

Buiness Lrws in Sudt Anbitore a @npey las dccid.d @ th. qpe ofbuidess prch@ i! Saudi Arabia"it mut abo bc aw@ ofa ruiety of bs rhrt Egubrc rbal bBi!63, includinglabou lav, lax law, ald int€ue.tual propeny law. Thse laws ae !U cutM{yn the pners ofb€ing rcvise4 s pan ofrhe goverm@1,s efo.G to ,tEactf@ign irv4tmdr ed p!B@ ib aonomic deret@runr g@ls.

Lesrl S}'3led b Srudl AnbitAs ir oi[cr Islaoic Erioc, tL. nwblMi.l soM.rhe Isrrmic L{w (tbc shdia). Th. sh&ja cosisrsteehiDgs of the tropb.t Mulmn.d (the Sma!),

of bw in Sludi Arsbi. is

of lt. Holy KoEA alE

ed the MitirSs of legal

Sevenl other sows of law ehboraie on th€ Shda ed govm om@iNlrclatioB. Royal De.rc.s &e rdopred by the Saudi Comcil of Minjsres ddprelid€ brcad n s for . pa.ricuL! a6 Mn s trre c tabou rclaiios.Regul.tioB, onen issu.d by govm.nr ag@cics, claboote on l[.& rul€s edprcvide norc sp4iftc Fquilmdt!,

Saudi labolr hw dct.mines whon !.ompdy nay hiE ed th€ r€lm of thc

dployD.nl. A codpdy should p@ed @utioBlt beforc t mieting or

reiicring the ngLts ofd dployd, cvcn ifprcvidcd ir t€@ of rh. individu.t

conFact agemdls. an mploy* ce sue th. .nployd bcfor. thc pEtimiBry

Comince for tbe Set menr of Lrbou Disput s. In 2001, rhc MilisterialCoucil apprcv.d a Egdali@ allowine &rt6 b fom t bou co@in6 itrcompu* tbat @ploy 100 or noE work6.

saldi Ailbja dos nor rax p€so.al in@me. saudi cirim arc $bj@t ro a

eligious rax, hoM d zrkar, 2.5 percent on rh€ .er worrh of lh.ir wo*iryNets (nor ir@De). Non-Saldi .Dptoys d wel s oDlmid e Gquircd ropay in.one rax b.s.d on r[. i@m. dd @ings of rtEir bune3s.

CHAPTER-6

TRADE AND COMMERCf,Saudi Arabir is the l9d largest dponcr and th. 20ri largest import hrter in

the world Exlons nov EpB6i all .@!onic s4ros. Toppine fte lbt ofcxpdrs to sone 90 couEie e per.ochdi.al$ ptsti6, n hl goods,

coBr.uclion @te.ials, dd .lectical appliucd,

S di Anbia's @mftid sro. is grewirg apidty. ftis is tui,ly duc bgendoB gov€Ment ir@ntiv€s such s rhe prcvision of lorS.rdn ini€B!fr€e loas dd $ppon !flice! &d facilitia. rD addilion, chmb6 ofomcrcc tud ind$t y in ihe @jor ciri6 &d Esi6 proEotc @Im@ial

Th* @ sore 584,000 lictued 6m involv€d i! @Im@ial &tiviri6 in rh.Kingdon, Tbcn tora1 invcs!€d epiral is *tinar.d st morc ihd g54 bilioa

Tle s@tor is ov6en by Ihe Saudi Ambitu ccncEl llv6rndr Aullority6AGIA), which oII.E print cnrr.prdeB fr. coslltin8 &d $pporlFmces ad publishs lilrs ot inveshent otportuliries. Ii Novcnber 2005,

SAGIA tuouc€d pla$ io op€! omc.s ab@4 including in CLilr, tI3 UlitcdShies, Britah ed Cdnany b atFacl invdhar i! infi"5lruclE prej6ls

Th€ rele of rle piiv.L sctd in co@eEe is subsraatiar l,lvlrc conptu@a@oul for soG 48 p.t6t of th. Ddotr,s CDp of $2,A_82 biliotr Th.ym@facture, dishibub od sel doncsdc products.

rriwL companis atso h.ndle @r idporG of @tuud dd&d thc bull of ile .xlorrr ofnon{il prcdets Sludi A$bia

20 export.nd impon n.rl€ts in th. world, md.xpons of non-oil products to

some 90 count i€s av@se doud six billion dollds pei y€ar.

Fcig! iov6tn6t is al$ gtuwing in ihc Kingdon IN.sto6 fioh aX ovd th€

wdld e joining Sodi partnd ro $t up vdtue, atF,ct d by thc Kingdor'sp.liticd, €@nohic ed s@ial sr.bility, nod.m bt.aterurc, i,exlmivc.qet suppliq ed srat€8ic ScogEphic t@atio!.

Or April ll, 2000 Saldi AEbia rudc it @ia fd forcign inv60o6 itr rlcKingdom by inEbd&i.g a n€w law giving foreig ilvsro6 tbc dgit ro rhe

me b@tiG. inentivs dd gulmtcs ofrrEd ro Saudi individuats ildcomp&i6, lt also dlos foEi8r inv$ro6 ro om prcp..ty d G{ 6iate.

The tutuc of ih€ comftid s*tor is prcmising. Saudi Asbia's mDbmhipin fte w'IO boosts comftial activiry sd Fovides Saudi poducts with mrcAportuniti4 in globol |Elct! A,otnd posirirc dev.lophdt is rle formriorof f6Fad. &ne $.t S{udi Anbia h.s ud.fi.ro wirh scvqil ocighboring

Natio@l ed r.giotul @onomies eound ihe mrld e bftoding ilc@jnglyi ega€d wirh q€h othe. rbEugh lade itr g@dr ed sdi€. rrefer ofr@bnolo$f,ddFoductioDcbails,Thci .rcom€rc<b6of f@ciat@r*ctsis ale .xpeding Bpidly. Such intcgnrio! offds grc.r.r opponuity forp€ople 10 t p

'rto noE and leSq mrkets mud tbe world, md so irc@s

borh thet incoms and then ability to cnjoy all rhar tle world .conohy b4 to

Tnd. Inve.tD.lt rrd Butn ss OpportutridBOiI @ disaovd€d in Saldi tuabia by U.S. g€otogisrs n l9jos5 rtrhoughldsescale producton did noi beein ufl afrd world Wd rr. Oil wearr! bs

made Dossible 6pid .corcmic d.v.topm.n! which began i! tue$ i! rhc

1960s and accel@1ed sp.clacuLily in the 1970s! trdrfoming ih€ tjngdom.

Saudi oil Bme e r!. llgst in fi. wdt4 dd the 6utry is lte wtd'sl.ading oil p.oducq ed expon€r. Oil uout! fo. morc rh& 90% of rbe

couhy\ exports dd ncdly 75% ofgovdn€lr Fvous. prov@ restucs aesd@r.<l ro b. 260 billion trel4 .bour o@{u.nd of rcrld oil ltserc.

Mor€ ller 95 !@ent ot a.ll Sludi oil is produced on bchalf of the Saudi

Cov.@cnr by rhc pdGratat girt Saudi ARAMCO. In Je 1993, SdrdiARAMCO .b6orbed Oc at le @kcdns dd Fnnins coopany (SAMAREC),

b4oning i.he world,s l.lg6r tully integFted Oil Comldy. Mqt Saudi oildloris movc by rdk r ft@ Oltf i.minrb ar R ! Tdu dd Ju'ayDaL Th€r@ining oil *ports @ tralspon.d via rb. .ssl_w6r pip€linc acNs i[ckingdon !o 1he Red S@ pon of yanbu,

A mjor n* gd iniriativc ptunis6 ro b.i!g significur irv6Et@i by U,S, srtEwpean oil conlsi€s to ddetop non-Nociatcd g6 fields in rbrft sepaatcpartr of Sludi Anbia. FoltwiDg fi@l idhnical lgtu@rs w|l! @rccssio!awardG h Denber 2001, da.lopnmr shodd beilg in 2002.

Due 1o a shlp risc in pcrrcltu rcvmuB il t9?4 followi.g rh. 1973 AnEIsrel wd, Saudi Anbi! bed€ one of rhe fda(-grewiry 6@odes s rh.vorld. lt €njoyed a subsiedal surylls in its ov€nll t&de wih orhd coutri€s;oports incMed hpidly &d dplc govelmelr lt!m6 wc€ rqilabL torddeloph.n! defer$, 6d .id to orhd An! dd Isldic @brri6.

But higha oil priB led to d€vclopn€,t o{ morc oil fields @ud rhc worldatrd rcded global oElmprio. Th. cdi, b.giming tu rnc mid_ l98os, B .woddwi.le oil gut, which inroduc.d o elemo ofplmilg uccrtainty fof rhci611inc i! a deade, Saudi oil productio4 which had indc!!.d to at@sl t0

milliotr baftls F day (t/d) duing l98O-81, drcpp€d to rbolr 2 nillim i.1985. Budg.tary deficits d€veloped, ud thc gov€tmdr dr.w doM its forcign

asetr. Rqlonding to 6@cial pressw, Saudi AEbil gsvc up its role 4 thc

twing prcduccl'wi6ir OPEC in rhe sllmer of t985 a.d rcep&d a

prcdlcrior quota- Shce then, Saudi oil poticy has b@n guided by a dsire tomintain @ta ed q@1A s!,c.

Howevr, b€giding i! lat 199?, Saldi AEbia again fe.d the ch.[6g€ oflow oilpnccs. D@ to. combi!.rion of faci66.1lc Est Alie e@mic nisd,a wm mn|er in tlr W€st @us€d by El Nino, and e incr.a* in non-OpEC oilprcdlctioFnctund for oit slowcd rnd pdtcd oit Fic dom by tre lba

S{udi AEbi. ws a kcy phy6 in coordi@ti.g l[e $..efin 1999 MFig! ofOPEC ud o1h{ oit-pmdsing counides lo nisc r[e pric. ofoil to i|s hjghcsllevel sine rbc culf We by @ging p.odEtior od supply of Frolelb.Ttat sde y@, Saudi Arabia 6r.blished thc Sqprcft Ecmonic Co6.il toformulate and b€trer mordiEre e.omnic dcvclopncnr potcies in order bacccr@re ioslnuri@t dd bdNrial Efm.

Covmt Brablbh.d in April 2000, the S.udi A6bi.! cae6l lrvestrlorAuthority kr.ncomgc forcign dircd invesrnc i, lhc coutry. S.udi Anbi4sign€d a Tndc Inv6mdrr Fsaewolk Aer@mor with tbc U,S. in July 2003.

Tht@8h 5-y.& ddelopmcnt plms the govcmnmt ha soughl lo al@ne itjlctol.u incotu to ratlsturn is Ftatively uddelopcd oit_bs$d er@onyDto that of . moden indtshial srrte phite minrAidng tb. kiDgdon,sFadido&l hlmic valucs tud rutons. AlthouSb @ononic plmc hrve nor&|.!.vcd all thcir Adls, the @nony b6 prcgcs.d npi. y. Oit wdlrL hr3incGa€d |!c lrandrd of living oI not Sau<!is. Hokvq, $gniticd!rEFdltion gotrtl, b^s sr.in d rh. govelmcnt,s ability ro 1@ce tudhd

mpmvemenls in the coutryt sondard of living. Heavy dcp€odence on

petrotM rcvdue conrilus, but itrdutry dd .8ricutturc nov r.cout for a

ldgd sllE of@olonic activity. Thc Diturcl b.l'ee rhe job s*itk of Saudi

gndud.s and tbe nsdr of the piivat€ job Mk.t at all lwek nroiG 1[c

lrilcipal obsiacle to eoenic div.Bifi.ari@ dd develo!,ndt; abour 4,6

nilio! ron-Sandis e coployed in rhc aorom,

Economyr Th€ Saudi @donic r.sts primily or oil Fvm!6. ls cru.te oilrew6, mouting 1o 259.40 bilion bmls, d csrioalld io be 25 Dccat ofthe erld's hoM Bcn6. Irs @tu6t gs qdB at 2OO rriuiotr dbic fat@ 4 peedl ofworld Esfles. ft. av@ge daity ourput ofojl during th€ yd2002 wa! @ud 7.09 nillion bd.l p.. .tuy. The lEr.olcm secror !@outs &,78 pct6t of tord rcvctrB, 3?,5 ledl of dc cGs DoD.slic producr ed88 peFcnt of dpon frtugs abotr 4l p@6t of rhc cDp is gc!@Ld by th€

Tlc Kirgdon, ud.r its -Saudizdon polic/, bte u.tcrtaken !o rcdrce itsdepcndence o! foEign lrbou in kcy edoA by presesivcty rept&iogqpaeiatc wo*6 (.rcud 3.6 Diltion) by Saudis. Duilc l[e l.!r few rts,Ue Khgd@ ba bcd inroducitrg cheg6 in is !?dc, iNBEat .nd sxardregulations lo make iccll & arFaclive inv.srncnt dcstinarid !s atso to lercthe wry fo. its &@ssion to the WTO. The Saudi A?bie co€r.l hvesh@tAutbdity (SAGIA) $t up in May 2OOt previd.s ..fast tracl' .pprcEts fo.invesbn nt il ditrcmt !ecto6, including sftilg up of too p.rc.nt foreigD

Majo. agricutual, ilduiii.l ed nin.Bl pmdetiod @ a follos:

Ag.iculture D?tr6, g6iG, whar, b*te, nile! sorgtun, po6b.sr pujle,s.fuc !44 to@tc! puDlkid, onio4 c.mts, mtcr rcloE. nelon..gnpd, citnD Auils, lish.ries, livcsto.tq v.g.tdlca.

Itrd$lda: Main inibihi.s G io thc fcld ofctud. oil prcductioa pdroleun,

relinin& b8ic pelr@hemicals, cemenr, coBhrcrjon, fertilikr, plrsric! €ic.

Mio.nb: Oil,8s dd gold

EXTERNAL TRTDE

M.ln lte63 of E4orts. Perroleuo, pcbochcnicsls, llasrics

M.ln P!rt!.n: USA, Japa4 Singrpor. Ftue, Soull Kd€s, N.llqtddquK ltaly, Bleil, spain, Tailu

Mtlo ltem of Imporbr Livc arinats, vegcrabld, foodshrif, b.vcng6,lob.cco, woo4 p.!er, rc{i16, hachiDery, ttulon cquip@nts, tubbd,anificial Bin, chmica.ls, p@ious s!on€, cffi! el4rj@l appli&c.q gt4$

M n P.rtreir: USA, hpa4 cmey, Singaporc, Fnnc, Sourh Korea.

NcilErlrn&, UK Ilaly, Brazil, Spab, Taiwa4 China, Auralia, ed rodja

Mrln OIC Pfto€F: Bahmin, Eg?t, Indoncsia, lrd, Jordm, I<azatb$an,Kuwait kbdo4 MataFia, Motueo, OlM, palisra!, e!sr, Sudr,, Tlrtey,UAE

INVFSII|'ENT CODE

Tlc Saudi gove@6r g.n@lly encomgca foEigr di@t bv€srn@!partic arly in the 6e of forcign inveser@t in joinr vcnre wlh Sa!.li!alfr6. To srimdar. Arercr foEigl inv6rndr dd io sEagtba {E notr{itprivale saror. Saudi Atabia recenUy revisd irs 3o_yea._otd iny€strnent @de.!d is h rhe pro6s ofrcvisinA it' f@ign corpotu lax co<t..

The s.udi AEbian cen nl Invcstmdl Aurhority {sAGIA) sFca rs rhe

pnEary Saldi gov€l@6t body for rh. iddrili@rio dd dcoongetMt offoEiga direct i!v.stm.nt. SAGIA i3 €!p@1ed ro swe as ! @.{1op-enop forbBilB li@nsin8 d wcll, Eplacilg rhe mulriple F@its t@ a Eiety ofSaudi gov€l@ot bodi$ e c]mnrly rEquiEd for nw v€trtuH.

Thc gov@t 86 itl pehcing powd ro @.o@g. fdigr iarGhor h1985, ud laid uda th. Peac. Sbicld .lefse prccu€n nt pbglm, th€ Saudi

gortrlm @h.d e a8'!d@r wirh Andic.r @lrictoB 6r .blBee joint

dne nvestrnenb equivalmt ro 35 p€E€nr of the progm's v2tue. Britishdd Fmcn dcfci!. t@ abo [.v. ofs€t Equim6r!. Ofllct rcqui|tl@ts@ likcly ro rctuin conponmb of Ejor dcftcc pehlseq ad h.re b.€rincorponted inro olber larSe Saldi gove@.nt cdtncrs.

Ooly Saudi conpei€s or citias, or ttosc f@n olhd Cdf Coop@tioncoucil (ccc) @hhiclt My ciJlmtly om lud or dgttc in in @t Ea<tiig

and distribution activitics, Sinilrrly, onty joinr vofin6 wilh al l€131 5 I percertCCC oMeBhip inr@1 aE pmin d 10 cxpon duty_t € to oth.. CCC

Saudi Anbi! .b€ nor hav. duty-t4 iryon zoa6 or At pons. l ts hcgu rop@n tlashiprnst of goods thrcugh its pons itr Jeddal ud Dalnt]:@ Th€gEatat aorcign invBrnhr in rb. kirgdon k fobd in a rclat d sror -p.lrocbdicali. Scv€El Djor i @tiotr t oit cob!€nic, have p.rrncEd withSaudig to build world-scalc pet@hcnical plalts.

TRADE IN}.ESTEMENT AND BUSINESS OPORTIJNITIES

Mrjo. Forelgn Conpmta rnvBtlng In the Kirgdom

Nmdou iotcmtio.,lly movned compsib bave inv.st d in the Kilgdom.

Such tuv.sbrcnts trv. csolr€d i! tbe @lion of th. opobiliry of@nufactiing hiel-qulity prcdrcrs. ft. tist of such compmi.s inclDd€s:

Shcll

Th. Ki4dom h5 ! Sied.rds ColMision lhal issucs intemarional

sp.ci6@tios dd sraldd.ls. The co,tlisi@ ha corrribltcd io ti. im.cssedqualty oaqriotrsl produck $&ugn Inc addng oflic@ pno. to lhe e ofinlemational tade ndb, As a E$li! nosr Sandi prcducis e clehlty v.ryconpetitive &om a qu,rity p.Epetive wirh E!ep6 ed Amdi6 ptudets,

hdslrial pLnr! l@atcrt in tre K.gdom e mory rn n4t boddi$t llatio4 in th. Egio4 ln rt€ y* 2OOl, th@ wd 3J66 3uc! irsralhrions,rcprcsenrng i01al iryesrne.b of us$ 65.3 bilion. The facroriq are h itefollowing induri.l selo6:

lql!!tq|r| sdorFood ShnT 0d Son Dnnts 514Tdtil., Radv-dde Ctorh6 .nd l,arh;rimbq rnoutrie ma rmiorEffieP.p.. hdEhe, pnntiry;;;d puii;ri;

221ctrcmet uauuiimo prsiliircaui

125BuildrnA M3trj!l. Chia CcMic &d cL6s

t5fln,lMsc.r hdrb, Mehine bd EqdDtmtsOlhd Miscellm.tu 89Tr|l@n ud srodce

fol.l24

1566

S,udl Noo{tl Eportt (sR Blluotr)

1991 25.tXr98 2t,11

2000 24.30zml2002 32_44

S.udi Notr{il Elport' by ltrdultrtd secton (SR E ron)

M.ro. Comp.hd!. Advr.og6 of Coop..t6 b$.d tn S.!rI Anbirg:. Modem IndBhial Pldr. Hish Qulity prcdlcts cmlErible pih InicElrio.d

. hdrsdd Prod@B Coapattutc wii! rhe Ewircnlmt lPrct .rion Requimer&_

. Low An !.eighr dd port Sdic. Chlrg€s.

. Saudi hqk bavc Vorldwd. CornFrjriv. pric.

. Availabiliry of Expon CrEdit lindciDg ajd In3ljmCE

. Availability ofRaw Materiab,

' n, s."dt F"dtt Det"p .d a-a *pd Eo.M- _ z.,5.

200r zvnl.hochmicah l3_45 1J.68

6.18 5.72Orditurv Mchts ald R€ldcd prc<hcrs 2.04 2.54Devic*, apomruscs ald Ere.rical Bq;;;i 1,04 r.l4Chcaicli lldBrnes ed Rd,kr prn/m t2_20 13.@

7.98 9.3630.69 t2a4

Petmcnedc.lP: SaudiAobia's p.h@hmidls dd b.sic mctah ptuduction

is @scd by the'Sludi Anbi& Bdic Indusaid CoDoEtid,, GArIq. Its

opennos arc orgmizcd nno six priMy buire$ loits:l. B6ic Chmicob: olenB, orygcei.s (alcohols ed cth@) . ard

@ntic, p.ilrry blilding blelc fd dorvut@ D.t@hdiet!dd plastics prcduc.d 6om ntunt BsF3 .$@iatcd virl cmd€ oilpro.tuct'on, Pnncipal dowr!tr.m predlcts inctu& ethyt6.rn rh{ol, hcrbyl tcdary b!ryl eihcl (MrBq, p@!yt.n , sry@.,

b€enq p&uyl6e, pyolysis sarolitrc, indlljrial cthmol.

buc.di.rc, and burcE

3.

2, Intenediat chenicats: .h.mical inrer'ncdiat€s, fib€B, od linclr.lpta olefB u.d G ingEdidts fdr luuf&brilg oomdqmFr.ochcDi6ls, Itincipal prcducrs &e @nc ed rri-.thyl@ eb@t,purilied tqephthalic &id, etbylere di-chloridc, c0rylene hcmot, di_

@tyl phtb.latc, @ustic soda, &d vinyl cltdidc no&ncr

Polrolefw: SAB\C is rhe world\ fourrh tds.lt prcducef ofpolyolclic rolycthyltu and polypmpylac borh u.d b rpc upheris pftductr n lufetuE. ftoduction includa borh high ard

PvC an.l Polyatet pnly.sbg (*€d i! t xtil*); polyst,@€ (u.oin isulatioa irdutrial p&ta8ine, ed dilposabl. curlery)i pobryinyl

chloddc @vc) (u!.d i! piphg, wne, @btc, bodcs dd Fct sing):ud mdmi@ (used in adh€siv6, laninar.s, sufae coamg!, mnoldilg onlouds d vcll as b thc mdutactun of carp.qtexlil.st boulcs aDd ortd p&iogitrg, ad houchotd ur!rib.)

" yd! /,.bb @ s. b t. uddt! Fatsrotd. t jt,2ut tcd d w chsrxd E

Pdncipal prodlct ouFuts inchdc polystrme, polrryilyl cbbnde,polyerbyloc terghlhrtan dh, poly6ld fibds, .rd mtdjna

6.

5. F"/lt €rrr otre of thc wdldt larggt produls ofllE s wcl d a

b@d tug. of ritroe6. phosphlr., d.t conpoud fenitizffi.PrinciFl Droducts ec dMoni4 w€, phosphale dd sulturic acid.

Merabi thc lalgest hdlfactuM of sr.cl producls as we as f€Nalloys i! the GCC aid is .,le dgagd in olfshoe arlshmprodnction holdiigs in Bahrin. principal prcduc$ @ noq hor ddcold roucd st@], rcinforcin8 br, wirc rcds, rcued @ils, mdlluminu. SABIC t likewisc €qagcd tu l! pro<tucrior ofpolr?ropylcnes and polyerhylqes in Cet]@y &d itE Neth€rleds.

Establishcd in 1976 ro devetop Saudi AFbia,s vat hy@ceDonlwmq SAIIC is orc of the world's tdScsr p€neh.ni€lcompmlcs-holdilg a 7 pcrccnr global Ddket st r+_r5 wcu a5 one

of the l&gest iDduFiat coopeiq i! tbe Midde Esr It i, a 70pftdl-3o pdc@lpublic,pnv.rcmpary,

boEIry FDduction acrivities @ ooy @icd our b, lrsncaatnli.led corpani€s, frost of which @ looled in th. .d1em potr d,Jubayl, tLotd two e ba3€d in y6bu on ll)c R.d Sa ud olc n al-Dalr1ll@. SABIC i3 also a parrnd ia tbc €gi@l joinr wnns jn

With total spital irveshnents in iB bsic ildurris @w app@ching $30billioo, it is tL. follldr Mider Compdy in roral @pildiatjoF atr{t rod.yra*r B ln€ r l! hrScst pct o.h€niclls, 3d lartcst pol€thylere, and 6d largcsrpolJ?ropylde @ufactlrcr globally. lt abo @mbd& a sigtrifitut wdfttn *€r position in poducing gly@ls, m.rhdol, MTBE, md fqiili&6.

Mrjor joint vdtucs includeJrr SADAF, ! 50/50 joint verrw wirh Shell;

YAN?ET md rcMYn, boih 50/50 joint vcntures wilh Eud Mobili SHARe,

a 50/50joinl ventue Mth Mirubisbii and SAMAD, a 50/50joinl venture wirh

Taiw lertilia Cmpdy.

Smc $8 biUi@ in Iw irv6rrn6b ovd rh. dt half dsd. G shcdulc<t toadd 20 biniotr o.ric r@ of p.r@hdical prDd&tioa @pa.ity, Bising rbc

Dlion s @ul ioial Aom iLe p6dr 45 hiltio! merric tors ro n@ty 70

nillion by 2010. In Juq 2005, n am@ccd thal ir eill fl@r $6 bjllion shesto ud€Mit€ capacity exlusio[ and in rul, 2005, Saudi Amco aod

Sumitono mounced plms for . mjor p.rrocbmical f.cility ai Rrbigh.

Mi ng: Tle Depury Ministy for Mine.al Rsowes (DMMR) has identificd1,273 sits of p@ioB mllls, pritwily gotd ed sitvo, d{t t,l?t site of non-pFciou neta\ $ch 6! @ppe!, zinc, nickel, im4 lq4 bauiD., ctrmc,llmun! md mgGitq

Of t[csc sits, 64 show sigDifdr com@id pomi$. Of llos in op€.ari@

in 2003, Saudi Aabia ptlduc.d 228,194 tucB ofgol4I0O,OO0 0@6 ofslver, 900 t@ of mppd, bd 3,000 bN of zinc. In aI. it is .stih.tcd ropo3sess 20 million lons of gold oE. Saudi AEbia's hrd nir€nl delosits, iD

tm, irclde benblile, .toloDite, f.ld!pd, gh.i. gtuile, enphile, gypsun,

limqtone, marbl., phGpbai6, @l( wool, sili6r*, rantaluq ed uolites.

Cologicat studis huvc litcwie ildicatcd a sutEciar !I!g@ of pbcphacd.posiE potorialy cxlloftbtc for rhc ndl IOO ,!6 ar t@tidr .lquirirgmvcstn nc ofup to $2.5 bilion lo Gxhct & dri@lrd @E &e 1OO nillionrons of phosph.le uL in alL.tdid aF! of the @ntw6r

'@ - wirb mu.lyi€lds prcj€ct€d at r I nillior ioro.

" 9:v .i,!r\ Ph,6)ffi,.#J: i*;,#i:3n!#.1* Fa-9 s.'.d 1^h4M. En;RlB

Strdi6 aie b!v. @qt.d o!.r 2rt0 miuio. ros of bauirc oc betw6 al-

Qain ed Ea'[ Side April 2003, f6jbitiry dd D.*erin8 stultiG bave ]mo4oing ai al-z3binh baun posp.ct. Irv.stttr s r,\€E @ *pele4 to*eot $3.2 bilioFincludjng ! 1.4 nilior ron alui@ E6rdy eit a

620,000 tos alutuilM rn.ltd.eb h.ving a tifc cyctc ot25 ye4. Alorbdtargeled dcvelopmdl rite i! ZaBhsl's vsi 2.7 niltjon ror oagn4ite depGitstbat wil mually leld 2O,O0O tons of high-8Edc elecEo-tused @gl6n€,

InvesloB ir ile mining s€ctor djoy acllsiy€ .xptoBrion riehts withh 1h€n

onc€$ios md ctu obrain cxcluivc nining and qpblalo los6. Theexptomtim l@e is valid for tiv. y€as, rcn wabtc for d a.tditi@l fu ya6;whilc nining t66 lsr for 30 ycaB, rcnctrlbt. fo.20 ye4. To date, l,lo0pospers blve bcen lic6ed. Dr.enrty gd@rtrg $l bruo! in R@s.

Pore. G.D.r.tton: Tbc MinisEy of Eldnicity &d Wara,s 25 ,r.rel@riiferi@ plar calb tur US $ l? biltion j! capt l inv6tDdt ro inc@total antu l €pacity Aom abour l0,O0O MW l(, noc lhd ZO,0o0 MW by y@2020, Equiring nininlll| adoal invBln€nrs i! qc€se of$2 billol Fur@p4p@hw aEkcl detud is cqully m!M6t l_ Io 1999, sm 80% of r[.Saudi pop ace bad |ccs to ct6Eicity, By 2011, rbe Dtooal "SaudiEletricity Corpohlion" (SEC) has prms ro !ow.r .[ of Saudi A$bia.

To tbese m&, in Novembcr,200l, Saldi A!abi!.s Suprcme Ecolomic Coucilc@ied a 'El€crriciry Services Reellaio.y Aulhority" d pan of! cdtiNjngnove b comercialie and restructurc thc powq grid_includhg ubm{ling1he nrctions of poeer gderation, nansni$ior, dd distrib irwnh th.ullimte ajn of pnvatiztion

Wrter Industry surcs *p.cr d.eu.ation to rcmin ! tujo. indusry insaudi Anbia for smdri@s to com+enh &. gov€@nt ptading io buitd16 ddrriDtior f&iliri€s worrh Sl4 bi ion ov6 U. rcxl t7 y€a Fsssing r

conbilcd olacity of 2.1 nillion clbic merers of *dcr per day. Thesi einilBtivq br€d of n@cssity, d indusny soulle Oedicr tbar u s new Mrad€salilation pmj.ct d ibpl.mdt€d, wale. shottag* will r.ach t|@ thnfn million cubic bctc6 pd day by 2020.

With l!. Salin€ Watcr Conv.Gion Cortodtion" (SWCC) now Btjmring that

the @tio! will ne.d to spod $53 billion on warer prcjers tbsugh 2020, a new

ln ordd to meci bugeoniDg consuher d.imd, tbe ..Mitristry of El*rricity ddWaid" holds rcsponsibiliry for d.v.lopirg thc @uFy's turN waler

res]llc. Aeodi.gly! il ir row dcrclopirg r..Dlional wat r plan,10 afl.act

turcign investoB into rhe !.ctor. Th€ Minisry cxpccrs tt plu ro be i! fiDlfom by 2006. Thc ctrlldSc is ibposins s in ord* to mer eJq€cLd debddgrcet for MGr, thc Saudi govcmar witl harc to invet me rbm $60

bilio or $3 billion pd @ur4 ia syslcdic inA!.st uctud d*lopDdt ovd

118 silin water CoDv.Mtion CotPontid (SWCCF*hch 0v66 rhe

lation s princilsl hma!.on$mpfivc watcr sodce, ..desdimrioq _foEststhat d€.@d fo. dsali@red watd witl ise by 60 pd cdr ro lO.7 tunlior obicnerels p€r day by 2010, b.scd on d average pd capird coNmption of 300

liters a day. To tu*i thtu ne€d, ii will build 20 desalinatiotr ptdts dd inq€setbe pipeli!€ neteork to 4,000 kilorct rs ar . $ 14.4 million oa tnv6Ilmr.

Prcsent spacity is 2? ddalimtion ptants-23 on tbe Red Sa md 4 or the

A€bid Culi-wifi a btal d.ily d6igr cap.ciry of two milion cubic Gr6.SWCC projdts the cosr ofnew ilvsln.nt Equircd to m.er desdimr.d water

rtemd by 2020 sl 953 billion-wn.ur Oc Supme E@mmic Coulcil6ti@t6 tbe invcst-ncnt rcquir€mor wi6in rhar priod to b. g80 biUioF

making thc padicipatior of foteign inv.sios both d atnactive and r nec.ssary

oprio!. Cucnt invesr!€nts ir ongoils prcj@ls tot l $?.3 bitlion.

Telaot@uLrtioq: With fou! Eljq vS.{T providds, 6d 22 llrqnctSflie Pmvid.r* Intetuet sdicc 4 rcll 3 Ligh A€.d digilal lubsibd liB@SLs) @ nadily aEilable lo previdc *pi@ ro e *tiDahd moe tbd t*omillion uelB. Mobile phorc @kd p.ncbatioD is M€ ly .srimted ar abour

32% ald Inimet ar 15% of ihe p$pccdve ffitet allowing mpk mn fdtunrrc erowth. Colcwedy, th. erion's p.6dal coEpurc! lDttct is grcwing

at a nrc of orcr l5yo pq y@ dd ils nobil. pboft pocriiion b pojebd to

ilclac ro 60% by 2014, snici!8 ovd 20 bilion slh..ibd

Il May, 2001, the Slpmc Ecoaomic Comcil adopted E tele.omnicEtiotupolicy cffcctiv.ly d@glrating sr.tc mnopoly of rhis !.ctor, PMMI to il. a

seturd @jo. tcleom or@ior, Elihad Ettitalat, w4 gtu\A t25 y@tiffieto 6mcrc. GSM oldadoB in 2005 oFlrilg @ th. 900 M[z dd 180{

Mbz baDds, Irs IE &E spddilg for i!trstDcnr alde b .xpeled ioexc..d $4 biuio! od ils llo osding in ocrobd,2oo4 ltr.icr.d $13.6 bilti@.

A thi.d GSM tendcr is als in lle p.@.s ofbeins otrered beforc the clos. of2005. Adul GSM Mrket Eveles e prcjected to lpprorch 58 birio! by

20n7.

Equally ponisirg martet Opputuniti4 e mlving wirbin govc@mral ddpatatal d$tid snch s Armco rhar $ek stale-of-ih€-an khnologies iq

@tworks dd opeFting system to fscilitare integntion of comuicationproc@s &ro$ buincs line!. Ncrwo* n&agda! dlta vehoBir& edrcb hostinS sdic6 @ likcwi$ in d.Md{d orhd Oppomuiti6 dirtwithh thc nor! Faditid.t @muiqrioB malysis, daig4 co.tol, &db.ining sbs.ctoc- Wirh rhe ns. in popularity of tufo@tio! rccbnologi.s!

Sandi Anbi. has also b6ome onc of rbc r€gion,s @t lucarivc mdkets for

rctwo*ilg cquipn€nt dd @esing computu baitw€ sottMe.

norbcill S€rvt@s: The Saudi banling srst€tn remaiB oft of &e strongcsr

ed mo$ pFfitable rlbin tbe Mid.sr, ojoying cmbiled thar a$cis

.xcaded $170 bilion in 2004, 20 pei&nt hieho rbd i! 2003 whera! bekprcfits grew by $3.92 billio a 59.7 p.t@t itrc|te ovr 2003. Wirh

@Dbincd caliral dd t6@6 Dow .x.ccdiry $12.5 biltio!. iogethcr hishliquidily dd arple !rciits, rh. b.nting *ror h,! rbrired yith rhc cr of 6ceomny i! l[e 2003-2004 pdiod.

Brnking Sator: Th@ rc I I b.d<s, with ooE tbe 1,200 btuch6, op@ring

in Saudi Anbia-ld ft Saudi nljo.ity-oMcd bdk! ed onc is r cCC b6nl,

llc Culf Inv.stne Banl of Baluain. Sincc th€ lat l9?Os. ihe t@imundlowable fdeign equity in a Saudi bank has b@n 40 peE .

Iou oln.r GCC-bN€d ba!&, EmiFid 86I lnt m.tiodl (IJAE), N.tioutBer of BalEia Natio@t But ot Kuwd! .!d Musl Bdk Lotd Iic6G toopd c i! {E Kingdom ald E! i! rh. po.cas of a6ing lhen doo6. rn 2003,

Oc Saudi Anbiar Moncrary Agdcy (SAr"{A) atso grnred D.uischc Balk lhc

fist forign (nd-ccc) btubn8 li€ns. in 20 yd. ttr 2004, HSBC.

PARIBAS, dd JP Morgaq likcwis. Eaivcd bdriry [c€Ns

Slo.k Elcbange Tne Saudi stock mrkct, with bore rh@ l2O joilt slo.kcompaid, is also the Mid4t regionb hr8$t in $solute (.m _ DoE illlntEbl4 the sias of thGc oFEring in Klwair and Eg/pt. Ildccd ire

capit lizario l$titure 52 p@!t of tbc lot l within .ll Grlf 6Dt y@rt B. Val@d al abolt S306,4 bi[io., it3 alitrlizga@-ro- cDp Etio sr.rdsat l2l pct@t far gqrd $d rhoe ot mo€r n@ dcleloped .quity o..tcls.

D.d@tratidg Im.it ble r€@t gtuwth, ir! vat@ ar th. ctos of 2004 ws520 p.r.et gErd thd n ws at rh. on*r of 1999. h 2004, ir Egirid.d a

hlge 95 pftmr gain, foltowiig a simild ?6.2 !€@nt inclte i! 2003. Ar th.saoe lime. collelive profi1s of fims listcd grcw 45.4 pdcmt in 2004, h 2003,

standatd & Poors RltiDg sdic*ntings al 'A" for lotr8-te@ forcign

.trmed Sodi Anbi.k sov@ien cr.dir

culMcy risk drd "A/ for leal crllqcy

Saudi Ai$i!\ f@ial sysLn cNists of fou principsl @6poDats: rhc

Saudi Adbie Morctuy Agdcy (SAMA), its dtral bolk s e€I s ag@yEponsibl. ovcaiglt of aU irs ituoutry 6rdcial scryiccs<olm@ialbarlc; gov.mmtally{Med s!.cializ.d @dil imtinrdons; md nm.y

Otr Jue 16,2003, the Sadi Cabind fomally cndosed rt utiotr\ -Capilat

Mdkels kq," phich previ.l* rb. .cquisit lcgal ed cgutdory t3t)wo* for

inv€sdnent banking ed a morc sopbisticatod struch[c for th. Saudi sto.kMk€t The hw cGates a fomt, indcpcndo! publicty hcld stock qchdge ar

wll a d indcp@dcnt rcgulator, rttc .rc.pirat Marker Aurhdity"-whicn witldeyelop tbe st@k oartet, pror@r invBiors, iorcBts, a|51|'c qdoly, &irdslilgi{d i$ue licelB to lotr-but f@ial id@Edisid s ftl saunort. sharcs rading dd listings,

Forthcoming recldted pnvatizrjon withjn lle Saudi @nony ilcllding llc@tior of panial svirgs &couts in rhc @ufiy s rwo p€nsid systeN iscqEtd to both g@dy t@st sto.k cxchaqc @pialiatid bd rlafominto d .rc! mrc impo.ranr d8i!. for doromic grcs,lt d w.lt.

ln nid-July, 2005, regdarios for sr.blishins rcw brokcngc nm vereise€d by thc C.pital Mdkets Althori9. pE@110 thdtr n e .ppli@ts foraets-lergcodt lic€ls oui d.Dosrut paid-i! @pilcl of tu ls rbdSl3-3niUion,

AREAS TOR I]\\'ESTMEM AND EXPORTS$

OpportuElll.t exftt b tbe fottowhg.n.i for iovBllr.trr

3.

2.

Appret llc Saldi apparcl mkct ofUS$850 nittior is s.t to qlondi! th. next fcs ,!4, dd rbc Fdpets for tightweiSh! we[{odsrruckdapp.El fibd sh d @ton, poly.srer bld&, ed cotion o. s k rbr

wonert lingdie ard childrcn's .lothitrg @ good.

Conput.r SoftFrre !d 3.rvt.e Th. S.!di nat t for coEputes edF.'phdah l!@iB thc t&gsr ir thc Middle Elsl dridtcd .l $228

dillion h 2001. Thc apidy qpandilg Int n.r pdi6 wiU @!esubeidiary @r*€1 fd halw@; soft\@ drd n twod( inGgatioD d{tup8rad€s will dsure co irued gro*1t for scv.nt yds, Indim@npad4 dgaged in softwec *porB sd hddwa.. l@!l!ctw @nakc u. of the o!4Drturiti6 in Oc Middlc E6r in goml ed Saudi

Edu..(oo ,trd Ahjlltrg s.rr,tcB: Ar in@ing popul.ron e.t reedfor skilled wo*e's denand 8rclvth in rhe miling rcqujreDmr.Cooplter ad IT lraining e in grcat delmd, Indi& compai€s such dNIIT and A?rECH &€ alrcdty oFEt'DC in rhis fi.Id. Thh i5 aotl€roon for cp8ion of.ctivitiB of rbc qisli4 ptrt€B .trd scoF fo.n e .nt'arts itr this t@_

Medlc.l Eqllpnetrc Higher budg€t ry allootio! for he3lth sctd mdnew hcdth p@j{ts, exptuion and ercwrh of existing hospii.ls u{tclid6 will provide d@d-sugc for oedical squiphdr fq di.grcticand lhhpcutic appu€ri6!.

't GB y H..t p"h D Bar* tuvt paat ah Ere oa@ Mtad haBEat Lna^*

ffi"#r:i rxH;.:'"y'#:y E,rce's^dn ryqtu.hE "

tuzus

5.

6.

Pb.rmic.utic.h: Ihc Saudiphmeutical @tct is thc targ6r in lhe

Middle E6t With tbo grcwing Saudi popularion who dcmtrd inprovod

hcal[caE, delhd for phmiccuticat lroducts co[ti cs ro irdqse,fte S|udi gove@n@t hrs altoc€Ld $294 Dillio! fo. medicire i!2001. Thc @rtd @tly is of rhc o.dq of ovd tl billio4 of whic[moE ih 98% is i6port.d liom sbMd Deepn lhc string.trr srudard!of .dty into fie phmacdricol secbr, porotial for groMt *ists for

Indid compmiA in pFefiption tlruss, g@dics, OTC dDgs ed hdbatproduc$, if pBu.d vigoreBly. tr my b. mr.d tbat bdd rh. cxi*ingEgul.lioN mcdicitrB ud phmaccuri@l producrs .r. Eol admitr.d ro

ItE Kingdon uds. prio. rcgislltid is md. with rt Mirisry ofHc.lth. Tt. appli@tioB supportcd by rh. r.qui..d ccnifi€ta ddylcSalizcd by a Sa$i Anbian Conluble h the tpplici s asr, @exmjied &d th. mpl€s malyzed bt the Minisrry of Halt[ ro .i:sethal tb. sahples eEspond !o tb. epeifi@tios. If rh. MinisEy ir*lbfi.d witL the qDlts. a li..@ is isucd

INu.rNe Sedica: Th. Saudi isl@ce nEJk r is chdging ederowing rapidly in both health and auroBobilc insum@. A n*coop.ntiv€ halth ilrllmc€ progm l4id out by rhc H6lth rosllm@

Coucil EquiB conpania with lre 6d 500 qpati.tc work6 10

providc hcal6 ilrsll!!@ cov.r for rhcir dplorrx. Thc rcw Egulatics.l aD mu.l itlsime prmjM of 966.67 ps pcen ro e tMil)Mof $66,667 pd pdor mully, wil! a dedulibl€ of 20 pcrcdr Oncc

the plan is impl.@1ed, thc mul medi.al pr€mium aF cxpdled toris to ll,8 billiol Th. @ iDturlr@ m*et wil dso bc cbdgirg deto n4ly d,rin d tbid pdry molor v.liclc im!m@ rgutationrarding n*ly 6 dilion 6,

9.

8.

ll.

10.

Alio Prt3 td S.ntce equtpm.trr Saudi Anbis bas the tatg€sl

@teq for bot! nry dd Md cd, in rhe Middt. E sr. Tbe sp&e Frt!@k t is .3timted ar US$655 millioD ir 2001, cxctudine tis edOngilal Equipooi Msuf&tureB, larts. Bnt rprishg auto,pd$I@ufacteE ed supplid in Indi! might fnd thb a promisile rurkct.

Ric.: Sludi Anbia inporls .tl ol ic ric. dd India dmidres lh..ic.mk l in Saudi Asbi4 whd. toral ice inpons ws valu.d at $3?9

nillion in 2000 ed €srimared ar 3394 million in 2001. Othd suppli4ofricc includc P.&istaa Tt6iLd4 usA ed AsFari!. Saudi inrort sbrv. b.gu to iryon bult ricc borh tur do@dric nErt r ed E€ponto Anicd &d o|[d AEb couhi6. India stil n cds ro cnldEc irrt

P.oe$.d lnlt dd vegchbld: Tn King.toh hs a siabt€ de@rd

fo! Aui6 add v.getabl6. teal ptlducrioa has no! b@ able ro t ?p.@ with the d€l@d, ard so impofis of tbe prcducts e qpe@ @

retuin strcn8. tacal produclion @cists tuilty ofdatca. Tb. sizc of rbc

puc$cd &uits dd v€gcilbles rna*€l is valued a1 $345 nilliotr, wirhirlo|t! mrtl lll0 nillio! i! 2000_ Olponuides erist for Indi. to

snrk foo&: fte rojofty of fle saudi populatid b€ing ,!ugbetwccn Oe ags of 15-25, rhc tocal prcductiotr of snack t@ds has

i!c6.d laGly. Maikcrs for qultiry s@ks ltill exist, Sw.eta foods rcpEfcftd S.nmlly dd eain mrk r a(rc nd 4ily in lhe Kilgdon.Thc Mka siz tur s@k foorb is $timr€d ar S I 15 nillion in 2001.

Alr Condltlorhg ud R.f.ig.ntlob EqlipDe.t: Tlc bo! dry cli@tci! rbc Kjnsdoo is ideally suir.d for grc*r! in AC dd rcftigdrio!

13.

t2.

equipm.nt nrlk t, estibatid ro rc&h $ I bilion in 2O0l. Ir is losible ro

6nd oppori'sitis io this Darka fo. Indiu oftpr.ncN.

Elecltlc.l Power syltedlr B@.u€ of . apidy dpondtug population

dd .r mbitiou irdshialiatior pla!, Saudi Asbia is one of thc

world's mon aftictivc ndt B for lpwd gdcatiotr erurn€r eosdic. Thc Saudi Miniltry of Indanry ald Bleticity's 25-ytucldEicity de 6lls for ll t? bitlid in 6pir.l iNlstnetrt ro ilt.!!erhe Kiqdom's rod powd gen mrion capacity ton 17000 MW pdyed by 2020, lndiu t@ufeteE il the clotical ed cLclronics

sator will fiDd C@d oppo.britiB bft.

Ml ng rtrd qlrrrrils polerN: Saudi Anbia is divGirybg it3

eonony and d*€lopncnr of nin ..l rcsourcca is me of ile 0rrulded i! tbis resard Tle Arabis Shi.l4 a Scological f€aturc rhrisuet hca along rh.6riF Rcd Sla @a$ @nLirs sub€r.nriat depooirs ofp@iou .!d no&pEi@ md,qts md olha minazls. M6t of tb.fodation hns bco nalpcd. Foreig ilv4toB @ offftd 6xerenplion, long r€6 cxtracrion righrs ard otber in6riv6 io ilvdl o.Fr.blishjoi v@nu6 ir ihcs fickts. sone ofthc min Dioilg p'ojccF

. Al Jlldid Pbosphal. Prcj.ct

. wadi Sawavinlron Orc poj@t

. Az AbiEl Bdit D.porit

. Kbdiguilrt Zi&€opF D@6it

. Magr6iM M€ral & Pora$im Chldidc

. Aluinh SdAr.

Oll R6en€s: I! 1424125 Q1Aq, SAUDI ARAMCO yas Fsp$ibtc for

maraginc 90 oil liclds ttrughour thc Kingdoo ilcludin8 r[c Red S€. aEa"

Motwd, 6v. oil fi€l& md a g8 fi.ld b de Pdtiti@.d Ndral Z@. cudq tbc rcspo.sibility ofoihd oil @mpalia whiL ([.n poduclio is sbrrld

betw€@ tbe Kingdom od Kuwait. The prcv@ €xtncilble crud€ oil r€sNB in

ile ndds @8ed by SAUDI ARAMCO dd tbe othd conle@ia mout d

ro 264-3 billion bels itr 142425 (2004). Th* tqd6 cdsriue atout tqlet rofr[. world's torrl Bw€s narjng Saudi A?bi! th. ou ry wirb rh.I[8esi oil r€sw.s in th€ wodd, Fufthemore, rceNe o{ es, includile.lsocialed (di$olved and cap g$) dd non-sdialed 8s tor.led 241.4 nillionstandffd obic fer by thc dd of 142425 (2004), rh€reby nltiry rhe KiDgdoE

a tbe fourrh LrScst b re@ ofg.s r.3d6.

Explordon: Duing the pqiod 1409 0989) ed 142122 (2@D, SAUDI

ARAMCO\ cxploFtion etrotu achidcd $E$ i! thc Ccmzl, Wetm bdNonld P@vi@, wh@ rbe fEl oit fietd w discov.Fd io I{ ut a@ in1409, folow.d by . trubq of oil sd ss fiel& in lhc Cotral pmvi!.. in1410, which conlain lery seel supcr lidr @de oil. Iurthd oil discov.ri.€

wee Dad. in 1416/l? (196) at Usllal4 with a op of sociated s$ at

Sbibla!, Abu Shib.t 6d Mulryh. I! rhc Eai.d provirE, @tr-assiin d

3we1 g4 ed cond@t s weE discovded ir t4l4/ | 5 ( 1994) in lh. DeKhuff,ouf lwNon in Hawiya! a@ olch.qd field s w.lt s 3wcd non-ss@lld

8as in th6 UibmaniFh am of the chavar field in Jouf rcsdoir sbadin nchorrw@t non-aso.idcd g4 w$ discovccd i! l4l9/20 (t999).

T!€ iat ld-a.ss6iatcd s6 disvc.y wd @.tc h l4l3 0993) wh6 SAUDIARAMco dii@v@d sd or rhc Rcd Sa c@lal ploin, b.twetr UDluj ddAl-Wajh, dd abo discovmd oil in MidFn a@ or O. ndth@ lan of th.R.d Sa cct. A r@ wlio, gls ald @ndeNis w@ dhcovqEd in l[. lamafu. In l4ll (1991), o qplodrory wll in Ar,J@f t6sin rcialc<t t!.cxi3rocc of @nnat 8.& pid SAUDI ARAMCO rcatizcd slre itr its fiBr

qploFtion .fon i! thc no.th *tst E rgid

The explontion prcgm is ddigtred !o l@k for orher resdd ofpEniu oildd tro!-Nociar€d ga in rhe viciriiy of thc djsrbg oit ald gaj facititiB. Aspan of its sF.t gy to achiwe hoE pofitable pedu.tio, SAUDr ARiMCOsig n.'nrry ieds.d I D si$ic auEyitrs in l4l2 (t992) to |!@.r@tively d.liMrc rhc bouda.i6 of rnoM cerciB.

Eipeline!: By thc .nd of 142425 (2004), SAUDr ARAMCO wd opeBiing

odly 25,200 kilodetcs of crudc oil &d ss pipctincs. The Cory.lyconpler€d a vcry D4ivc grid of piFlind b ralFd mdc oit, gas, drrrnlcd liquids (NCL), cord.e&s ed cfincd prcdlcls. Thc nd€ oil piFlircs)sld h.$ports fivc type ofcrudc oil toh the fi€tds tocared in the slheh,trorlh.o and ccninl producilg arels io th€ pldts for !rcccsing aid thd forqDort E tbc sa Frts of Ju,ayMh Md R4 Tuu d thc 41eh codt adYdbu o rhc w.sr.m ccr Thc sFtln dso rras}orB dudc oit ro doo.sricrcfMies. Thc Ma$cr cd Systco corsisrs ofa nctwort of condary li!€lincsud t an$on sou gas ro Uthnqeyah, ShedgM ud B€fii cs lldts, wh€E$liu is Enoved ed gN is rhh deliv@d to local siomcs.

As pan of iIs stratc$/ to Edr@ dcpddd@ on rh. p.od&.d qu.nritie$ ofasEl€d ga ad b IEr growinS domgtic dd.!d for gu, S.{.UDI

ARAMCO is inplcmdfng ahbiiioll! pta$ ro bdst ir! norssoo.Ed g{sprod@lion tbDuSh . Fojer wLich involva .o$ttuctiotr of re g4 p@esingpldis a.d aboul 2000lil@elcn ofpip.line *nic[ e now h Oc dsig! d.t6Nrn46d phrc, Ir is mricip.icd $!t tlie pmj&1 eiU i!c!!@ tb€ qislil8@p&ity ot tbc Maid Cs S]st n by rtour 3900 Dituon sr|lrt rd dbic fdrper .tay (MSCID).

Itr t4l3l1414 (1993), SAUDT ^RAMco

co@tcr.d !! iDporra!! prejer toinc6e ih. €peity of rLc l:oolsn rons Ealtwet codc oil piFlire fioe

3.2 MBD to a lwinw of 5 MBD. Tli! pipeline s)*eD linb Abqdq in

E srd! lFvi@ wiih Y.dbu @ rhc R.d S6 c@t By 1416/l4t? (1996) B@Gs Plrlt w @iving ald !|r)e$i!g.lFoxiEt ly 100 MSqFD of 5uga frotu fi.I& l6at d in the @rt, to inctle fu.| gs $DpliB to JubEil

indulri.l city or thc Anbie CnE co!!r, ftjs Y3! F.c.dcd by th. @bplctidof . 137-b! long ald 400 MSCFD piD.line fd t !d ga cdin8 n@Abqdq lo Btu gar pL!!, In 1418/1419 (198), rh. FEol.u podlcihMiEeion piFlilc Aon the Esrch Previ@ to Riyadh w iMugMre4sith r li* to Al-ll.9.nd mthc. to Q.sid 6vdi!8 r tot l did.@ of 851

l. For dtry &d dit visa r€quirenmrs sce Ad€x-4.2. For Bonomy PIu, Invdtmclrt, T6dc R@w€ ed R.guLri@ s

CEAPTER-?

RESOURCE DEYEPOLMENTS IN PAKISTANP*kt!!'s S.ctor.l Strtu3

,rSricdt!roj Thc rhnst of pld wd on tbe achievem€nt of self+rtEciercy inbsic fod it B and iDprovetuar in prcdetivity rhmugh eficior @ ofinpuis and d.dir TIF fm6 v@ ro be previded lltu@tirc slppon !d6.R6ceh ed cxtcrsior w€E ro b€ sfiogttm€d.

Policy mslc to iDFove agriculnml ptuducriviry .!d id.ome ofthc 6md!e.E inhodu.€d. A pddndiviiy Enn"@t prcgtfud (pEp) wItuched. A rcli.fpacloge or oubranding lo@ wa dou.cd. Libdl cr.dirfacilitiB Fcrc .cduc.d, The fmds weE ale providcd sdequat€ rctum forthcn pmduce itsugh support pnccs, t orda to b@st the diDn of tuirs sdvcS.tabl*. r.bltc of 25 pd @r vs unouccd on Eligir oD mti@al 6ic6,Conprchtuivc prcgtllms w@ abo plm.d for atlorstatioB, mrcBhcdruagde , @8e mmagddt dd Gouc. @sceation,

Fi@ciar ouday o! rgriculr@ B Rs ?.552 billion.r l9E?-S8 Fic6 agrirrltth. PSDP aU@tion ofR!. 8.167 bilion indidtiry 9j pd.cnr diliarion. Ttcsub,eidy d fenilizcr wa! Rs. 4.97 I bittion agd4t l[c pltu a[@ario ofRs, 3,3

billion. B€si.les re public s@ror devel@Mt oulryr 1he pnvab se.ror

inveted Rs. 5l,6 billion ar 1987-88 pdces i! tte agricultuE,

TL. 8rewth nL was 3.8 Fcni.SsiBt lhc ptan rarg.r of 4.7 p€Mni TtEshordrll wa nainly du€ ro the setbdck on ecour of devrltatirg floods in1988'89 ed 1992-93. Th€rc B a €odtable iocr.!s. in 6nor lro.tuctionduirg lnc lld p.riotl. tts podetion incr@ r2.8 niltion bate in 1992-93,

blt laler on rt i:B.d ro 9_l mittior b.les (tre lo floods ed lef curt vio!,tlowey€r, on |!€ basb of btat five y€d outplt targ.ts of 6fio4 slgarc&e,

potato d.r onion werc ex*eded while tbde of whdr, mize dd .icc wc€.cbieved to the .xcnt of 99 pft.nt, 90,5 pden1 dd 83.9 peMtrr rup4tivcly.On the orhd hald $bstddal shonfall ws exFri@c.d in lhc obut of noF

6diti@al oil sceds, g@ &d npBddr ed nBrard The overal grc*rb

pdfoI]@ce of |ic livestock $b4ccror ws 5.8 lcMnt agaiEt rbe r.€.r of

M.nuJ.durlng: Tn vlt'ond.d in tuufrctuing incMsed by 5_9 lErcdragainst the rarg.i ofE.l pwmt a ycat The mtir. shodtalt Aon ile raq.r is

att{ibuted to thc legdsalc nduleturirg sctor which could ody .nain !grwth 6te of 4,9 pcj6l agaist rh. |.lg.r of 8.0 peEcnr Th€ sbon frl s bc.trribubd 10 law ad ontq situarion, infr"sEetural 6ne!"irts dehys iD rhc

comissiding of nw pojars, non avait.bility of Rrp nalqiats ed a wtd-

Tbc Prodrctior rargcls of mio. tyB, $8e, soda dh, €nric sod4 cdron

ttm cottd clotb, ttuts ed bu$ wcrc &bieved dd in a fcw 6!ee cxcc.t qwhile shortfall wa expai@ed in the prcduclion of vcg.rable ghee, cdGnf.itogenou fe.tilizd, srel biuet, rol.d sheels, ciglrett s, tE!1or3, Dspcn,bic}lLs ed p.IrolM prcducts. Crewrb of €Igi|Eidg ed @pital good!

indutrie ws fd b.tow lne exF.lrtions,

A !M ofRs. 10.0? billioD w4 alloorcd io vdiou public CoiloEtioB in th!tuDf.cruilg cto., for BMR dd cEdo. of nd ep&iri*. Most of itcpl@cd prcj-lr w.c @ql€t€d by thc dd of rL. 76 Ud.

Fi@cial ulilization uder the PSDP in the trdlflcturitrg saror @hcd ro ps.

6.352 billion agaiEt rhe sr8ct of R3. 10.07 billio @fl@ting 6j p.Mntutilizatioq Out of rhc ltitianio! of Rs. 6.ii2 billion, R!. Ll86 bilio! w4utiliad tbblgh thc bldg€tary .t v.lo!'Ml prcgEtlw ed rI€ @iring Rs.

5.115 bilid ton Public CdpohriN Pros@ indietinS t2.0 p66r dd51.0 pcrcelr uriliation of rhe buda.r{y dd dpohre |!sow6.

Agaimtilc invcatne targel ofRs. E?,5 billion i! thc mdufrctu ing s@to. (at

conslant pnG oI 1987-88), the pri{r. irdutrial invstmcnt .fuut d ro R&

145-3 billion ar 1987-88 pn6. FoGign lrivatc invstuar in r[ctmufactlilg Fcror e6 Rs. 2? billion rgti6t the r&ger of Rs, 26 biltid at

1987-88prics,

Mietarr: IlE Sa@th Pltu placcd gmt mphai! or cnlargiry the prcituction

ba. of min4l *[or thelgh Elid .xp.sio. of lool ed f@ign invdhar

DuiDg lnc ?d Pld pqiod dife..nt collabontire dev.lopmdt pbjdts w€E

started. TLe prcj€cb bave helped in the rraining of CSp, PMDS ed RDC

The s€htb ?ld dl@rcd Rs. ?.0l2 bitlion (ps. 3.122 biltid A.n de budg.r

6d Rs, 3,89 biUion ton l[e Corlontioi! PreC@c) for rhc dcv.lopnd ofmineral sabr. A, momr of Rs. 1.597 biUion (at coiriArr pric6 of 198?-88)

ba bd utilizld againsl lhe budg€llly pbvisid of Rr. 3.12 biltiol R& 0.625

biUi@ ba ban uriliat agni$t lhe rargd of Rs. 3_89 biuion b itc public

corponhos prg'ime Beid6 l[. Pubtic sc.tor, priv.t s6ror invFtcd Rs0.903 biUion in Oc oincral secior.

E drgri ExpcditioB developneDt of indjgtuB solltg, conpEh$ivcdcrgy pncilg policy od 6B.natid of o..gf wft lh. min idgrdi@c of

Oil dtraction in oe coutry bas inc@s€d ftom 44,684 barcb pd day duing1987-88 to 60,000 b@ts pa day iI 1992-91 agaitut rh. targct of 76,000 BpD

showitrg 79 p.rccnt .chiw€n6t Aboul2l? {€lls w.rc drilLd dring tbe plepcriod agaist rb. Orgc! of 375 sbowing 57.9 pet@t .chjcvamt ofthe targcr

As Esadr sas, th. Foduction (av6sc) inc@d Aom 1200 MMCFD 10 r 98jMMCFD. About 700,000 new gas cm@tios w* ptudded duine the ?ri

LPG production ws only 303 roGr'.by agai.sr rh. ptaa rarSd of 5t g ro!s/&yindicating only 59 pecnt achievement.

Total isrrll.d qp&iry for pow.r inc@s.d {ron 6?94 MW to 9?86 MW.Nuba of i!. addirio@l vilage cleEificd re 1?,447 aSai.st the pld roSdof 10336 showitrg 159 p.rc@1 achjevemoB, A loral of2.7 millid n* .lccricomcctiols w.rc provide.l duing ?6 ple pdiod.

Rt .l D.e..lop^.,t: Fd rhc dd.topde of nEt e!!, a cmpEhdlircpresme involving d outLy of Rs. I 12.2 biniotr *as ovisg€d i! th. pt n.

Ior tlis purpose abolt 9000 K,M. roads werc c4trlctcd udd rhe @yfam-to-tuket oadi pro8tue agaiGr th. pla4 targer of 8500 KM. Und.r the

l@ple'! llogtunnq 1850? sbcncs rt rjlg ro diflalot s*rors w@apprev€d duilg $. Fio<t Aom Me[ 1989 Dpro 66 AugNr 190. Sinilfty,hdd rhe Tmer-.-Watar PreeM., iniriatcd in Ocbbd 1991, abour 329? Ischemes conprbing tual .oads, repair of sch@l buildings, sred dninaSc,

Mrd $r'ply, villegc electrin@1ion, health facilitia, comuity @rt es! gnv.y..ds dd mutruction ofbridgd cic, wfr lppmv€d upto Juc 1993.

Undq @l cduqlion, about 9?50 DGqlc dd 18900 primaly scnook w.rcco6trncted aSai$r tbe target of R!, t5.000 nosqu. dd 31152 pdrlrrysch@ls. Bdidcs, 3780 pin'ry dd l9j0 niddle rchools e€E npshdcd !oniddle ud higb lcrcls Bp@livcly lg.iisr rhe &g.r of58j0 priDary and 27?5

Itr the Ml tslrh sub-sror, 1650 BHU3 6d 106 RHCS re e&Stisb.d

against r[. PLn taracr of t882 and t2t RHCa. Undc. rbc nEt mte. ard

sditatior preg.me, 20 nillion zddirional p@uLtion e* snppti€d drirbngwatei agaitu1 th€ ra.eet of 3l nillion, sditotio! flcili1i6 w€rc pmvided to I I

milior additioDll p.ople agai6t ll|c rarget of t? milion, ASdnst rbe targ.t of10336 vilaedabdis, 17747 villaS..hbdis wcE .tatrin.d stowins o8chiryd@t of 169 pcl@r

Reeiahal Dey.loph.it: lhe a]s wbich ee ietudcd in the rcsional

developncnt pld e ad (absir, Northm Aft!5 ed tbe F€dequy

AdDinisLEd Tdb.l A|4 whi.h sh& certab @motr g@physi@l t@riondd eommic c[letaiiti6. DuinS rhc pte psiod, .lfutl of n!. t3.2

billion al I9E7-EE p.ic6 l@ ltilzcd showing utilialion of 66.3 p.rcdr R!,5-2 bilio! wcE allo.ated for Azad Kdhnir again$ which mouts of Rs. 3.5

bilion w@ urilizcd, Northd A16 *ft prcvi&d Rj 2.? biltiotr our ofwhich Rs. 2-05 billion eeE trtilizld. Aeajist o all@tion of Rj. 5.j binion forFATA dd FATA./DC e uounr ofRr. 3.2 bilid r@ uriliu d.

Ttuspon & Cohhunicatiod: Thc Scv€nth pld orFd fof the rcbabilitation

of Nets ed a moderr exlmiotr i! the ca!&iri6 of thc Roa4 Railmls &dton sLwrors, Ttc Pld dvis.g.d irpmv€tmr in ,aiyed rEfrc ro

RailMys ed shon lad in 1992-93 rhrcud dl@ting long lad neighr Falncto RailMys dd shon l*d faftic !o qdj. Ilduction of Drivde *ctor inhigLMy d€velopn€4 shilpitrg, roads cotutrurioA dom€sric aviation servi@ed telecmui@tioB @ aho avisgcd. Rsurfa.ile ed @inrlMe ofbighmts od d.v.lopndr oflon f.cilirie fo.onraiM r".trc w@ ro b.hdert k€n. Bcaides noddizine K.fuhi shipyatd and @gin€ilg wort!,po$ibilitics of dcv€loping existinS rivd dd ldd n rporks for inted@vigatior Aon Port Qain io Kalablgh lnd lllorc werc lo b€ exDld€d.

Major nilwayt prcj@rs corlptetd duing th. ptd iDctudcd Le@otivcF&rory at Pjsalpu, Ifulfactldng of t58 pasdger c@he, rccomisionhgof 3? DE leos, ptuull:t@r of 5 DE lM@riv6 s w.lt 6 Rlit @wd of298 KtN. md slc.pd rcncwal of357 Ksg Freight raffic, how.rcr, did lotitrclle FiDdily dlc ro op.dtiml jneffcidcy.

ftc hi8!w.y eb{ator e.! giv6 . mjor rtur N.tioEl High*ay B@d(NHB) wa 6nv.n€d inro a National HighMy Auronry NsA) @d givdreser poweE. Amory thc mjo. prcjets, wo* or ile upsFding .adimprcvenent of rt rndu! Higtqy (Nario.at High*"y N-55) .s rh. atredicNorth-Solth link on the W.st Bank oftuvq Inds ed duli%tiotr of53? KMof Natioral HighMy N-5 undd tbc Fouirh His[way prcjet ftnd.d by rhe'woild BanI ws acc€lented. A sieniticmI dwclopment eas the laeching ofminn!&@ oricDted lbjccls undcr th. d.relopn nt budgct nan ly'Mlintcnance Backlog Rcduction and .Resurf&in8 md Srbsitedns,preg.am*. Th6c pojelsi prepsr! to ove@De ll. tmbtm of slo.arg. ofmiltc@ce tunds wde tintuced by rh. World BdI udd rhc TramponSectd L@. Eiforb to idusry pdvale sqto. i, [igbwy coGirucrion did rcr@teriali4, Wo.t oa rbe noroMy b€rsE! tat(El5tafubad w.s initilcd,about ?329 Kru of new bads were coBhuctcd ad 823? Krbs of qisdng

lte oa-going prcjer of tdt esiD (pber) *93 .ldo€( @Dprct d. cw.trfFisb tldbou &d the Mhiport vse also codplct d.

Itr civil Aviatid, rwo mjor p.oje.rr viz, rcw imin l corpt€x d K!@bi ddAft.a.tical comEuic.tioB ed conhol (AC&C) sysraa wcF @D!r.tcddd old mway ar Linorc Airport up8nded for AirbB A joo 84 opeatiotrs.Tle PIA &qui.€d fou AirblFs A3IO.3OO,4 Bed lotro ! 27 Airclanrduing r!. ple leiod. Doe$ric ttific @icd by pIA f.ll sho.r of rhc pt|r

|.'rSd while int rmd@al r'atrc 6i.d hy it de.ded rtc plan targ.t kiEr.r.ctor Ms ildBr€d in Airlin bsin6s.

Thc insiallation of 1.128,000 Dcw ietephone liqs wa close ro thc ta.gct ofI,150,000 rcw lines, indicatilg d &hi.vmcnt of98.l pa@i privat &ctorwhich ind!.ted in r.leoll]lMi@io6 or Bnih tade ad Tlurq (BLT) bgrisiEldlcd 500,000 r.l@hoDc lin6 duing rbe ptd Fio<L T&T D.pa.tocn! m@!rcnd into Pali$an Tcl@muiqtio! CoQoation (pIC)_

An invasltnet of I{s. 26.654 billion (.i 1987-88 pricct in th. F.d.6l &dprovincjal Public S.ctor dd 8l. 39.569 biuion for public S€cror Corpor.rion

wE mde agaiut rhe pld dlooiion of pr. 29.2 biltion dd Rs, 32.30 bilionBpdiivcly. Duing lhe !,le p.riod Ri 27.368 biltim ed Rs. 2E,?86 billioitr?s uliliEd for thr Fcrt ql ed Provincial publi. S.ctor dd public

Co.pontiotu progtllMa. Utilizrtion srood .r 93,? pe. cdt ard 89.12 pd @tiD tbc Fcdc6l Public S@td dd rtc Pubtic S6ror CaDonrion ilspccriv.ty.Thc ov@ll uarlization % 9l.3 pcr ccor.

IrnAatut astl Dtulztga

Dlri.g the ?d Five Yed ?lm dri MtiFloggirg dd satidty conrrol

ProSann|. ws gih a hieh priority.

Wdl( on Ch.sm tught B.* Cotl on pbae-U dd l.r F.cdd C$dRcbrbiua$on Prcj@ls B udc. ral6. Abolt 5,500 nrbewels w@ iDsirU€d

o! mtal bdis in the pnEa. 3eior B6ide, My snall irig{io! $h.cwm .x{ut€d. As a r€sdr, 1.53 MnM lddirionat Mter, iFiganng addiri@ilcultiv.blc lrnd of l 012 nillion hecu&s b.@e aqitable.

To conscre irieation Mre., Irigation Syst n Rebabititarion ?roj@r.I,Cobn rd Wat€r M.egeedt ad On-Fm Water Maag@cnt preglllrms

w.c inl9lcndre!. The Co@d Wat r M6!gd6r ltoj*r &d phlselt of

tb. On-Fm W.ter M!$gh-r (OrMW) ?rog'allj]G brv. ben conpter.derl Ph6e-lII doveiail.d with !ba!c-ll. thysicll ac@mplishmqts included

dovati@ of 10,000 w.td oN6 dd tdeting pEisly 128932 dB (521?8

About ll SCARPS ald a Pilot SCARP T'uirior pmjct in pujab bav. at$bc.r cotrlllcL4 which woutd prct*t 2.13 MA (0.86 MHA) of disdhos

A sun or tu. 21.5 biuion (at 1987.88 d€O wa3 utilircd duins rhe 7'i pr&a8.in$ rhc Pld allodrion of Rr 28.4 biUion rcfl@titrg ?j_7 perc@t utilizarion.Uriliatiotr of ADP alloorion hd, howev6, b.m estinar.d at loj pGGtrt (ar

Tte Min goals of the sc.ror weE io Fomolc Oo(hrctiviry lnd coflelirivensir aSdculiure {nd indBtry, md io .nhdce rb. .fficiacy ofrespon, ddgy,health ed othe. sato$ by giing boost to tcchnologi.al &velopdar etrods

Thc Sevenrh Plu cotrld not achi€vc tuUy rbe i €grarion of Sddce adTehnologt, wirh devetopnmt plas ed ptuductiotr s.atos. S@e pEgB,howevet ws nDdc in inprcving the idEductue equiph@t dd otherfacilitiB in iBdturi@s tike rcSI& pc{T, PCRWR crc. so@ pot@tialrcv€nue C@ed{ng pnj@r have b€.n sLrd by MO, PCSIR, NCTT, CAMB,NIE, PARC, HDIP, NIH dd SUIARCO .rc which is a b€.pMg &wds elr:f@cilg ofacrivitid of S.iae & Tdhmlog/ 3ftto. No anra.trE mc€nrivevcrc gryen lo thc lriE|e scclor 10 encoMg€ invotnot in R&D_

Urdfi th€ luhu 6ouus devetopmcnt pregn'm€ 88? schols w.re *nt.broad fo. highcr studic! leadirg ro ph,D in hi_tech fi.16 lo ove@&e lle

d€artt of thc re€hni@l comp.ren c. DuinS Ple pdiod 262 shd4 coDpleted

lhcn snrdies whilc 252 r.tucd io Palisran,

A su of Rs- 2.25 billion wa8 allocatcd ro Sci€ncc ud T*hnoloS/ agaiBt

which lhe sd@ted expenditur. is Rs. l.6l billion (at 1987-88 pnce).

IITJMAN & PHYSICAL RISOURCES DEVELOPMEM TN PAKISTAN

E.luc.rion & TnininA: ln 1987-88 pricca rbc tor.l €4mditE of€duori@s{tor ptug'?lrrl@ w4 Rs. 19,0 billion ag.iD$ thc pbD a[@.rior of R3. 23.t1

bilio!. TIN in .sl i@ th. ov@ll nmcial .:p.trdituE hrs bed 82 p@4or lhc Pkr dl@tio!, Cob!.qlddy th@ bAv. betr short-Als in the

&hiev@cnt of pbysical rargct. Somc of l[. inporrart policy initiativ6preposd in lbe Swath PLr could nor b. illPltui.<L At pri|Mily ld€I,about 21,000 pri@i6 ed I3,OOO nosqe rch@k q@ Gi.btistcd agaisrlLe t rg.t 0134,613 priD.ty $h@ls dd 20,000 dosqu. $h@ls. BDildings

*de c@hrrcd for 16,500 sbdrdts scb@ls aSdEr r!. t rg.r of 20,075_

Abou 13,000 cla 1006 v@ addcd i! ric .xistinS priruty sh6ts agaidrhe tatg€1 of 8,750. Abour 3. I nitlion .ddiriorrl .bitdrq (itulrding 1.5 oilidgnb l@ cm[.d ar rhc pdh!.ily Lrcl sgainsr rh. ple raryct of 4.6 milid(hcludhg 2.7 uillion gnb). Major r..so$ for shodfalt of about 32 p€rel| i!ile .d,Citio@l cdolm.lt d b. anributcd to soci€@looi. fsctoN rbar

inlabl the lov income fMjlics Aom s6din8 U€ir ctil&cn io rhe sch@I, bigh

dopout rate &d non-cMctnenl of conpuhory p.imuy scbooling lcgislrtior

lroposed in the Sev€nt! Ple,

Duing the Ple pdiod, about 4,201 prin.fy md 2,600 middle sch@lj w@npgndcd lo nid{Ic dd secorda.y lcvll agsinsr rh. rdget of 6,500 prjbiry ed3,?00 niddle scb@b Ep.ctivcly. B.sidq ll0 nd high shools wmstahlish.d, inr@diat€ clsss p.€ add.d in norc rhd 168 Fmndarysh@b rspectivcly. Two Diltio. addjlioMl stldoB wre mlled at

s4oddary level in classB \ar-x against the tarS€t of l.E8 miltion. ID

q@titrtiE te@ 100 p.@t of thc .mlm@t rrScr ha bd &hiaed bu1

mlch cnai6 to bc done or inprovi4 qudiry ad r.tevatrc. of s.condary

SoD. h€dMy was md. toqds dilding studoas ro t chrical odv@a0onal stsm. Twards rhb €nd *ort' weE sr.rted on *trbtblrndr of29 loly-tebdqn4 dd only 4 of then wft @nllcred. Wolk on th€ ltminileiBtituijos is expat.d 10 b. @bllclcd duitrg ih. Ejght plan.

The S.vot! Platr pdiod also wiine$€d a nmb.r of initiariv.s of l|l@g€rial@turc for ihe accelcndoa of€ducati@l devetopn nt, Th6e includc:

L Edu@od Foudanoo wm *Eblnbcd for ctromging lbe pdv.r.*ctor's palricipatio! in ln. .dablislnhr of lew .ducarion.linstitutiom oD non{()m@ill basis, lrniol&ty in rhe .ur.l @N.

J-

2. TIE "T@.d-.-Ward" prcgme ws tadch.d. Undd l[.p@glllmq l.eislatoB idodry lhc i@.diatc n*ds of ibc p?opte at the

8a3em1s Lvel (inchdiDg, most plmilcnrly, eduedoo) aid develo!prcj€.ts fq inpldsrarion {Nuc! nomrl chadclr udd ihcn

Forcig Nislan@ for educ.tion sdror ws Dnte avlibbt. to ttEprdi!@s ov.r ald abovc thcir nomrl ADp shaFs.

The lay scales of $hool tclcheB r@ upgndcd by orc srep, dd ihcupp.. a8e linir for appoinhor of pne.ry scLoots Ecn6 v4

5. Thc Social Acrion prcgm. (sAr) s lau.le<t in 1992-93 toacelmre inregded developm. of s@iat sdtos_ Basic cducario!,

hcluding pnnary €ducltior fiscrion t tircracy dd feiatc .duMrion,

fom the btg.sr €oopoenr of t|le S@ial A.rion prcgtlrma

jt arrri Acaist r!€ Pld larg€lof 1,882 Bsic H.ali.l unit 1,660 uirs w@st blilhed rcfletin8 88.2 pdar rchi*ndrg t05 Rural lldlrb cdteBw@ $tupagai4i th.larcctof l2l E .cting87.5p.rcot&tiev.E6r, onty50 Urban Heal6 Caid Esai6t the targel of227 werc *bblGhed.

Agai6t the r,rg.r of 16:52 Eospirrl b.<ts, 12,006 HGpiial b€ds mit 17,528

doctos agaiGt the iarger of 17,535 wc@ added. Ag.inst th€ hr8.r of 800

dcnth4 and 10,240 NN*,7?5 D.nlisrs ed 8,?6E nMcs wer€ ach€yed.

SimiLrl, 21,259 p&a-medi6 .gaiGt tbe brg.t of 35,950 e<t 26,635 TBAS

aSdBr rhc raig.r of 27,150'4tr.in d_

16.8 million Chil.t6 wd€ i@uikd agaiNt th€ target of 18.8 millioo, udano 43.3 nilion Packcrs ofORS rgliln ibe ra8cr ofj0,4 oilion packeb

Firdcial utiliario! of R!. 10.0 bilionRs. 12.8 billi@ for hcatr! seto. is abour

udd PsD? asaid the aUmdioa of

Woh." Dfulopn nt: fte Mirisr.y of Wotun Dcv€lop@N sponsored avdicty of Mall prejels fd vo@n dcv.loln@r in ellaboEtid wirh F.d.rar6d Provincial Lb. D.partb@t5 &d NcOs, Tb6. !rcjels includ€d

comnunity/w€hre cent€B, dispesari6, eye uils, Sjhc wms, oay w€ce.r4i working womcn hosrcb, industrial homes, trsiritrg @rdB, w6ter$pply schm6, womo @!.stiv*i .tad farah/eME, tcgal dd cdras,cEdit schm6, Iitc6cy/.du@rion cdtd, tib@i6, srcagrhedrg of f.dale€du.atio.ayt@hnical institutioG, gont-in-aid for woma prucM€3 mdNCO!. Sp€cial ucdii flcitities for woma wcre arrllg€d rbbugh rbc Fisl

Against the ?ld allocatiotr of P.!. 900.0 rrillion, ioul uliliation i3 $timarcd ro

be R!. 648.493 nillion (d 198?-88 p.ic*) indicatig 72 p@@r utiliation

Poputd.D @.1 S@i.t Plarning:'ft. min objeliE of Populatid WclfinPmg@e duing the SeMtb Pld w.s fcnility Drlag.lmr by hlutarybirt! inldals md birdr pd6ti@s tlrcugh Duti-sionl a.tivitia s w.ll smldd & child halth sFt o. Public, priE., NGO and 6@ial s!o6w@ irvolved in s@ice dclir.ry.

Bin! prcv.ltion larg€l for Scvcnth Pld ws 3.17 nillion. Tlc preerllrmacbieved 73 pelmt r..gets by prcvenring about 2.31 oillion binh_ Th.

forcgoirg birth p@vdtion Ms .chi.v.d by $rablishing 1,505 wic. ourlcb,

iNolvilg 3,168 public i.ctor hcdrh ouU.ts (f.dchl dd prcvilcid), 580 ourtct

of @o-Govelm6t l o4rniz.tjoE (Ncos) dd 5,mo Tndili@t BirllAnddaft (IBAS), 2,500 R.si3rd.d ftivlt M.dicd Pra.dtioD6, @d 4,000

H.t@s ard Iloacoparb9 Tb. prognefrc abo dtablishcd 6?,000 !.lcpoilts i! ftc c@l]@id mcdi@ydng sro6 lbrlugh tte prej*i cntirt.d

"Sorid Mnrketilg ofco rac.ptiv. (SMC)".

The Scventh Plan povisiotr for ihc progamc \rB R!. 3.535 billid dd i,otal

PSDP allocati@ amuted 10 I{s. 3,040 biltion at 1987-E8 Fic€s. 'ftepregme how.vs, utili4d ar carimr.d eour of R5. 3.047 billio which i5

100 p€rcdl orde PSDP ed 86 pcrc.nr of&c pta! dl@tior

Bdfloynat an4 Ma4awt: lniti.l .oployD@r prcjdic or rb. S.v6tbPlar ildioted $bsbnt'ral iicrcslcs i! uncDplo,ftDt in lhc fom of opca

employndt .nd udd G6plolr6t. In viw of low cbdiciry of.nployfudt witn Gp.ct to CD? trcwlb, rtc ?le dptasiat p@oli@ ofrcl$ivcly norc hbou intcnsivc leios 10 atl4iat the €ipedcd

uncnllolD€nl pBsws. For tht purpos., ihc Sev@tb Plar postulared a l0-point rtdeey expected to g@@te 6. I million job€.

Mort of the lbvirioB of ilc t0,Poirl Stare$/ c.nld et be @d. .tr ctircduilg tIE fiBt tbG y6. Scrcal frcror! l@ cloBibL fd rhi!, !i6!thft es sde delry i! rtc pFp|Erlon of policie ed projds. S4@{poliiiql ddelopnac illibilcd @lriruity of policy ard d€v.lo![@iprcgtue; T!ii4 EdEri@ in rb. fcign stld prchteit udertiti.g of !dprcgtzm.s. Ehploynor sinsiid dct rionrcd duiIa tte nst l}ee ys,

Accqiling lo ough esri@1cs, .boui 3, 122 nillion additionar jobs veF ftltcdagaid l!€ ?d PID ta€et of 6.1 nilliol! refldinS a!o[ 51,2 pcrccnt

Thc Saath Ptd ? @t d Rs. 2,56 billion fd 6c d.rclopllnL pDg"]]rc Drnc lDtrpoE s6ror, !g.i!st which R3, 1.0?4 bi io! d 41.8 pcenr *!r!..rudly slqt lrw nrilizarid i5 midy duc ro ret t&uces pcilio! and

iEplddtatior opabiliiy of Uc scror.

C'ltnrc, Sports Mtt Toatum: m. S€yenth pL! foUowed d iltcghtcdappoach towards c nld d.vclopncnr covding !I inpondl dimcdsioN likcprcsemrion of cllrul hcriiage, histodcal ed aeha@logical B@ch, culurilhilrory otbropolosf, ads &d cnto ed ar.hnecrrc. M.jor portion of pSDp

dloclrion pmvided for MonMdrs. Th. mo!€iiu of euid<-AzaE houlc

strd ftliv€s blilding ph!$ I w@ @mpletcd The physicrt wo* on

cGlructid of 2 s!6 uchcd rd@@ 3tagc sbiL gl@d Mt r @t ot *dtof Mohdja<hs mIlll]MG broush dom rh. qla leyel to l0 fr MstroJabba skiiDg twn * @BEu.Gd. Wort of Ktinh Nltioat paik in Sildhwlr rd ompletion. Thc coNructi@ of n w norels ar Ch@ Sai&, Sb!,Khlzdr ed AFbia w.r. .onpt.tcd by PTDC. Bcaid€s, €xlosion wort at ihc

cxistirg notels at Skardu, Zianr, cilgii. BeslDD, Khuzde dd Texila wcr.

also conpleled. Morcove., road sid! facilitie! ar Brcn on I(XH wcrc

colmss'oned. Atr uom! of Rs, 74.64 nillim w* sp€nt fof youth

.leyelopm@t ptuglrl@e. About 85 youlh stiu dcvelopmt @!tas all ovqthe coutry dd the youi! hostcls si Qrcnr, pshaw dd tshmbad *E@plcr€d; a E6rt stadiM .t H6itpu B at o .6ifutcd. Sioilarly,n6cu g.ud6 ar Lok viEa, IslanEhd w@ cmpter€d ltowvd, rbcewa no rorth-while pbgB b rb. @drlction of lDrematioMl Cod@@g.ll, Clllnrel Hsirag. dt E !i Mulraa euctra petblwe md S.hwd Shuifed Natio.d An Galery,

itlur! M.did: The Sevoi! Plan aincd al.{pmdbg lhe colmgc tbrough 6diomd tel*ision to the entiE population, The rnajor conpleted prej@1 duiry rh.ple was tbe 2"d television cbe)cl udc' a Japese gmt of tk. 50? milioialo govdlrl@t suppon of Rs. I 19 millioo. Bcrid6, tccbaical ed pbdlcrimf&iuri6 at K.funi, hhoE &it Islm.bad TV @te6 w@ also @DpLr!d. Aadeq@tc nuds weE lor ahitablc fo. rhc ndio sub-stor. As r r6ulr short-

mvc Fr6mitters @uld lot bc add.d. Onty ore 2OO KwlV{W trdslin r ar

Kluda bmwht a siablG ar.a of Bahchisran Edd Edio @v€BgG,

Morcovq, rwo nev sall poycr rnnsminG ar citgit ud Failatabad and

village broadclst€B at Sibi, Chirtal and Abborbbrd wft add€d B€sides, A?prcpla.cd 58 old ieleprirtd, ed modemized lhe news sathailg sysien,

Phficsl Pl.bning & HoNirgThe 7d Five Y@ Plar aim.d ar Fducing gap betw@ de@d ed snppty ofhou6 EEllair wa given to rhe povbion of holg to rIE stclcrtess ddrow a@m. cftlps and !@ri!g thc baic n cds of drinLing m&i ddpbviding wdg. dd tuiarion facitirics,

Agai$t the ta+et of dev.lopMt of 650 rhousdr ptors

lhoudd plors w* d€veloped. tn @l @s 2,9 miliorallotlcd to th€ low incone shcllcrl.ss agaisl r!. rarget

larget of inr'roviry the living conditio$ of Krlchi rbadis w achicvld ro thc

dlcrr of 80 petqr As Egads rhe ptovisid of ster supply^lnirltidfaciliti6 itr ubd al4, the larsets &h.v.d w@ 85 pddr (wt r) .d 60pd.e Gcp.nse) 6!edvdy. In rut:I a!6, 50 p.|@t potDtsrid b4access lo wat r sulply ed 17 p@di ro seitad@ Acilities.

Soclal tv.Yarc: The Swcnth Pb! whilc enrh2qrirg cxpedilg etioulpbdEtio! tbmud devetop@r of physi.rl llsr)lftf6lici6, n6ls dd n{-"s.ry p.o8t!lu6 in ddd ro D.omor. Ed ab.m.Seill W.lf@ *dic6 for bctcllhr of rh. physidlly, sirtty eda@onically hddiEpp.d poput.tion in the outry. Tt Seist W.lf.cprcgnmd hlve b@ desigD.d in c qy th.r they h€tp to hadoniz. th.forc.s of scial chege dd offs€r rh.h sdv€se rcprusioN caued by !o$ldw.loFncnr pto6B. Zrlat ad Ushr syst n fd h.tping l!€ irdigdt dd p@t!m!n.d in opdti@ Tbe poticy !o folow a @ltrnontivc cffon of the

Covctu.nr ald thc Nd-sovftlMr Orger.ri@ (NCos) i! imptcnc .lidofs@i.l W.lf.E ftoslr||'rlc $s 6fd!cd.

Alound 300 Social W.l&e hstitutioB wd€ 6tablis!€d duinS rhc plan

pdiod. Thcsc inslitutioa inchdc 13l Socisl Sflice iutitutioru (33 lcddal &9E ?Evincial) in ldiou fict& tik chld wel&E,,bul! rclfrr!, womdwcll.I!, @muity ddelop@Dl pnicnfs wel&ft, sLff wclf&., wclbr ofth. .g.d Er.- lr abo incMcd t69 inni iG tu speirt Gducrtid edrcbrlilihtion 3dic6 fo. rhc dieu.d pcls@ (99 F.d.nl dd Z0 hovifti.l).Tt social wc|faF s@tor ws lrovi&d u dmr oflts. 0.?94 biltior arairstwhich &, 0,602 bil[@ w6 uriliz.d.

'wllilc the grcetl targeir w@ lot rchiev€d, tte oveEn p.donn ec wlshtilfacrory, ODP Cre* !r 5 p@rt a trd. agricutE 3_E p@dr dd@u&cnrinS 5.9 pecnr llvcshtdr in fxcd N.ts doutilg ro Rs, 682

billi@ qcc.d.d the brg.t of Ps 660 bilioa dE ro a sugc r FEc

invdtn@t, which .xca.lcd Urc ta4ct by 19.6 petlerr, $bsanrjd advd@sw€rc mde in ph,sical intast$cturc. Cs lroductiotr ircr.ed 34 pdc@r ddpow€r Senenti@ by 44 percdi. Rul ele.trificario. wa wetl alead of the

target 18,265 vjlhgeyabadis werc clcctrified conped wil! rhe phn l{ger of10,336.

h tle 6Dl year oI the plm, a Social Acrion ?rogMe eas taucbed toaddrcs th€ stubbom negl€ct of€ducarioo, h.alrh, Ntririon, MI wlra snppty

dd smitadon dd popularion plditr& Th. f@B of rb. pngl"lr@ is ormm6 ad @l d.v€lopmcdt. Ir mphsies inpbved detiv€ry slsttu md

e@ter p.nicipatiotr of 0& comuity.

In te@ of n&o.conomic 6:ahcs6*, p.do!fuc. ar th€ irr.rul ddqr.mal ftdt @ not upto tbc n..t. Th.ld.lof fMt &dcir tw &on 605

pdor of GDP ir 1989-90 ro 7.9 p.rc4t of GDp in 1992-93. Thft B a

Epid buildup of do@slic dcbt which i@B!d ftom Rs. 290 biUi6 in 1987,

88 lo Rs. 605 biuion h 1992-93, a niffi imgc of rtE SrowiDs dcficib_

TIE ddelopndrs in thc Middl. Est .wt Esior in J4&, Eu!!€ udA]die h4d e ad]*e cllel on b.te* of paF.!rs. Ctncnr a.@t defcitwsl up Aon 4.4 of GDP in 1987-88 ro 7,t p.@nt in 1992-93. RrE€e valu.

wa adjut d by 32.2 lcn Dt (cMut.rivcly) .g.iBt thc dollar, bur rne psition

@ined urln€Eble, panicululy during th. culf crisis.

Th. siructwe ofpublic cxpcnditurc dcpiclcd r sbin to &e @Doraie s€cro, TtehvestrMr by prblic corpoFtions wcnr up fron Rs. 49.0 bilion to Rl. 69.8

billior in 1992-93 in r*po6c to lsgq auionomy dd dclinling iiDn rlD

'Ite @onotuy w.nr ilmugh a pMds of d.rcgllarion dd libenlizij@.F@ign dcbsge egulati@. sdctioning prcc.dws for indurial uils md

t!& lolicy rc d.cgulaLd ud lit idircd. Pri@ .oltots wei! tlm\rd rndrubdidic,s redEed Ttc prcc€ss ofEtioldirirg rrrjtr $ntnrE w$ $.rcd.

Scc!fi x'ni.[ q.r! bithdto rs..rcd fd pruic !.cla re opa.d ro Finbilvcrldell' Thd. ii.ludcd po*!! t@dtio, reLcoriDEioti@B, 3hippi!&.irlilca md e4ort of rice ed coron. pam[.t to lhis tvo ba*! ed 63

ii.ll8tid uils scrc Fiktiz.{ Ttc pr!c!*r ofdslgll|rid dd privrdzdd! lit lyiob.@lid cd i! th. Eiglrt plm.

CIIAPTER.S

SAI'DI AXABIA AND PAKISTAN -POLICIES OF COOPERATION

Tbc KingdoE of Saudi Anbia is thc pi@dils Illoic $aa in lh.cod.aporry comuity tlrl upholds th. prilciplca of rhc gloiiour IslruicSldia'a a @atiani@ for Fguhting rb. rLrion3 bcrslq rItD govm. and

lbc Sovdncd lnd $ r E $od foi b.navior i! borb priEl! &d public lif..

POIJTICAL SYSTEM

P.ldrbn: Poud..l Eld.nrr rld EttllclgP.Ii.t ! pt!@ts . p.rticlLrly diffrdll ce fd p.liticrl .!rlFis, ber@ n iro id@logicrl sr.t . AD id.ologiet 3br. &€ mt 4ily lad b.lf io

cdlpdi3odl witl ld-id@logicd sbrs. Th. Flitiol sylt d! of M-id€ol%icll sbr.s pmc..ds sldg secukr linca. b rtc id@l%icsl stsr., by

coltrl it pred! dodg oc.l lind. Sml . lystd! the(lfoG, b to bc

.!.lyzd lol deoldilg to rr".ditioDlnDdd bur accordiig io MFid..ldicboloEi6. Th. idal ofth. p.rf.cr IslrDic st t!, tu $t fortb .! . 8ql b.&hi4c4 bu! thc FlitiB of r!. curut poliricd sy$ctt In.kc fd b€lic

coDr.ldi.tio6 eilt rh. id6l, pmducing p6p.tu l .o.nict iirstio8 {dvardiog th. @utry'3 poliric.l ilr.gFtid.

?oliticd dcvclopnclr tb@tub ofto fdl ilro $rf@ r"po i! srudyilg th.politics of sh id.ologicd 3t t s. Otr rbc politi.d sorha. t!.y 6nd |@1politicrl plnie, E coBtituiid, . pdimdt wirb rwo loucst rcrin8 a.d

Sddl clcctios - all tIE viriblc ltNctuB of . Wcsrq! dc|redcy. On

&bilcd aDlysb of th6. rturuB ir tu llo @rcludcd thlt r d.noq&yap!rcaching ]l/cstq! 3r.ndlrds i! pEscaing in ! n@-nrc$cm courry. Bur

sucb !ttitu&3, inllicidy d .rpli.itty, hlvc & inblilr bis b-!u!. ihcy alsMc

thai Weslem political srutues and inslitutios a.c lhe g@ls to \rhich all

coutris nEt rspiF. Such studics, theiefoE, €irhq iSmre or the uaware oftbe rcle of id€h re a aleMtivc polri@l rality srroDg aoug! ro ltrrci

h order i. ud4rand ra&slant poliri@l stsrer onc nut f$l srudy how eUe @l deviar.s ,ioD rhe iddl. Tbc r@t colrexr @ntaiG rlc cout y s h.ritrgctrm rhc follq fcudal and colodd potiticd ord6. Tb. pltistad povcrb .An

cl€pbtut td two s.ls of teeth, olc for cating ed tto othc. for show, is rcl€'ah€E: lDliti.al paniB dd or!€r W*lehized srruct!res &. rhe stow t€.th, brtthc Fd i€erb e our ofsighr Wbo, ttd, re @y sl, @ rhe rc.lpotiric.lpoE-dolilcB in Patisld How js rh. politidt ed eomnic poec.dbEibut d a@ng rhm? mrr straLgi€s ilo rh€y Be ro acquirc this pow.r?

What @ their political rcsour.!? Tte dsw6 rcval lhc polirical

srrarificlrion of ?akisbni siery inio fou ti€q with politicd p€ni4 otr tb€

surfrce, uddLid by elil6, sr!.tuB od slsLni

Ir Palist n contcxt, politic.t padi6 @ orgmiaiiotu for ri€ entdc@dr orcxteuon of l}c inl.61s of thc powcr-hotd6. On thc s4ond levcl ar. rhcpowd-holdq thcm-e€1v6, ilc elirB in rhc poliri@l sysi.n_ The, dist wi6ina plunliry of@ .xts, two which, ln. sicr.l dd r[. sp6ri.l, e clcvdr bR.Itr rhe socicral conr€x! rhe dtirs .ie related ro O€ cUhic $ci,l srructuc ofPakkt n. h rhe spatid cont€xt w€ 6nd fie dichotomy betw€d tLe reat systdof prcduetion (f.udal dd capiralirt ed tbe ,id.4l syst€m of pbdrclion(Islmic).

Thc i,h@rerical limc of rcfcrcncc rcsts on rwo proposirim. IiEt eycry loci.tyis divided into tbos. wLo govcm sld those vto de govcmcd. IXe umbd ofl}6c rho govd, rhc potitical or8&iarid dd thc politicd iil@logy difdfrom stat ro srdc. S6ddly' in .v.ry siery politicat powq is itilTdlali.Iydht'ibuted tu L!. political sysreD.

'Political eli@s' ale rhe power hold6 in the body politic, Tbcir drembm

loss€ss morc powd dd politicd influcnce il6 the noFctitcs (the Da!ses).

'Cov@i!8 elires' @ speficatly thoe. wtGe llMbd c@py Eurldiratireposirion! i! rhc political e6 ftc .politicd al@, wh.G r[c govdil8 etit4@ conedlat€d ed *hee mt of the potitical de.ision-@king t k s plae,is th. C.bir.r of the lakistali eftd gov.m.nt.

C{vming €lit s wde loqr€d rhEugh lists of govmd-g€lenls, priretujllla dd C.bind miDbrea 6oD August l9?4 to Jdu!ry 1978. IAedapatioMl baclgrcdd oflhcc joidng rhc @ral dbilcrs m red.d s lheprin. ildicstor of thc elite g@ps ro which rhee Im h€to!g.d. Wt@ t|@tn6 on€ occlpation @ hvolv.d, thc mlin s@e oflivetihood h t l@ sthe doninei occupation.

Thc politic.l migi6 of tnee clite grcup6 re r&.d fron thc Mug[.r(t?ditiodl), Bntish (olod.l) dd post-ildcFrd€m (@cigdr) pdiods orrhehislory of thc $b@tined (se l!blc). E&h of lls soup€ souglr losafegla.d its oh inlcrs tbrold €rercisine power ad potirical irflumce in

Tn. dala indicate llat s@e ctitc gtuups, suh s th. lmdownirg &dpofe$ioaal clites, n d greater rcperenrlrion in tLe Fliti@l dem thd orh6hid- Thr! docs mt n@ssarity near rtar rhey exercis.d gr€arcr povtr dinnudc.. Agsi4 rn. poE of U. 8ov@ing clird dcp.nded on dEnorgeiation d $pIDn bdis a@ng rhc niddlc sro6 ald rhc lt],ls_ ILN

t sb?: ne c6. oJ Pakxt,r faraa. oow

4ptpl<sL";c,* .J"tit" wi; p"t*ffi-

E@rdr

Oe militdy ad blrealcntic elir.s .xmised nqe pow€r ed inflrcne d rhe

lolitical systcn b€ca!* of th€i! colonial rldilion dd organiario!, The powstrnct@ of the ?atislani politiol .litcs olstalljat as d@ic!.d in thc

Tt@ @ lwo basic ttpes ofr€lato hip op@re wihiD thc potitisl sysr€qboth of which !c ed to mobiliz. r.$!rces for €x@ising powd d infllM@over oth.B, Fi.sl, lhd€ e th. ienponry Elalioships fomed tbrcugh

honm .l and ve.ticrl aliuEs. Horizontal atides tinl ctite grcu!6 wiihothd clilc groups, rbile vertical aUiec€ ti.k rhe elirer wirb thc nd+tir6 or|)A6. Th. pEliticsl elir6 ale.t! fom $ch.llituG, bur ar no riDc is r!ft.on!l€t. uit, b.rwee all th. .lir. groups. tt* allimcG d fod.d rb$tghpmcesse such 4 coalitio4 codprcoie, codpdon dd coEcction.

Sd@dly, th@ is rh. !@.at rchtionslip b€tw@ Oc political eUre mdtlcir scial stucru]c< @ial vdi$lc of tnc potitiel sysrcrtr. I! patisrllietbnic oots ce bc sigdimi, 6 $ercn ortq $c[ grcuP3 lhrclgL vatic.llb!!g6 fotu d wirh iE oM crblic greup6.

On€ of thc old.st politiql islitutioc in ihc Mulin wortd is th. nonehy- Arone tinc lhc whole of thc Mulim wortd ws divid€d ilto rhc AFb. p6ia4Tuililh dd Mlgbrt .rdpi6. Ovd th. 6lui6, nci of the eqicdj.ilt gnGd dd f.ll udd cotonid domi@tion. I! rh. po3r_6toni.l ph&nmy n€w stlres have d€r9.4 inctuding a nuob€r of .ry nonarchiB.

Tn. !hc. systcn ofpowd iD colluion wiih rhe l ded &.t buir6s eliEs swcl d old coendive 6nit6 6d tribal ctie6 hd ofrcn b€en Bpou-btefor rhc $ppr.$ion of delt1od{c dpEsi@. TLe grcup3 b3v. Idt lh.neppon bda!$ rhcn @omic ed poliricst pciriG wF ohrin d ilsughl!€n aludc.s with th€ nondhi6.

In the ldt ruor! mo@hi.s nust dc!6d d the lEagth ot 1h.n populdir,mong llt. maiser. Mosl Muslim monarchi.s ftat have b€m unable ro do this(lraa Ubya, Idq, ES/pr) hlv€ son bctu lwctt awat with the.be of wioumE populd politi@l fo@. Orhq harc selt ro slrclgihcn rhcir pceiriotuougb cugiou legitimcy (Moc@, Jordu). poputaiity ud rugioNlegiim.cy h!v. ben the two stabitias of tbc no]@hy i! th. MuliD wdld,whil€ th€ njlilary md hldic forc* h.v. dc.g.d d ns @io chltrms6. Ttemilitary, Emoved fie nonftby in Egypl, kaq ud Ubru. Th. ptac. systdtr ofpo'E bas thcr.forc, whft it U:s swiv.4 udergon coNid@blc idtulchdg.s i! ord.r to s6hi! its sEuctuE,

Ore rcry itrrportdt indi@1or ofthc srlbiliry ofpotirical syst.m in $! Mid,alc

Eat hd b€cn iheir Dolitic.l legitimcy. No rula, rgiEe or sov.End hpowd cu *pecl io enjoy pohical s1ability wirhour tcSidhacy &otu thepeople, Polirical legiti@cy is co$id.rcd cruciat b*alsc .rhc no6r $a!lc$r'pon wiu .Lriv. Am fte conviction m rhc pdt oflhc m.mber rbri n is righred prop.. for hin tc' a6ept dd obey thc aurhdiriB dd .bid. by rh.r€quillmnts of rhe Esine... tbesc obj.cis d contoming to hb om monlprincipls, his own kse of wh.r is .i8ht dd prop6 in 1[€ potitic.l sphft',ed his luppon b 'not contingcnt on sp.cjfic induc@is or rcwddr of ;ykin4 .rccpl in the v.ry long M,.

DII-ATER L RET"ATIONS

TleE @ nfuy exdpl€s of l!€ Si!di-?.t coopmrio$ tnar .m not be

coveEd in thh snrdy. How€v€r, I would b€ rying ny b6r @ cov€r s nen sI wolldbeworking wdqspac. @nltrai !.

A Dry l@t rt S.u.tt Anbir - prkhrto E@!ooi. h&ncdo!I1r rhis cb.ptd I sl'alt f@s @ it ns which e b.iry rnd.! b.rw€@ the twocoulries $p6ialy AoD ihe Saudi Alabia, oil dd palisldr, rice, Howw... I

f.lt ihat norc icd need b to be idenliiled to enttuce two way rrade bctw€d

Pahst ! md Saudi Anbia djoy . clo$ rclatioNhip l@ife*ins i&.tf insev.ral sphfts of inter-strre &rivity!'. Th€n positions on lh€ Anb-trn liconflict ud on way! lo rc$lve it e so close tbt rhcy cs be caled id@ricd.

On thc qudi@ of the sMity of thc culf dd Solrh-Wdr Asia. thcy bDadlyshe a 6lmd vicw. ftb @ ako b. eid of tujor ilr.madon l isuB tikAf8hmislr4 Bc!id., the two courics sh&e a comon ugc to uphold edpmmote Isldic solid.riry ed br. e prcminent pan ir c@deling rhe affaiBof th Organi$tion of Islamic Codfc@c (orc). L.sr blr @t 16r, th. tr!@Mtri6 havc fch ! s[ug Dc€d for rclaric of ilic..dcDctrd@@ dd rEcoop@ting in cuhnl, cononic dd ssuiy Mn€Is.

Thc two 6utdB ar. linl€d wir! srug hftbnd IsLmic tics sie rtc c€ariorofPatisbr i! 1947. ftcn bitar.ol ELtioB @ quit distiaSlish€{t ba!.d omunbl ud4tanding ed coo!.6tion for th€ bocfir of rhe two b.orhcrlypeoDle ia paniculd md rhe &sr of Isldic p.oplB h g6.6t. Thebh,labl€ rclatioN ha positivc jmplcr h @rdjn4ing pciri@ toelrds rtunbq of i €rEtion l issB, sucb d thN of Afglojna!! patestilc, At_

QudB Ar-Shicf (Occupi€d Jerusrld), od K.!bnir. wirb Eg&d 10

?aKstan's position rowards Oe ]raqi o*lpatioD to ih. Stite of Kuwair, it was

cld od mci.l lositioA s Palds|!! con.teme<t rhc lnqi irvaid &d cdlcdfor uc@dido!.1 withdnval of thc l6qi f(rc non Kumit FurtbmoF.klistan oniribur.d bt sding forc. !o join tte I .@ti@l @alirion fo@,whjcb su*.edcd r libnring l<uwarr fiom r6e lzqi o@uparion.

" lDtd.F o1-ua' 'nb\ MbtelatFi s, atw. tNrL* o! DtotuE s@d. s&a-pdrMoB @.d to, Dtpto\o x 4!1o tu sa/d6 prydd h 14o,c 1.4s44 br. ahdaE4o.uFtu rLd'dt. sqaLa \,.

Thc Kingdon @dinatcs ed D*6 consultadon with tL lrldic @utri6ed panicularly with th. Repullic of Palisr.n h rh. 6e of Jamu edKahm4 wirhin thc work of rle lslmic coDfedc* ar rh€ sul@it tcv.l as

well a th. &iaislerill lcv.l, Boi! Scldi Aralia dd Pakista! e ncdrbcs ofile Isbmic Cota.t Cnmitte. for Kalon, wbicl e0! fomcd by lbc IsLnicConf@ne for FoGia) MidsteE 0CFM), i! lhcn coordinatim @ti!g, which

wa held in Nw York in Rabi'a-ulAwd 1415. ehich is ale @moris€d ofNrgcr, Tuk y i! additio! to Ih. Gocdl SdEt iEt ofrh. Orgeialion ofih.IslMic co.f@c. (OIC). Tin low thc is$ of Krshnn ha iB inpacr b rhe

Kirgdomt rclatiorr *ilh hdia, since U. Indie cov.rmd is qunc esniveto dy resolutis Ihat blued co.cdhing irs condclmrion with rcgard to

Kshmir, 6peially thc rc$lutios of the Isbmic grcup.

Irr .x.hanged oIfici.l visits bctwan th€ lades of rbc two 6ur.id hiveconlriblled a g@t dcal ir shdgthding lle bilaleial ti.s betwer rhd. IjenEt top lw.l viit w mde by rh. lrr. King Fai*t ir 1966j rhc cmd ssEdc by the Latc Ki.g K!.lid in 19?6, lle rhnd by th. CBtodid of thc Two

Holy Mosqus, the Late Kilg Fahad wnq h€ was CmM Rince in 1980,

followcd by th4c visits by the pr.scnt Cljsiodi& of rhe Two lroly Mosq!6,Kilg Abdllrh wh6 he w d$ Cmu prire b t984, 1998 ad 1424Il(2004), ed lis @ot vi3it d )427H (2006) ato ssuhg ch.tg. of lhe

Ki!8doh, In addition, imponel visii was hade by tha Sludi CrcM prince,

Plincc Sulta! on Pabi'a-ul-ArMl t42?H.

L is obsded rbat th. bitsrcBt reladoN b€twd lle Kirydon ofsaudi AEbiaad thc blmic Republic of Pakisbn, is growing ldt ar rh. vsiou nilitary ddpoliliql sphG. Mo@vd, rbft is @pdtion b.rwan Squtti Anbia ddPalistar at thc ccononic, i(ndriat dd clrlrunl 6cld! eit it is gbsilghcd.singly. Parricularly ir t€m! of th. Saudi capital oow towdr p.lisran.

Funh.morc, therc ue hu8. nMb6 of Sddi slllddrs, who e€ EMying in

rakis$li uivdsiti€s. On iis pan, the Kingdom ha! contributcd gme.ous

fillfuial sistanG ro ?akistan whh.va rccdcd.

Eall

sone t*o million peopl. &on across Saudi AEbia !d rhroushout ih. rcltdgathdd to perfom ntulls at oft single sFr o! Es1\ Mrtdo\ q6y yd fdthe lasr l4 c€trtui€s. This is hoM a rh€ rbij which b the fitu pilh ofhlanmd llc ndt significel tuil$lation of Isl,mic taith od uity.

Tle aFangme s ofthc gajj bege to imptuve dwing rhe ritu ofKing AbdulAzt Dn Abdul R.!!M Al-Sau4 ihe fouda of ihc nod.E Kjn8dom ofSaudi Arabh. Major pmglls wc(. introdrEd ro el]!W ile !.cuity &dsafcty of the pilg.ims, ar well as thcir well-being and @bfon. Si.ps wcre also

takcn to erablirh feil j.s dd !dic6 .ined !t imprcving houing, h€at1h

ce, s.dhtid ed oespoftarion.

Muli@ torlly undcri.kc the pilgrimage in ese, rceive ! wM ercon€ orthei. aival i! Saudi Anbia dd e provid€d wilh thc dost @dcm faciliti6dd .fflcior sdic possible. Wirhour the di$acd6 tblt th.ir foEbaF h.tt10 cotcnd witb! today's pilgri4 ae fte. lo foG solcly on th€ E irit!.t lslFct

Saudi AEbia 6Gid.R sdilg the gucns ofcod.! hdor, md d.di@r.s v6rnarrEwd ald nradcial reso@s ro Ue prepd cotrduct of U€ pilgimag€.Ovff ft. pst fou d.odes, it la lpdt bilioN of dolts to.xped the HolyMosqu in MakL,t sd the prcphcfs Mos$& in Madirr4 s *e[ ddtablhhinS modd lirporbr saport3, roa&j lodgng sd orhd daaiti6 and

sNica for tne pilgrids,

Tbc dlblishmenr of lhac hciliti6 by itscr dc nor .BE I s!@estul riaij.Thc Kiogdon ba pur inro plrce a vast orgrnization 3upepised by th. Suprc@

Haii Cobmitt€., which rcports ro tbc Coslodia! of thc Two Holy Mosqu*King I!!d Ibn Abdut Aziz, wro raditioDdly is in Malld duing rlepilgrimge. Flming for acb y.als pilgri@g. gdeElly siads ar inccorclwion ofthe prcvioB onc dd involv* cvatuii.g veiou lrogllm @4if Dcc*!ry, iftlducidg stcp6 !o iDprovc dy sdice rbat js dc4cd beid

On tb. way from J.dda,h ro Matt tr along the nodem sup*hghwly, pilgrimboard orc of &e fleci of l5,o0o bud .tsisled to rhc Haii. Tt!5 vasr cm@lreof v.hjclB aplroaches Mina, em! fou nil6 10 l!. nonlM6t of M,Uah,wh* n4t of the pilgrim e€ hoNed in rhe thousds of air-condition€d tenlr$ar sfttc! to the tinia of Mitu Vall.y,

Wdkilg tbmgh t[is wsr .ity tb,r bs bd Grdlilhed fd u. for only a t*dars a ,@! the pilSrim b sf!€k by tne orddtinds of lb€ pLc.. Food ispr.parcd in hnndrc.b of kitoh@ sp@d tbmughout MiD ed dist ibuted

@org rhe tents_ Tlous&di of drinldng fout is ald wash ara, e Im&dtbDughour rh. tent ciry. Tberc &e hun.tFds of 6cdi.d ctinid rhd supptmrthe hospitsb in Mal}.h dd Amfat, Se[iry pdsomet dd t aft. poli@ guide

&d h.lp pilgriDs. D6pit the cld $gB add nMb.r.<t rewq so4 pilgrirDs,

plrtiod.rly lh. cl.lcrty, rmd to gcr t6r 6d n cd stu|'tre flding rh.n td|sor groups. Bdls of&lcpho!6 are locatcd in a[ lll pilgrimge sitc!, alowilgpilg.ia io @kc di@t itrtetuntional c.lls.

Evcry yce over a trlf nilior visae ir$ed to takbt ri larioMls to visr SautiAEbi!, ln the yed 1427!I. Saudi Ar.bie Erlbssy in ktgmbld dd SaudiCo6ulatc in Kar&hi, hdd isued sbout 600,000 vi* f6 rucir p.tist tri,sBrorbcu, $dich inclu& : Enrtolren!, , Uonr, Hrjj &d vilil vi!& SaldiaAhbia Houcs nce 250,000 paltuhfs ed lh.ir famitics, whitc durine lhenontr of DulHijah, Kinsdon Eceive ov* 150,000 plcgmies fo. Hrt scaroN.

S.udi AEbi. gov€m@t dd p@pL h.E r gMl syDllthy ed Espect fo.lh. P.tttd gov.@6t dd irs popl., it M b. sa in rlc ti8h of enca6rlc tow.(h ach orh6 for qdPle(i) Kine !.hd sqr a bis Eli.f in Mech-2005, to pakist ni p.opte for thc

cfferas ofthe fl@tls in Bal@histcr.

(ii) Saldi govelmdr issed ils inlrucrion to all@ate US$ IO.0O0.OOO for

lh. p@pL atr€cied by th. cltth qurkc otr Octobd 2005 in rhe {o@ ofEli.f goodr 6 wel s at bridg. wilh patjltan rc .s!.blisbed ro

tlrsport a nwc q@tiri6 of bhdcq terrq food iLo!, dEdicic edot[.. Eli.f goods. I! lddirion, lll.y sar nodtu. n y.qlippcd fi.ldhospiral, which wa set n & lh. db$r.. a@ ro previ& on thc apor,

mdic.l rclief lo th€ €d1b q!..kc victis.(iii) King Abdullah Bin Abdul&iz has isNed a Royal dec@ rmucine e

imcdiate relee of SRJ00,000,000 for MoBruction of sch@ts,

hospirab, rc.ds! &d othd infraitucrus in rhc a.tL qu*. .fi@rcd !EihFugh Sludi Dd.lopnor Fud

(i9 An exensirc Saudi tctdbio! aDlai8n *a rrunch.d on .r iBrlctidto ge|cBt. 6Dds f@ qrtlqulc srickd t6ple ofpakisra!.

(v) In addition to llar |!e Daics whicb weF a[@r€d for intemarional foodprogram for lhe yd 2005, hav€ b.er all hed€d ord ro be dishibur€d

amng the alfetcd p€olL of thc .ethqul@. Also tbe Saldi DcvclotmatFud hrs lovided addirio..l of SR?00,000,000 niUio. in soft t@b.!is fd Palis.rn to nud 1[. d.velopmt lsga4 fo. thc coDing fivcyca6- Th. Saudi D.v.lopmclt Fud atso e4Ncd its eiliDgtr* ro

gEnie€ Saudi dpon! for Pakiltar *ithh rhe linit of SR500.000.000

nillim to be 4@iatcd vith Monstrucrior ed rch.bilitalion wdt

Sludl AIIDh rd FrNllrl Drpt0mlcy to rlc U!|l!d Nr{o!! (UN)

Tb€ Unly.a.l D.clr.rdoo or,,HuDu Rlg[E..I]N"ft. discurrio! lurourdilg thc Univcnal D.ctdtior of Hl|l@ RiShts ar rh.U.it.d NatioB previd.s . uiqu. sbdins poiat fd s inquiry @!.dilg IlbDed rligiou nbcrty, Iis i! $ bddc of rh. inrlrEti@l n n@ of thc

.liscursioq and bccaN @ibj! adiclca of rhc D.ctatalion sdd6s &c issccoeecd wil[ rlligioB n .dom dir@dy - norDly AnicL 18, which p@vidd

for th. righ to A.€don of co$.ictrcc i! thc choic. and ptzclie of r.ligioBfrilh, itulldilg tlc dglt ro chrtrg. on 's €ligio!, Ir ws tL. Irst Fovisid lhr8av. ri* to disgrctMt b.n'@ rh. klhic stal6 of Stldi Anbia ed

Fir3! ir is appolriac ro m1c r[. .pgoval da 6lhu!i!sE, wil[ which &.pGsibility or ! U.iv@l DeLntion of Hlllm Rie[t3 w vicwld by

d.lcgn6 to lh. Unild NatioN i! 1948. A! onc inidt dp@r, il qr! 6lairW.srm powcn !,ho qhibit d sEb drlulilsm - norabty c6t Biibi! ald tbc

Unicd St tca. Elatur R@s.lq fd dro?lc, com.o(ed o! lbc d.cuEt i!lec of iB poGotial .. s M.gD Cam for dl pcopte Pdbrpo tca! pr.dict2uy,

l[is alhaialtic t !&dcy w ale q@plifi.d by d.lcglr.s th @ti@outsidc thc W6tm cielc of supdF96, 6d c@ by rbe too o!-W6tcbcouti6. Indcc4 ndy .ll tho€. pMicipdti!8 dpr.sred sM. bop.s for b.doctftlt od th.n s4c iL1 rh. world vs Miri4 to ba. r[. t@org{iali@ !pe}. It E fch r!|t i[c Ulivdl Dc.LEti@ would bc p..r of !ocw int rmri@l co$.rutr\ cspecidly chtcd to the.fo@ath of th. Sccond

vorld Wd ed a rc!.*!.! cE. ofrbe pligh of oppBs.d p.opl6. Thuq rh.htin Ahqice prnicipdt' spokc w.lt of th. Dc.t Etiotl a. did r!.repcdttrir$ tDm T.is|! ud !.vml of rhc Middt. Eesr.rn counics. Fo.

tLc no3t pan, dosc vho .xpBcd *d.tioB did $ in Gm of 3Fifi.prebld Ebtcd 10 impl@ntarion d i!. q!*riotr of @ti@l lov@igntyr.lativ. to $ch m initution l docMctrt.

A diff€Enr st ofcriticisn was soLrndcd, alb€n qltioulx by 1he Saudi A$birreplesdbrive , At the outlet of the comittce dh.utsios he comdted lhal

the dnn of the Del@ti@ bcfor hin was blsed largely oo l!€ patim ofcuhre donhel in the W€s! pancm frcqu.ntly at v&id€e wirh lnc panmof cultw of Earen Stats," Thc son of difiicdty h.d i! mhd woutd beomc

appeot io the disaion of thc bsis of hu]@ nshE (Aniclc l) udulti@tcly of rcligiors Ub.rty (Aniclc l8). Wtb cpel ro tums,

'hich rh.

Del$tion ried to the pos*ion of rc!$D {!d @Ni€De, le lointcd our

tlat io sy that all hrl'@ b.ingr *cc .ndowed with tEon and coNicncc

w4 1oo bMd a stat€mdt o.e lhlr wB mt. hd hd never bm true.

Morcove., the words 'dignity &d riShis' used in the 6st s .n@ w@Mbigt|ous {d bad dif€Enr meaninsr in diflerd coutri€s.

Th. st tenent in ArticL 18, ehich indicatcd thc bdic EE€do6 of hurucor!.ien . h Eligiou tundq ys abo rroubling to Sddi Rcpr6dtarivc,

Thb B particularly $ boae t cdon of oGcide rc @Bt led in thc

anicL q inctuding the d8ht to chinSc otrc's Eligid Hc request d 6at thi!

anicle be uode4 dgutug th.1 ii qould o!.n lhc dmr to p$dlrisn ddpolitiMl w6i<cn wr- ?dhlps dirs.nblirg a biq h. &@ statcd th.l lhe

ponio! of thc anicle whicb rrcogtad thc delt b Ae€don of coffcierce

alr.ady contained r.h. rishr to chhge onc's.eligiotr, dd asked why this ridtthd hrd to be slated so €xplicitly, In thc .nd the ditrculty, Naording io

Barudi wa th.1fte ngh to ch.rge onct Eligion, d l*t for Mulim, Ms.ot Eoe!i2.d in Islmic law. Mosr of the IsLeic coutrie agrced with hin,

a tbo* Ep6dbtiv€ whcc Mtion @nlaiftd large Froragd ofMBlim, ycr who vored fm rbc povision, vft 4tig.ted by rbe Saudj

dpns€dativc fd betayiq lleir coBtitudcy.

Nov, .lBarudi's c.np6r9 otr 1his .nd oth* istus (tLe riglts of rcm.4 for

cmple) ar€ not surprising, giv@ ih. lit ane citcd ar &€ olsct of this

chapter Indeed, the Saudi rcpresmladve's s|alements swe as m irnpoltaal

eu@ ir Piscrtori's disNio4 and s.€rj| to h. csi$@t witb r[ id.. tbNr

Isl&ic dltuE i3 oppoed roo nucb of wblr is sicDifi.d by lh. ooftd ofhurutr riglG, in Flation ro W4tcn dltw.

But thc Srudi delegation was rc1 the only onc to cornent o! rhc Rt.tion

bctwan tle provisiG of Ani.lc 18 6d llld so 6r s th. @mittehdngs d tte drat Dd@d@ @ colcde4 de hil! to @tie sysigoifitut div.rg€@ ton d diegffidl wirh tbe S.di Feit@ ddg rh.

IslrEic @uti6. But wh@ rtc DeLntion c.@ b.foF rh. c.ncnt Als@blyfor . fin l vo&, Pal<isrrr's Moh@r.d Zrtubn l<ir! @d. a vdy inr.i.srins

$rldat or the ise ofrcligiou3 lib.rry. Itr.lc64 at cdrgin poids hc .pFatsio hlvc intdded to clalleng. alBmdi diE[y, Ar tbc Eo.de harc ii,Za{ruUah K}d said that:

'?akistM wu e dddt d.f.ndd of tledom of though. dd beti.f ed of rtb. Ac.dors lis&d lin Arrictc l8l. Tb.r! could bc m d,oubt or rbrt !oi!r, eqif llrr qu6rio onry had a potiical r.pe! rh! delararion b. had jus! EliLwould b.vc bed s1frci6l. Blr tu l!. lrlist !i d.legltio! rhc pmbLD btd !spdial sigifrcece a so@ ofin atD.crs involved rhe holou of Lla$, lLth.n fell it n€cBsary ho explain hjs d€l.gafi@.s point ofview otr the subject io

th. Assnblr it wa a poinr ofvicw arising oul of rhe leching of Islen'.

s.rting thrt rL. Qu'@ is rLe yord of Co4 lt. palisrali fonisD mirirl€.@!tio.d: 'Now it sl €d rbat @ilhcr f.irL mr .rBiae wticlt gaE birtb to

il could h8e an obligaio.y cbd..r€r. Thc elm e4Bly sid: .t r h. wtoch@a ro bcls, beUeve, ed t wbo ch636 ro disbetiac. disb.li*., 6dit fonn.lly corde@€d nol lack of fairh bu h}?o6isy.' IsLq, hc !aid, k ,ni$iorry relisiotr whcl @liq on peuuarion, md whicb eogni2$ th. sanedght oI convdiotr for otbd faithj d for iB.lt

In clositre, 'th. ?akistani deleglrion *l}uld thdcforc voE for Anicle 19 [sic],ad would asp@t no limitation on iB prcvhioN.,,The Dol@rio! pased 48_0,

with €ight ab3trntio6 (inctudine Sldi Asbia)

If Mr. B.ddi'! staleDoc @ ro bc cxp€oo4 gi@ rtc lirdtw citcd atov.,Z.hnbl Kbant e cei,idy no!. In view of tuh divdgae, whar is thc

oftcr vicw of Idm ed hlll@ riShb - eQ.ciarly the right to fi&dom of@Ncien e and Fligion? Al-Bmdi spoke on lhe bcis of ktanic taw, vhich&mrdilg to nosr @outs collaitu stricr pbvisios for thc pui$nelt ofth6c vLo chr{g. ih.n digion (i.c., toD btam). z!&![srr Khar lrso ct io.dto bc s!.!ki!g .utborirativelt citing rh. Qu,m s lhc wod of cod.

Sucb div.rgcn(. of opioon poqdes . hqe oppomuity ro .xptoE Lh.

relatioBhip of kl.E to rcligiou lib€ny. For ir suggBll tbat, in sp.rtilg abour

"Isbrq" il is !66ary ro sp6i8/ which Islan is udd considehtior To takc

such c@ *ill l@d to u udcBardbg of r[c ctation bctw@ I5tm ddhllmr nSbtr th.! is borh Eoe @m9tcx dd rich.r th.n b.e b@rotuE b@n

appEciated in sholuly or pq,ulf litcr.nrE,

me i,nfl@e. ot Ihe Spitu oI htau, &ontirg to Wilaed Cotwel SmitL wsnor s Srclt n tdN ofits dn d rcad.Ehip udg hdie Mlstirts. Ilweve..mlo.tart 4e rcFchr.rire ofr!. lhinlinS ofa la4e goup ofMletiN atidin rhis c@tury, pani@hly rbe niddl. cts. H@ ir is cjr.d ro iUulEtc ih.attihde, which Jimah dd ottd i! hb circl€ e@ to have sharcd, lhat thft isnothing abolt Islm tbar is iniDical to vslu.s of irdividul tEdon oriDsritltions of rcligiou libsty. Indc.4 @ording to Zlfaslla! Kbo,stcsiindy. Islm prcvid€s a foua.Ltio! fo. $ch vatB .rd inlritlnidi That is,of @us!, klad ehd it is rigbrly bd.rsr@<L

A very nponanl step fos.d iow{& a stiU clGd Saldipakistani rclatioNbipru tatcn h Argul 1967, wbo lhc Saudi Mds&r of D.&ncc @d Civil

aErio!, visit€d Prtisra! ar the h.ad of a luge delegalion of Saudi d.fecqpdt& Al drc.oncluim of this visir rhe t{o.NEies sig.d d agrcenolon bilateEl @op.atior in tbe licld of dcfcrce. Ttjs asr€mr wa! dsisn€d ro

dile tI. Ssdi def.n@ epability. FoUowirg thc agr.aelr, pakist n

ailvis w@ ot ro thc KinAdon ro h.lp dFnd ald doddiz Saudi AmedFoM. Th. nunba of Saudi Faire in P*isran's mitilary rsining i4rtin|ri@also incrc4d coNidmbly. A y8 br{ tLis tectnicd .@p@tion wsb@dded to.mbrace th€ licld ofcivil sviatio and itE mrio@l airlin6 of6crwo couin.s b.gd to colaboFtc. Ir should b. @&d rbsr O. lgrcdent otr

@pdlion in d.f@€ folowcd dE AnElsd.li wd ofjuc,l967,wli.h od.din a 6,s for rhc Anhq

Th€ Indo-Patiste \{€r of 19?1, and 1hc d€b&le of csl plkisru wft a

ttaD@nc €xp.rience for Paktlan. Saudi Anbia slood by p.thran duiog tbi,diEcdt !€riod. TL Saldi covmcnt 6d popte cxcndcd noot edMterirl aid to P!&ista! wboac inr.mriotrd pGitio brd b..! ltlvdstcyafl@Ld folloeilg rhe oililary adi@ in rhc lhm E$l pakisr.d. Saudi Ambia

rcfriscd to rccognis Balgladesh util thc pakilran cov.lmlilr gave the go

*@d signal. It also ext€(ted tull diploMtic backirg to pskisra! h rhe

€xrremely diffi.ult Dc8oriarim it @nductcd wih tdia in tbc Aftmath ofde

Sddi Arlbia play.d d upre4ddt d ror. i! rhc inre8l politicat cisis in?a}!slm in 1977, wlm it tri€d b mdiate betw.@ th€ Covernm€nt i! loKed thc Udit d opposirion which ws caled tLe palislan Nati@at ArIa@(PNA). RclatioB betw6 Sardi Atlbia .!d patistan .oarinuat @ a stottycole an . rhc cbog. of govcmdr in p,tisa.! in Jully,lg??. I! fa.tprcgK i! dh. d.EloplMr of b al.Bt @pdadon 6 nrtd @eld&{Mth gca&. sness coniry b b. I.id oD i.telogogical dd polriol atrlitidbetwc@ itc gov.lmal of thc two couhi6.

Saudi Arabia ed Palddnn slood by ach olhd in tincs of scls has bc6p6ted on llllrmu ocasios. Ir novcmbo l9?9, e .v.!! occudld which ffilshock wve all ovq the Muslin wodd. This €v6t w3 rh€ occulrtid ofthegoly (!aba by .mcd cxbmisb. Presidor Zad IIaq voied rhe .dap

corcm" of ihc Pakisran @tion ed 4$r.d the saudi Gov.mot of ,llpGibL [.lp i! drdirA with the situlrion. Followirg @oB rbn rhe UliLd$!tes or IsB.l h.d ! bdd iD the K@ba cpis<le dgry crew& Ld by sru<t nts

of Isl@bad Univ.city attacked rh. Am.ric@ Enba$y on 2l Novmbq,ma.ked il ed set it afiE. Thdrt! giving pFyec w.rc ofrftd all ov..Pakislan whd the oeupatioD of rhc Holy K@ba *t! ovcr. P6iddt Zia{l-Hlq wdl10 tuydh on 24 Dgebq 1979, stortty !n r thc crisjs dd.d insadi Aibia. King Khalid thrnt d rh. lEsidenr for th. dccp mc@cxp6sed by rtc people ud Covenhmr of Pakislan on rh. Hotv-Knaba

incid€lt. situilsly whd rakisla, faced a crilis @uscd by ire Hijackins in

March, l98l of P,l,A anlne fist to K.but dd th@ ro Dalt@u, p$idczil{t Elq tMed o Ki4 Ktilid fd hctp, asking bim ro uc his good officd cbaim of rh. OIC to sE thc Ft@c of the p$dg.B, r[e c@ ed rh.hijacked planc. King Khalid Bpond.d by aswtu8 th. pasidat of his

intention lo rlo dcqlling po$ibl€ lo Fy to ger rhe hdt g$ fEcd.

Sadi Anbi. ha b€er sta.lfsr i! iis spporr ro !,tistsn on ft. Afgei$.t

'sec and ba cxrodcd ir stEparhy &d suppod to pajdsl,! b fachg a gnE

cnsis. Evd sirc€ ihc Soviet hoop6 invaded non-.tiF.d Afg6dsrd inD*edbd 1979, Pakista hs ben ie.d wii! a very diftrcult sitution owing

not olry to a n* rbrEl from a sup.rpower but ats duc to the tr€nod,ouimpc€d by what is rhe biggc* Etirgrc pobt.D 6cMtd.d by dy @utry at

Sandi leada have on sv€rrl occ4ios cxpres.d rh.i solidariry wirh pakisia!

io its jut sidd on ile Afgmisrd i$u.. In Apd! 1982 DiAbdou yarui, ihcSaudi lrfo@tio! Miaisrd, duing hir virit to palisbr rcitcmt€d S.udj

Anbia's suppon for Pakislan od del{€d lbrt rhe bttr bad adopred e ..jusf,

ad "hmublc" st d or tbe irsu. Saudi Anbia ba at$ lat ga@unatcrial $p!on for pbviding cli.f to AIgd rctug..s, T[c $846n cobirgftom Saudi Anbir is of in4ti@bl. vatu€ 10 Pa*ist n in its ellorts to sdr tpolitiql ktlem.nt of the Afge crisis. In rent y6 Saldi A$bia ha!

.!@ed e inporl&t rcle in rcgional !d inrenatiotul ltrajB. Apet Aonb.i!g dc of thc gand 6@i.l gjer of Ldry &d botdilg rhe o6c. ofclllmt claitrfu of thc OIC, Saudi AEbia ba dcrg.d N rhc tading Anbpow. Fudher, a oae of ile bigscsr donos of aid to lhe T!'rd World, ir iasacqun d a grcat I*@9. in irr.hario@t fotlm. ..Above alt, ib sob.r

l@de6lip bis 6ircd ile sratu of thc couEy a r gi&t dnolg &c cmcrgcor

natios otr which thc grat porcrs look wirh rcs!€t and aw."

Apart ftom rhc bilaiml conrext Sardi Ambia and lakisu! bave clos€ly

cepeEted witb cach othq in rlc Oig&isatiotr or rjlmic Conrel@ (OIC) ,cl

Thc cdvdgeoc. ofnuturt inrelegr ard a wftte ude.sriding on egiout dd

'ntemalional affaiB, esp@ially such causs s the patillllid rtilggle against

Zi@in ed Al-Qu&, baE ldr ih. S.ldi-parida! .qudon a st e|gth ud a

dunbility tbrt bvc fa p"rallch dywhft in lh. *drd.

Saudi Anbia hls cortinEd on a stc.dy coEe in rho world vhm n atso h.s

suplotcd Ihe mcdiarory €trorts mdc by tati$n! at rhc iNtalcc of sevmlIsladc 6uui4. Bot Saudi Anbia.nd parirt'r @ depty @ncded .bourdrc d$96 of djsuity il tne Isldic World ad e wiling to Dat johr.forB lo avoid th. aSgravation ofLL cdsis, One ofrh. pulosa ofthe visir toPakishn by Crcwn Prince lalad in D.@Db€r, 1980, ws to sek pe&etul

wat€ for Bolviag rhc cdsis facing thc M6lin wodd. In a joinr @muiqEissucd ar th. c@clui@ of thjr visn. rh. r\I/o ladcs "dprBs.d lh.n el!@.oncm al rbc dctcrioating sin8don in lh. Middlc Ess! s ! Esdr of I$cli

ntid$gerce ed affimed ttat a jult dd lstidg peac€ could not be natizcd

witholt total Israeli withdawal ftom all occupi.d Anb t nirori$, in Padi@ld

Al-Quds Al-sbeif ad th€ rcsolurion of rhe imli@bl. MdoMl riglts ofPhlatiriA! p.oplc. Borh sid6 aLo cxaired in de h rh. g|!v. criris tbat hldd@lop.d in r[. cgion d@ ro lh. cdtjlu.d f@ign nniery Fl!.@ i!Afgsislan- Raaling tle rclevut Gohrios of rLc Isbnic Confe@@ ofFoEign Minbld ed th. Uniled NarioN ir panicdr th. cddd Al@blyeolutiN of20 Novdbd,1980, the tvo sid.s cliled unon rhc Soviet Udon

to withdnw its Eoops ijl@diar.ly ftom Afgsistan. Thcy .bo Fitaltcd the

basic Equisitcs of . politi@l $ludon of rhe qiris and th. .€tio! of D€6sryonditioc for th. volEtary cru ofAfee Fntg6 b lllcn hoG in sfcA

N.vcdbl6s, ?akistarrelatioNhip with Slu.ti Ara,bia, ws s see of sE€ngrb

to lhe fomcr in @uraing llc dBbbilbing eft.t of r'o impondt Egi@al

factoB, tMdy rhc fdmd Sovi.r pr6dcq Oc Nonh W6rdD bord.r aDd th.IndGs.vi.t5 Ftiadship Tuty of t97!, wtich brougbt in i5 wat disftG6B.qud6 for ?akistar The clo* rclatid$ip betw€.! Studi Anbia ddPa&bid "serv.s notice or lldia .nd Sovier Ulion (at that time) &ar athough

Patisbn my mt b€ a mlch fo. .ith.r onc nilird, it has a powdtut ,lly wirh

€olomic sd tDlitidl cl@. llc cofl ofey aiact t[B b.€mcs higtd rh6it bas b€.D i! 0E p€q *t@ P.kist$'n only Aicnd ws . Chin lbat *hililzrly rdmlizd into i@d@ by th. fomd Sovict Union., palisraa

reeiv€d lsslmB of Sodi slbp.0ry rld slppon in the l97lwd {itu r!di..on 6 Decebm€r 1971 4ta!r6r issucd by ttr Saudi Mbi!.t debrnded fromUnited Natio6 & ucquiveal @trdcnDtid of agaBsion ag.iB! pakista4

*dich it $id wls r flagml bsch ofthc ttN Fieipl6 dd in conrlvdrion ofa[ int @tioMl las ed Dd.l @d6,

saudi Anbia also exhd€d irs tull diplonatic suppon to pa*i ,r in the

rcslutioft ofport-wd bs, Saudi Asbia ate show.d a trlrk d ilte6r ir

rbc pMp€ts for thc iro{rov€lmr of lldepa&rrar El.tio4. Duin8 CtouPriocc Fanad Bin Abdul Aziz\ visir to pa.tisrd in D€.ebh€( t980. rhe

Pr€sdat of Pakistan briefed the Crown prin@ on rhe progrcs &hiwed in tbe

lotrdi4tion of t[. situtior i! tbc S@th Ade rcgion ud of prl.jn r'!cosisldr .fforts to promore Aiddy Flaric wilh rlt irs neigtibous otr rhc

bai5 ofthe miv€rs.lly rc@gniad pnnciptcs of sv€Eign, equtiry, r.sp*t for@h othq's iddepelderce ed renitorial irtcgrity ed non-i dIe@@ in ach

Thc Saudi FoEig! Minis&r Saud AtF.isal visited Nd Delni in 1981, drtaticr hi! 6@ting with Indim prim Minist€r Ms,IndiB cedhi, fld 10

Islah.ba( for d wh€dul.d n .ting wirb l6idlnt Ziad Hu{. Cahinpoliri€l @Im6r.to6 b.v. atFiburcd the opding of &c $bsqudt IndGPakisrd dialogue on a no w paci, to rhe €forB Mdc by Saldi Anbia tobring abolt d unddt&ding b€rw4n the two rciglbo8. ,,WlEt iL srudisc4 ro bav. ulrdcrsiood ct*ly is rhlr patjsran,s vonh s a fr,tor for rbenom *cdty @urd b. Ed&ed gqrly if @r lottatiad alrogarld by dyactiy€ lrdo-Pakistei hostili9.. Thc signifitut se€ms fft ro say that if the

Indio leadcB wd. hoping $at in rehh fd Ildia,s eppon to tne Anb caMSaudi Anbir would agrle b dnb!@ iisclffion p.tisia4 bur rbe hoD. wG mrtumUcd.

Coopcntion between Saudia AEbi. &d pakis.tr ba led some qultrlB roqpBs th. su+iciotr thlr taljsraD itrGndr ro phy rb. US lrcxy in th. C,rralongwirh Saudi AEbi4T!. Saudi dccision to hcb finance pakisrr!\ Mspwchse Ddd the 3.2 bilion doUa$ deal with the Unit€d Srate! .!p6 10

hav. strdgtLdcd this suspicioL Th@ baE also ban It@r Epotu m tbehrcmtio.al pK of a $hd. b *jg! a sl€i,l divi.i6 of patill!! tbps iorcinfoEc Srudi A6bia's med diglrr i, ce of d irtcmal uprorng G qr.Mah@i. ThcE laye b.cn accuation fron cdrain quarrcr$ of a Us_i@pirc.t doveto cr€c a &w $curity plb for rhc Gulf to reph@ Uc fo@d ..rwir-Diltar

policy". Pakist tr brs .ll.gcdly bcc! substitured for rr.! ald EpLccd as th.ecord pilld. Saudi Adbia ed Pal(tur.n h!v. doicd thd rb.rt is ey straregic

oilitary coopcotion betweer lhem, although both coutrics adnir rhat th.y {to€oop@i€ 'in da of tnining".

Sardi Anbi.'s dcc! in[Br b PatisraD,s swival ed !.cuiry s a viable srat

is . wel-boM fet. Apan ton othd rhjrgs rhe vdnat .vidde il llc fod ofstltmdn on thc uord by S,udr l*dks is ovwhdmjng.

Orc $c! imponet srltemar wd udc (the thd) Srudi Crcm prin@ Fatad

duing bjr vi.n to rsriitan i! Da.mb.r 1980. Thc trile publicly daLredilst Saudi Anbia coNidd il! @iry ro bc ricd to rhrr of prkisra! dd &.r"my intafcreDce in the ift.oal allriF of patdstan would bc ouidqcdinlerf@ncc in or itrjuy to rhe Kigdom of Saudi Asbia'..

Evfr b.fo. thc outbEt of rh. Itu-tEq wd lh. Sovicr iDsiotr of Afgmisra.rct d 4 a cat yer in the MID of Srudi-P.tislan ratriolship, Both Saudi

Ambia dd Paj<ist n hlve Eeeded $. irEid 6 bfilg lynFromatic ofSoviel exp|$ioniso. tud since proj4tion of Soviet ?ow.r is s.m io have a

synbiotic rclationship with Comuilr4 both rhe Islmic couriB €gant th.Dv4roo 4 a vcry g6vc tnHt

Milirary c@pdatim eith Saudi Arabi| tro1 only brings .@nonic b@e6t ro

Prtjstaa n is also a sowc of psychologicd satijtacrion in $.r il is s4a ro

hive a b6h in thc Irlmic couecrion, pakbrd t4ls morc sE byse.ngdoing rclarioG wftn d@ddibl. pow ourside ihc Sdrh Ada*tting. Th. felli.g of suiy n.dec.d b@@ patistlr is wcu al@ ofthc US comitme io Saudi Anbia, I'}E US ledcB havc oli.n q,inr€Dal

stabiliry of saudi arabia.

CHAPTER.9

Sirdl Artbli El.d.trtoflot mtiodl RclrtioBTh. S$di Kilgdon wa @pabl€ of change lesu*, $ ir modmizcdi n*minirEi€B w€E crcat d ro tulfiII nw tunctioB. Th€ fiBr midsrry !o b€

catablished wd that of F@ig! AffliB in l93O ad oi!.B foUov€d hrer, Th.MitrisFy of FiM@ ws crat€d in 1939, D.fd€ ald Avittion ir 1944, thc

lnlcrior i! 1951, r{g.icdrr, Comuiqrion ed Ed@ti@ in 1953,

ComeM, Industry dd Helrh in 1954. rofomtiod, labou ed Social

Aflais in the 1960s, ed Justice in l9?0,

Th. nd middL cl.!s Oat energld s. Butr of nodcrdation brd8lt far-

rcaching ctdg€. i! Sdudi Anbia. BcfoE d€ S.@nd Wortd Wd rhe Kingdondid not bavo 6ough finalcial ruouces, dep@ding mainly for its incotnc on

tb. pilgrid vho csc Ao@ all ovcr rh. wqtd It qls hcld roecrhd by t!.pason l lotrltia of the wiou rribes lo Kitrg Abdut Adz Al-S.ud. Th.lading clN6 wcrc th. pri!@s, rhc ribal shlykts, rh. (Iam dd th.ncrchmts. Tle discov€ry of perol and h. Bnlilrt incr€as€ in th€ @uty\income led 10 the cEarion of a ncw midilb crss. Thc Eal iryact of this

b@mc * feh duilg rhc tarcr 1940s, who rbc elat oil E@ccoBid€Elly €xc€cd.d lhoF rceiv.d duing the pr.-wu pc.iod. T!. niddt.cla$ wd therefop 'the prcducl of nod.mizliori ed tau.d a $dden hugc

dcfed fd stjllcd dd unskill€d labou', espaialy i! thc @utietion ed oil

Thc lek of profe$ionally trained Saudis ws @np.Mrcd by foEiSr skilledlabou dd prcf.$ion.ls. By 1949 rboul 5,000 forcignd w€E @ the st3tf oIIhc Anbio Aneli@ Oil Compdy. By 1959, OEr. wE foriy-fou S.udis

do.8 lhc adio. stdf, dd 3,000 dong l[. .ilrc@diEt staff. Th. &trsd

for sriued Saudi profBsiomls i.crcscd contiN@sly, but tbe Kinsdom had !o

dploy ilolM& of fiftigrw to kep !p wirh lhe d€tuds of modmiz.rion,In idailting dE n* middle chs, ttc d.nb.Bhip of wfuu prefsions inrhc gotu@t, milir.ry ed bNi!6s s&roB - irchdiry tt)@8.rs,adfrjnbFatos. techlicis, mthenaticid, ei@rist9 and lasye. AII rhcs&e chdcleri4d by then rclib* m *culd, non-naditioDd sles oftloyledge, wbi.b sepcd 1o dilringubh I[d froo orhff hiddletevcl gllqps,

such d ofthdG, rzd.rq l,ndomd md rll of wboE nad a r?diiioml

Obje vd of th. S.!di Dipton..yTh. prieiplq of rtc Saudi Srrlc policy wcE ba&d on 6e Irtdic rctigion

since lbe @li.st phdc ofthe i!*ptio. of Saudi silre. Thc apintual iBpilniiorcanc ftoF latc Inm Mob@l bin saud in I158 H. Il cmtinued to.dh@b l}n policy throuSb olt its seco pbae uder rlc l.ldership of thc late

Ill@ Faisal bin Tutld, 4 w.ll a duilg rhc thd p[e phich is rhe 6 ofrhG

foud.rofrhc Kingdom ofsaudi Anbir, rb.lat Kiry Abdul Aziz (M!y Anan

GBnts him Hk Mercy), who cst btthed rh. Kingdon@ in l35lHcor€sFndiig io 23d S€ptenb{ 1932,

Thtughout th6c pb,s, boli lhe jnrcErl od qr.ret poti6 q@ bd.d onrne IslMic Stdr'a a! lrime dd mjor sode of th. l.gislatiol Ir @ no

soQtuq silce ile Kingdom was honord by Alnighty A[ah to host the twololidt nosqes i! Mal*,! Al,Mu]lmb dd Madiu! Al-Muoq@!, both

$cEd citis thal A€ visircd muly by d4t a nillio! Mlsli4 toh a[ ov.rrb. world who com. b pe.fod U!]tm!.od tlrj. Th.€ is no @ury i! th.world, ytethd ir ha dipto@tic r€latiotrs wiih the Kilgdon or nor ftom wh.rcpople do not cooe to pdfo@ Utuinh ed Haij.

" h. Rryt tntast ofsqldi lnbio. hhMtht oti\ qqdit d k yarkshr u.s.l.

Thftfore, tho factoB of stability ud @sistancy of tbe Saudi fd€i8n poticy

e dqiv€d Aon ihe facr thal Saudi A$bia is rh€ cndle ofite rcvetatiol ed$e sp.i4 of th. Isldic religion obi.h is fouowcd by noE rhd one biliotrM!sli!6. Ttis ba b.d stated by HRH princ. Naifbia Abdul Aziz. Milisid ofIntedor, rno said "the Saudi policy is for rhe swic€ of Islm dd Mutims..H. €npbat d that the Kine.lom puB it policy sd irrcBis for th€ *ryi@ ofIsld md its fouowF in wdy pb.e bd at ey ii@, cv6 if tha! @ rbc

accour ofits oM irr.Gti WhiL th. Kingdon inll@.nts rhn polcy in th.s.rice oflslarl ir is t€d rcl to int.pcn ir rbe inr€ml affais ofrhe o&dIslmic coutrics, or 0Ds orhd @!-lslmic couFies with MBrim minorirics.

HRII Prir Srud AI-F.isal, F@igr Minislq of S.!di Anbia eid "S.udid€.ision is bNi@lly .thical in mtuq d.rivrd fron thc tol.ru Istmic b€ti.iSloriG Islamic vallls sd rhe wondertul ktmic hefitage rrd this is evidcoilydd cl@ly refl@icd in $. slheE of ilE foris! policy,.

TIE Soyiet Udon ws ahe fiBr counry i! th€ wodd rblr @ogtriad rhc

Kingdom of Saldi Anbia d a r€sult dipl@tic rclarioN w€E *tablish.dbetee@ rhe 1wo coutri€s. Howevcr. the inflexiblc ComDist tolicy ofopposiDg rcligiotr md cominirg nr.scG agd6r rhc bdiw.E in 8.@rrldd Mulic in panicula$ rbar bn vi.iid in rers of lholsds of MBtim,which led to eeap. of n@y of ttm to Istmi. courri.s, in€hdin8 Saudi

Arabia. This dr€ad.fitl poticy tudc in. Kinsdom of S6udi Anbia sevd ii!diplomric elario'! with tbe Sovier Union id 1938 at tblr tme lle tirsdons ! mall turgirg 6ut, Ml! Ery tinit d .c@nic dd 6@i!lqap*iUtie, drl in . dirc n ed for sFong retatioB with bi8 coutd* tit th.Sovi.t Union. Dqpitc a[ 1[at the Kingdom editiccd it! posibl€ boefiI! fqln. seMce of Islan md Mulim. {.RM. Ki.g Abdul A?iz Al-Saud brd i[cideeribed rhc Sovicr UnioD a a .outry ih.r va et btisle<t on wnBprbciple and ba! oo fds. a6.bdc foudatioE &d o& d.y ,o d cdlailtycollapse. His prcdiction eEs infilled iD l99l whm rh. Sovict Udon .ottaBed.

'mc Isluic lrilciple3 @ which Uc tjrgdom % €sllblilhcd @ rocholi{deAite tbe ru.reB politicd stom ud qrrbqu.tc (Irt root pt@.AmbNadc Ab.lul Ralna Mob.md AlJidai.a', itr htu b@l -Sadi

FoEign Policy Thc CoNtant Pdncipt$ dd tbe Practice.. *rot ..lhc satidtfanes of the Srudi policy hnvc ddeloped uttd lh. n*esiti.s of thc

int Mtional policy, it hrs ber cbMtcrizcd virh ir! coBrancy d wcl t!Rdibiliry in I world doniEt d eirb @d.que vdiablB ed d*lop!@t3,wbjcb n k it dillicuh for tmy @utriB in the wortd to cole win tn. fdrdevelopn@ts wiiioul comprcnising rh.ir fiEddndilt principl6, ro th.m(lary to thc auccc$ acbi*d by tlc kjngdom line 6d again. On the b.!isof the a!ov. wc @ srlt. rhrt frudrhatlI basis for rhc S.rdi f@iAn policy

f@6cd on &vdl iih.nqioB ilcludbg tb! folowilgl

Flutly, N.dond Dln€nstotr: To !rct .r rhe holy plsc.e, pBwe rh€ Amb

md ldmic lMitagc, hig ighl thc .o$tlletirc @riorl tndirim, dd to

obtai! lLe n@..s{ry Itr.6 fd !Dw6 to dcfcnd its tditori4 .!d sfuurld it3

$codly, Gulf Dtnenslo!: ftE najor .sublishnent of th€ Outf Copmtio!C(fuil CCC, i! l98l dd lhc Kingdon'! srrolg conviction of tho joilt cdftutr, ud th. com@ goals of iB mcnb6 ourrics in .ttdition io rh.ncBiry of prot cling s@uity dd 3tabitily i! this srar.gic rcgion, wbich

po$es6 ile la|g.st oil seNes ot th. world.

T rdly, Adb DlDddoq The Kiigd@ of S.udi AEbia is de of rb.fouda of the rr.guc of Anb St t s. Mlritra &c oc@iotr of ttc 5dAmiv€6ary ofthc Esrablisllbdr of th. Anb Legle, rlc L!i. King Flbad birAbdul Azia saidr ,.rh. Kingdon t@k pan b the €lablishMt of thtu t aguc,

b.@w of its co$tant principlB pd.iv.d by thc bic B.R,M, Kjng Abdul

Aziz in galhdilg thc ruks of lLc Anb lrd Islasic nlrim ed sdr oDt rbci.diF.m6 &d supFd the I]@h of tbc joint Anb ald Irtdic,oit fd rhc

good of the MBlin Umah ad iB intcgriv _ Thc Kitrgdon p.nicipa&d inwd of PaLstine in 1948, a supponed Eg}?r i! Sucz w in 1956, .tssupported E$/pt ad Slri! in the wr of 196? ad rblr of l9?3, whd ir s0opped

punpirg oil dd sot sone of ils treps for rhc dcf.@ of Egl,p! Sti. and

Jod&. Tte Saudi dipl@cy play.d . dccisir bt. ir dding the civil wd itrL.beon by agi!.ding l!. TaiefAgE.mdr in 1989,

T!. Srudi diplo@cy pby.d oDe of irs grar6r rcte, wh@ thc Anb slmittcld i! Bcitur itr M@b 2002, a.!opr.d r[. p@. iliriaiivc !rcmr.d by rh.Crem lrince AbdullEh bir Abdul Aziz, which offer.d pa@ ro rsBel agaisrtold withdraMl ftom thc o€upicd Anb lnitorics.

FounNy,Isl.Dic Dlm€lsion: Anb6edor Abdul R lnd Ar-Iilaia., i, bi5

book "saudi Forc8n rolcy; Tbc Coffrsr principlcs and rhe p@ricc" wit6''the IslaDic netbod oftbe Kilgdon is a conprehe*ive @m€pl @r golr6its intc@l policy $ wcll d ia dtctut Flicy. It rdoprs lllrm s frirb ed wyof lifc ar a Eelt rhe IslaDic dincBion b@ncs s Nb,kablc pilar in the

Islami. exteml policy".

Wilth thb @ntex! dte KirgddD $pponed evay Mulin sue ad !bov. a

th. Palediid caac, in addirior to the orld Isl@ic issua. sEh s rb. disour.b€tw..n lndia ud Pakistd ovd Jamu ud Xrshnir, ih. Soviet occupstio, ofAlgheistaa the civil ws in Boslia ad Hdesovid dd Ko$rc rcgiotr, dddd lbove the opprcs.d MBlin ainodti6 .U ovd rhc rcrrd As r lwLnost of &e notr-MBlin coutri€s of rhc aorld, wh.thd bis o. smlt. .E tmto mk s@ tbar th.ir mni@red Arb6$adoE lo rhc Kinsdm e ofletanicfaith, such d Indi!, Pbililpines, Sirgap@, Cde@n, Chrd, South Afri@,wcn ltaly, vhich is a Carbotic Cbrisrie odlry bld .plDid.d twie, .MNlim anbasdor b rhc Kingdon, dd the nBt .c.rstir.d dba$ador ofthc Euop6 Union to the Kingdon ws Mutin Bndsh, who mdesllnd! rhalIslmi. eli{brity is an .s@tial el.Dmt in the Islamic diMion of th. Satdi

f@isn policy. wb@vd daly&s rh. Saldi dethod in daling with the rrlmicsolidar y issu.s, will find unique chdacrenstis that dc strongly lint€d siththe bistory of tle rclisiou upbnrgbg, inretlatud sttuctue ed civi[rnhdilagc ofAlsald nning Afril,

Thc corcAt of klmic soldlriry in rh. modd lisrory is a@iatcd with Al-Sa!4 dft.r th. catlblish@t of thc Saudi St le, ud rhc uific.rion of r[eKitredon udcr lhe leideBhip of King Abdul Aziz Atsaud. Thi! IMh@tilucd witb co irutiotr ofhi! sotu on dc !@ ocrb@.

wtdmr l[. cotucpr oalsldic eliddity C m6rid.! h rtE modm hisrory,

rl nst bc as@iarcd witn tbc cforts oI At-Sdud in srrqgthcnira rhh com.ptat the lev.l of Islanic UnEai,

Saudi foEign policy objddB @ ro @jrr.in ils @iry dq rc lEruourlcilion on thc Anbi& P6i6ula, rtcfcnd g@61 An! dd Isbsic in&Brs,!rcnore solidlriry among tslqmic govemsrr, dd nrintain coop@riv€

Elalios wifi othd oil-!rcducing and najor oil-coEming couhi6.

Saldi AEbi! signed the UN Ch.n r ij t945. Tbe cou6y ptsy! . lr@iMled consdr4rirc role in thc Inrdrtiomt Md.irry lun4 tbc wortt Ba!t. and

Anb ed hlamic f@irl dd dcv.topn@1 sistance iBriturio$. Onc of ttldg6l aid donoB h the world, ii siill givs $me ai.l to a.mbq of AEb,Atio4 aod Asian coutria. Jeddah is thc h@dquater ofthc SccFi{ial of llcOrgmiatlon of the htamic Conl@ne dd ir! subidjary o.g&izarioA tbcblanic Da.lopmd Bmlq foun&d in 1969.

Menb4hip id rhe I l-ndba o?EC.nd i! rhe r€chli@ y {d MnoDic.llyori€ cd Adb prcducd g@!p th. O.ganiarion ofAEb ?.holeM BiportitrgCouti* OA?Ec-facilitares @ordinriion of Saudi oit policies with other oil,

e4onitrg gove@dh. Ai ihc world\ laditrg dponer of Frdcm, Saudi

Arrbi. has a sp.cial inra€st i! pr.sning a srlble dd long_tm @k.t for ns

vdi oil rsoees by allying irself wiil be5lrby W6n m .@!omi$ which @prcret rte valE of Sludi f@dd asets_ Ir een Elly hs @ted lo st bitia rhe

wolld oil furt€t aad Ei.d ro rbdqrc sharp prie [ovms$.

Tte Sadi Cov@nt tEqucntly h.lp! m.diare rcgio@l cris &d suppon i!.Isncli-Paleridd p..c. o€gotiltios. A cbqter m@bq of r[. Anb tage,S.udi Ambia supporB rbe pcirion rhrt tsn.l dsr wil[dnw tbn thc

LEikJrics {hich it @cupicd in Junc 196?, G a.cordiry to Unitcd NatioNRcsohtio! 242, Saudi AEbia supporb a pe@tu1 rcsluriotr of th€ AEbJsFeti@nfltt blt Eier.d the CaD! D.vjd a@o.ds, ctaining tbat tL.y would be

urblc lo aciiac . conpehe4ivc politidl sotution ib.r would ms@Pal.stinim .iel$ dd adequtely ad.tress the status of J.Malm AlhoughSaudi Anbia boke diplotutic rclations wirh dd sBpodcd aid b ES?1 in fiewakc ofc@p David,l[e two @uEi6 rcn w.d fomd ti6 i! l9S?. I! Mann2002. Crcm Pri!€ Auulta! oF@d a M dle Esr pec. plu a1 rhc amlalsum'1 of the Anb L€dgue in which Alb govehmdrs ofi-eEd rho@l

El.tioro ud tbe lccurity of tsel i. exchdge for a tu[ tsn ti wirbdlax?t6om all mpi.d Anb ltu ls, l@enirioo of e ildcpdd.nr palBrinid srabwior Jerusle@ a ib capital dd ih. ctum oftatstinie Ftuee.

In 1990-91, Sludi Asbb ptalrtt h impo.t&t rcl€ ir the Oulf Wd, d.v.loping!a dli6 and inl9rcviry disting rltti@hips bcNM Saudi AEbia udwc61 orh6 .oar.i6, I{orevd, tbcF de wd diplomtic dd nnl&ial@st!. Reladotu b.teeen Saudi Aftbia dtl Tuisia, Atgdia, dd Libya.LidioFted. Each courry had redlin d sndr folowjlg l$qt invlsion ofKuMit bul callcd fo! a dd ro viol@. d@ ilc &ptoyMl of co.tiridrrFps b.8e. Rclatc berwM rb6. @uni6 aDd Sludi Anbir h.wrctuncd to rhen pFM statu. Saudi Anbirt @tations wirt! thce countri*which aprcscd support for Saddam Husei!'s ioBi@ of Kuwlir _ ydclL

Jo.daa dd Sqdct* swdcly srrain d duridg dd i@.di!t ly aA.. $cwar. For dxMplc, s€v€r,l ltundrcd rhowd.t ].€nais w* .rpelled fbnSaudi Aabi. .fte! rbe Cov@€nt of y@o mouc€d i$ p6itio4 lhueedbatilg e .isring bord.r dispuic. S!udi-y@@i clationt .speialy ir0E *zL of thc 1994 Yerrn civil w, lmin Flgit. 6d of sigtrifi@ronl@ !o 1h. Saodi Cov.l]@.i. Th. Pal6tilc Lib€drion OrSeizati@tsupport for h.q @$ n dndcial aid as wett a god Etarioc with Saudi Adliadd other Culf stdres. Recdrly, rhougn, Saudi Ambia.s .clatiod wirh Jordu@d tle Pal$tnie A!6onty bave ihprcve4 with rbe Saudi Covm€nrpmvidirg sistance fo. tLe lhlerinid Aurhodry.

Duing dd an r thc c f wr, lic covllmot of Sludi Anbi. povited@l*. f@d, sh€lt.r. ard tuel for coalition forc6 in rbe rgFn,

In his sl.6h in rhe (N rhc CbM princc sajd thlt dary p.jn of rhe world @tu ihe thr@s of rcgioml dd ethic waE 6d dispur6, sd natioml &d ttibalbordd p.oblcm and coniicrs. Contronlation betw€a mujalid@D factio.s is

stjl EginS i! Afgbmttaa ptv.ltilg thi! cmry and its pcople Eon @pirythe fnits of libcu$oa fion f@ign Mupari@. Th. pcopl. of Che[nF @sDbjeLd ro sba&s of oppBion ed viot@ iD which lMy llllmc.l ddiu@6! victiB pqis[ r a Bul of |bc domi@6 of {!c principte of Bingforce ovq th€ oprion of negoriarion dd pd@irt eolurion of iL Cb@h@

prcblem, Thc i!$. of the Pakislmi-tndie diqure ovd tamu ud (,sbnir is

stil a $@c of t sid md instabiliry bct*@ lm nciCbouing coutri6.Tlis lads [s to rcqucst tne two pani6 !o dfti& a nwimn t.vrl of &lf-6 .ol ed resolution ofthe @.flid rhrolgh mgoriadoB i! accordece *ihthe coluiioG of tbc Unitcd Narioru rhd gmt i!€ Fopt. of t.lMu ddKasbmii the eht to self{elenni@iion.

The isss such a Pal€sthe ed the Anb-ts@li @nflicr, wirh patlicular tmuon Al-Qlds Al-Sh|rif dd the cllmr status of rbe peace procds in th€ Middlc

E$t is dso h.vc gtur @r(m to rhc Kitrgdom of Saldi AEbia. Thc Kirydmha alMys voiccd about l[. Ishnic n.rions h lbc id.Mrionlt al!@ Irq,AlSbtabt q Somlia Sudd ald C}?N, ir additior to Krshnn, rhe Faccp@cs betw..n India dd Pa&isrdn, md tnc prcblem of rh. Gtuee* in r[e

Itr Flation !o J.rsald &d r[. co.stilcrion of Isacti scttlmdlr th@, &e

stand of the Kingdm of Saldi Anbia is one wticl is @mplct ty cl@ dd towbich it hN Sivd €xpBsi@ n&y lim€s- fte Kingdon d.ploB ddcondems all actions in Jdsdm which ft ia @nfli.t with thc BtuE ofth€city ud w'Lh the legtlmle righrs of its amb lElulafion rbeEin.

It is ihcEforc cs!. ial that theF should bc o{rdidtio! &d inr..liE6tion ofatl efort! wbich bav. Fsitiv. Cood inr.nriod in ordd lo eeldte the pmof brilgilg about ! jBt ad .omprchosiv€ pa€. MoMvd thd should bc dabaftl.mcnt of Focasti@iion and delaying lactica so rh.1rhere roy be due

s@pe for lh. inpltudtarim of EI*dt Unjrcd Natio6 tuolurjoG for th.etun ofih. @@pi€d Amb lardr sd for the *rabtishmdr of. p.latiE sta&

with J@slcm a i5 c.!iral.

Frcm lbc v€ry begimine, Saudi &abia ba $pFrr€d ed d.f.nded rbe

Palestinid cause dd cstinuA to do so, ridi up n U€ prcs@1 da, Thar @uehls ban dd @ntinu* to be ar llc ce F of ile Kjngdod's @n crc. S{udiAnbia ba.Dlh.dud at d..y opportunity rh.t thc p.se lought is ajurr md

@E!E[.nsivc otrc bosed d Unir.d Nariod lslutios &d m i !tutioDtlaw, a pacc vhici sd:lB fo. thc Pal.sriliu Fopl. all lhcir dghts d rhe

b3sis of r€solutiG 242 dd 338 which .ffm rh. rielt of p.ldtinim to clf-deieninafion dd hn€li withdnwal fton rhe occqied Anb rcrdro.ics.

It war on this br6ii rblt $c CBrodia! of thc Two Holy Mo6qucst Kirg Fata4wb@ hc wa6 Com PriEc lrucb.d hs initiarivc whic[ B ldopr.d ins.lrcEbd 1982 by &c 12tb Arlb Sllmit C@ftu h.ld i! rt Moloccscity of F€a That plrn e4btucd rbc ncccssiry of IGli troop's withrtnw.lfton all 0E occupied Aeb t€rirorics ilcludiog Anb JesEtcm ud thc

establisbndl of e ind@dddr Palestinie 3rab.

TItc qudtion ol Jetusaleo, b tbc vicw of rh. King{tom of Stldi Anbia,

reltttcoE thc !.ry 6s@@ ofthc Palcarili& de dd thc cot! of thc Anb-IsE li dislutc Ttc tutE of ihc whob pa6 pto.* &pcds otr th. sy i.wbicb rhb qrdtio! is dall win

On 22 S.ptcnb.r 1996 the blr.li Authoriti6 opaed th€ ud.iSround p6$ase

cl$c to llE Noble Ssctuary in occupicd East Jtral€n. Tlc Kingdon

disprlcb.d thc Deputy F@igD Miri!1d 10 ldrricipat j! thc UN S!.uitycoscil d.b6€ on lh4 dwcloptr@ls which rbc Kingdon Esdd.d 6 mtody 8nv. i! &cre16 blr d a cld r.!ct4li@ of Is".ti irt ndoB yith

rc8atd lo tb. city of J@rald 1lt4 w@ ro mft for its Judaici2.tio {d to

dcoug. d[rnisr J4ish cl@dt! to inrcnsi& then d.srNctiw .ctivitiewiilrin t\€ Noblc Sdcnrary wirb tle .in of clini@tire ih€ Anb Iseti pBdrin J.Nal.m !d giving a cloak of t.gitimcy to Iseti phE. Th. positih oflhc Kjng&ro of Saudi Anbia s and rcmai# rhat ey slulio! !o r[. qudtion

of Jctuld rut rate inro !@ur ihc fndirys of i!&@doDl bw .ad .bouN Sc€uityR.solutioN252 dd 267 whclEt .ro Jorllalm

Tte Kirgdon of Sodi Anbia eivd tbc atory6t @dGco.!! io dl the

rceluti@3 ol tte Islaeic ConIffie Oryaniation rclating !o th. is. oflaleetim ed ro .l€rualeb, the latd of which folowed the ctose ofrhc kLnicSulMii Confcere hcld in Isl@bad in Patisla!.

Thc ror.l S.udi aid io thc Pdclrioiu €s., whcthq @ lhc oitci.l lml ofSovc'@ot (rh. mjd pair) or on rbe poDular dq is of lh. orda of SR 7

brUion, eqdval€nt b US t.87 billion doltai!. Saudi Anbia is anorg i[e targesr

sinele 6nnib os ofaid ro tbc Pal$rinis Aurhqity,

IAe Kingdob enpbais.d Fgardirg l@.t's faihrc to iod.mr lhc .R@d

Map' to pace, Thc ini.oarional omrnuniry, rtpBdted by rhe euadelComittee, which irclud€s rh. Uniicd Si.t !, dult uge Iwl io tiv. up to irco'mtuenls to impl.tu rhc Road Map in 6dd io achide a just ddcompEhosjve pace i! rhc ..8i@,

The Kingdon of Saudi Anbi! hs Eaffm.d to cotrritru€ holding the mepositio! ofgiving Buppon b a just rld comprch.Bive peace which wil brhso end 10 olpBsiotr &d whicb will rtun occlpied Arab latub 10 l[€L omp@ple in Patstine, Slda dd ribaDon.

DEirs a vGir, Je 2003, ro rbc Kingdon of srudi Anb4 pBidar ofPalista4 Pwe Msh@f, .xpascd hi! grsr app@iarion se rcIgdoa,s

c^n.nr.Eblc @nooic lssisrslE. !o bis coury ovd y.c !tro @Nslatsppon in rhe s.mh lor pae in Sourh A3ia rd lh. righ of rhe KabBnp6plc for seri.rminatioa Borb thc ladlits disBcd bilatcra! Fgioml odintetudotrrl isB includilg Kahnh and Patesrh..

The pr*iddl had netings wirh thc Cutodid of rhe Tvo Hoty Mosqu€s KirgFahad bin Abduluiz &d Crch Princ. Abdullal bin Abdulazia rhe D€pury

Prenid dd CottMndd of the Na{onal cufid. h rlF m€eting Mlh tt6 CmMPrirce. the pr$id€lt hld discused bilateEl mn€rs and ihc latsr ddetopn@r

in rclatiotu betwe{ Paktut& md India wirh sp.cial Efffice b lhe Kashniriisue, the siiution in lhe Middle Easl aid Ue "Road Map' for pe@ betw€athe talestinitu ed Iselis.

Molds, Afgidistan, Ilaq ed m.trds rclating to Oe Orgeizali@ of Isldicco e@@ (olc) &d thc uirr of th. MBlin erid wcF ale disss€{L

The pr$idflr briefed fte Crcm Prince oo rh. proqEa for rle emltior oftal}s bctva Palistan ad Irdia ed urdatb.d thc oc€d for dty lgtutid oflbc iss of Xsbni! tbrcWL !.gotiarioc. Thc Crom Prine supponed .tro.isfor rhe lellrion of aX ourrraodinS isa6 t tr@ patistatr od I!di.ircluding tbe lol8{tarding is!u. ofKlshnn lbrou8h dial%@.

Tle Kinedom also supponed th.r l6qi Srir. msr be catablish.d &cordilg ro

tlE *iI of its oM people, so th.r Inq ce puue its hjsroric rcL hd live io

peace tud b@ony with i! .cighboN.

ln o(ler to .mine ihe crcnt developn nis in rhe e4 rhe turr of r6q inlhe aftd@l! of ihe war, sd rhe ptans fiat re dzM in tbis rcgdd rhe

Kincdm of Sardi AEbia to hold a mccring. April 2003.

Ttc Kingtld holcd for d @ly erlblbbmdr of a b@d+ased dd tuIyrcp@dtative gov@ot in IEq, in a@dee wirh a @tirurioD lo bc

agEd tq@ dd Eti6ed by lle p@pl. oflr.q; e Inq living in p€@ yirh its

ftighboN, and etpedrg all .$tirg int @rio@l dd bitatcEt lrarid ddagrcdeffs,6Fci.lly{ithisacighbouF.

Tle mairy afimed dEr rb. lbqi pcopt. sbould adninisrer dd gov@ llcncouhy by tbruelv€s dd ary €xploitation of iheir natuFl rcsws should b.ir confomity wilb the vill of rhe leSitimte Inqi govcm€ni md ils p€opL

ed teritdial integrity of I$q.

The CCC stat s bave bcn daircu rbn I[.n Etati@ with rhe rslmicRepnblic of Ir& be bN.d on good tr.i8hboulils, Durul E9e! od no!-inrdf.lt@ i! @h orhel3 irlddl .fris, ed @.dopritrg la@tut 'lfu so 4!p@ch to lglvilg dis?ure bcred rwo psrrid. Th. FfinEi lobtdof the l[r blanils l@r.d b.tu.d Lu &d rh. unied AEb faiFtcs sriu

co6ritu16 d iry€die.nt to .Lv.loping rclatiotu i! rhe rcquircd |fud.

Saudi ArEbia at th€ Uniicd NatioN Plartom

Th. CrcM Prtuc. Abdullah bin Abdut Azt, tbe D@ury ptuia edCotlrl@dq of lhe Natioral Cwd eid th.i rhc KinSdom of Saudi AEbia js

colmirt d to .dtribut to thc succ.$ of thc hmeiry. Addrc$ine tbe nNCrcq Prince Abdulla! said ihar wh.n c63id6ing ctreeting chrngs in th€

stnctw oflhc Secuiry Coucil, ce should be rsken that ey id.s *pouedwill not infring€ on the turd.b@bl @le of this body. For exmplc, the

lroposal lo exped the n nbeBhip of thc Sd]lri9 Coudl otr the ssmptjo!of equitable geoglalbic Eprcsentarion my not n@$suily lcad io lhe dBircd

Mults geognphically or polirjcaUy, RccoBidfiirg the rielt of vcto tbir ijavailabL ro the petru.rt mcnb€q whil. ek owl.dging rLat ir My b.ioposibl€ to achidq will nor bdcfit s s mlcb as sEivitrg ro linil ils eagaict prEvioB reolutios ldoptcd by thc Nobly dd ap!rcved by Oe

patEdr remb.. srat6 rt h$ls,

Seord: eEr.r cffdr hut b. mdc to copLsize rh. rcle of the Unir.it

Natios s a mat r, dd lot only a psctud, of p€c.. It hls b.d pmvdberond doubt that d fldevou to pEvor rb. @llfue of cortlict is IlmvDhl€ ed l6s costly thb .rcning efons sd disiparrs .dc.gi.s to plts;€psce folowilg thc dplosior of thc aitu.don, Mdy of l[e c@nicts nop

nsins ould hav. bcen avoid.d oi mitiSaicd had ye €x€n€d gurer effort io

prevent the escalation of fi. crtis fiar prcccd.d lhcn.

Tbird: th€ @ons for the lack of stability dd s*ufty, ev@ in th€ rcgiotu

w!€rc p€ace ba b€er nadc, arc anriblhblc ro r}€ facl that ta@ in ceiain

istanc€ dd ude. particuld cncumtlnces is inconplete beaue it t ha&d

or elencnts or opprclsion ed eercioD isread of right sd jusdce. Focc sdoppEsion cmot 4lablish justie or .em€nt pc&e,

Folrtlr lhe adoptiotr by ihc Uniied NrrioDs ofrhe topic ofbl)fu nghs, wbjch

6 dst'ined ir rh. hl!@ ricrs @nf.@4 h.ld in vi.m in april 1993, is

appEiltcd dd comadcd by us. Ir is unforruatc tbit itc il@ of hl|lfurighls is onm ucd d a m@$ ofprBre sd. tool ofextonio4 wittr lle aim

of achieviog cdlaiD polilical ad c@Domi. inrd.lrs, We egdd hul@ righls

d a gift to Mn&ild from lhc cr.a!or, md not on. gntuitouly gtui€d by om

Ul)lm being to eoth.r Stlcb hllM rigbb cns! in ihc Mb of w.ry hlllmcivilialion, @d e nor a nonopoly of one culturc. lt h ab$rd ro inpose on dindividul or a scicty rigbr! thal arc atio io its b.licfs or principl€s.

Finh: the ir€ towetls globaliation thal we support and ddoBej is one thar

h€lps foster lirlc betw4n culturB dd pronores clomcs moDg altFopl4@d natiom, md .tpddr lhc pmsp.cts for cooFdtion, We lDp. rhar ihe

Udted Nati@ will r$pon s in sraadjng .griEl a globaliz.riotr fiar reulrs itr

tLe hegnony of llc srone over thc wd]q imascs $e @lg of opp4iondd exploiiatior of etioB, ed f6L6 bjuric. ud incqulity in intenatiotr tEbtioN. We paniculady wd of thc mifi@rioc of ubridled globdiztion

dd ia r a d lnhrElh to vioLr. lh. sov@ignty of srab ed inre.fft with

6eir inrdal aftaiG ddd r vdicty of pErcns, Gpeidly ion lhe egte ofh!!@ nghb issB a stabd ..rli.r.

Si{h. n is fifting fo. tbc Unitcd Narior ro adopr rh. call for etab[5tjlgcnrt'ral dialogue dong mtions ud lo d.dicare p.rr of ils aim6 dd eEort ro

cxdiDiDg wbal ach culh!. his to oflcr by way of @nhiburioB md id6rclatod to ile conc€pt of hurEn righB. W. e in dic qe.d of a fomulr lhat

cm brine togeliid the uiv.Mliry of such con cpts &d rh. inportdn@ olrcsp41ing those things rbar stc sacEd, lhat no cultw tu djrloso with or

Tle iniroduction olc6t in structunl ard orgsiarioMl refom to €trnde the

perfomcc of fte United NalioD .nd ircrGc its e6scy @y be ne6sryin the cumnt .e. Thd€ is, howcvcr, a fim rcality tbat cmot bc ierored or

IIe eid pith rcs!.ct to thc Srriu rlclq *c @ 6nd no qpt@rion for irs

faltding, mept for lhc contilucd inFri.sigcncc of th. Isacti sd.|rrlMi, ddns hck of intcBt ir Mling rh. &quir.mre of the p@e pjl).* Sftr*esilate Isdh Mtkltawal ro th. ,ue 4 tirs, in ecorddc. with rhe

prituiple of ldd for p€ac..

In the Ambim culf rcgion, ille Inq-lEr wd continued ro 6Cc for d exradedpdiod lft€r the adoption of a Seuty Cou.cil rcsludon cglting for cesation

of hostiliti*. Wd betw@n thc two r.iShbounng @unhics slopped oiny aftdtne two p6rties Es?onded ed ruboittcd to the prcvisioo of rhe

albmddon€d qolution. W. i! the Asbie Cutf rcgiotr, ho*da, m stilsuffding Aom problds rcsuldnS noh rhe Inqi govmt's lack of firU

adhdeee to its cotmittrdts io thc SEuity Col|rcil solutio$ tblt w@isued fonowing ldq's iNasion of rh. Srar. of Kuwait io 1990. Ibis t&k ofa&@nce ba €used @ntiNcd surcdng fo. rhc blorberly Fopte ortraq as rlNlt of thc @lonic blockade and rh. co itrucd u6|li y of La4k

intentios roward its r.i8hbou, *,lich b r!!trtrDed by rh. thrarmingItnsuage ued at the highst ldeb ofrhe k qi ldd6hip.

The Kingdom of Saudi Anbi., wilhing to h.lp r[. popt. of IEq obllh r[eirb.sie nadi, hs $ppod.! thc &v.lopm.nr ofthc ploe@ ofoil fo. food.

The Kilgdon ofsaudi Ar.bia, likc iLs sistcr nrcnbG of the Culf C@p@tion

Co@il. qcrtl rhe uitN1 .tfotu to srlcnglhcn pe@ ed slabiliry itr rh.

Anbid Gtrlf rcgior\ and ro crcarc rn cnvironm.nr condeik ro @momic

developndt @d &li1fuI coop.ratio. among neighbouing stsr6_

In ooth* ares ihe KrSdom of Saudi Abbia, which i! v.ry nnch @rcmedwilh irture reldtioG mong thc srii6 of thc Egior, @Didc6 th€ borda ircaty

sign€d &d alified by tbc Kingdom of Sludi Aobia Dd its reighbou 0ERclublic ofYcncn, logchcr with thd signcd wil[ rhc aisrerly Srat of Klwait@ncdiry ofBhoE @ contiguos 10 thc fomd ncurrat an , s iadi@tive of

stisgctiotr dd lop€. Thsc two sigrifica e.rclts m be co&idcE{t ar

modcb to be mularcd in r6olvilg bo.dd dilpur.s ed @n0idr b€rqm

In Ani@, figblilg dd lmld conilicc @ Gpetcd in M@6 pdrr of th.contioo! espeialy i! ihe lloh of Afric., which my eeqbat wouds dd.xpand the circle of miscry ed povaty. h this .onbxt, w€ cout gsily oD

t!€ wisdon of lhe lad€6 of tbis gr€al contift ro give prcmiM@ 10 th€

higl€r inlerest oflhet coutie! and rcsolvc dkpurc thrcugh peacotul ma$.

We m sad\Cencd ro lmd tt t rhc dispurc b.r*etr rh. two n€igLhou$r Eriradd Elhio?ia, ba wolvcd into a d.v6r.iing wd rhat hs tiled tMy of 1!.yolng !6pL oftte two @rio6, @d. rctugc6 ofhurdr.ds of itcu&, edqposed the i.tlsrru.tu aDd 4ononic cap6citi6 of rbe tqo @uiii.s ro

d.srructid dd @tc, Wc rheEforc @ll otr rt rwo laitid o rue a sue*ofde te€ ple plepud by rhc Orgdiz3rion ofAAi@ Unity rhri c.lls foratrhpli@ of ftgod4tioa b ordd to siop rle bloodsh€d &d avoid rbe

Mterial dd monl lose sBraincd by both sid.s,

In a nearby a@, th€ Sonali probt.m is goins rbrcuel a nmbd ofdevclor'netrti, nosl notably, O. convcning of&c recorcililtiotr conf*nce inlhe Pcpublic of Djiboud. W. wetcone th. poliiive Eslits of the conf.r€me,

whicb included lle €letion of lcSislative dd qecutive omcials to std the

couay on tbe road b pc&e ard Eonciliation. Wo hop€ ilat lbe SoMlil@deE yho did not takc pan in rh. Frcc @ntctuc. join the pmss @n inorda fo Sotulia to rcsMc irs prop.r 6d cdsr.uctirc tulc h rh. Arab ud

Tle goretmor of thc c\rodi& of lhc Two Hoty Mosqu.s dew16 a g@rdal of .[6tid ed inteBr ro t[. cfiois tatgding etinin tion of wepoG oflla destuclion in lh€ Mi.tCl€ Est rc8ion, includbg rhe ADbid Culf,

tbsugh $ppoll ofthe end.avours ofthe tBSue ofABb Stales ir Mordecewirh the relutior i! its lolsr rcsion calting for Mting this sitiv. pan ofthe wodd e a@ fre Aoo *e3poB of Ms dernciion: nul*, chdiclt,ed biologi.al. Itr ttis cT@! *e .r. very @nfu.d .bout rhe cddlucdrcfirlal of Isful io a@e.L ro the nucla. lm,pmlif@ri@ rsty, dd its

mintd@ of its trudd preg@ oubid. ll. s@pe of idterotio,l .@rol, a

sihEtid lbat @Btitul6 a sbE rhlor to the s.diry of the rcsiol

Tne Kingdom of Saudi Anbia ha grdt.@@m for issu$ of itE dviD@ordd lhe ftc*sity 10 prelect it. Il hr! sccordcd this toljc a lronircnr place in irs

itrremal a foFign policies, considding that safegurding hul@ tif€ eclosely Elat€d ro thc sleuding cnvireMcnlal dd climaric co iti@. Lthi! @ntext the KiDgdom h.s elleiivcly p.nicipar€d h 6ifffi@s, symposir

ed idematio.al aedcics Elaicd to thc cnvircmenr md its trordtio!, i!a.ldiriotr to being a siautory 10 lucrou i .mtioDl @ dti@ rcbcd ro

Tbc Kirydom bclidcd rb.t rbc objdrivc of scbiding globol @enic baldead cen@ting the pill6 of conprchGivc dmooic developbdr @ bc

&hieved only by @nlinued colleriv. efron bscd on rccoitid ofjoircspocibility low{dr ihis i$u€.

Ir nnly md sndgly sppon the principl4 of the nultilatenl rade rcgindwith the Fdnework ofthe World TE& Orgtuiatioq rh. d@bts ahout thc

equity of Ois reginen e mobriDg in thc ciEler of those coNtrie rhat bavc

s|&ltd ro f@l th.l sb4 of l*dc bcncfits @ @ntinuing 10 €bb. Wirh thc

pNgc oftine, wc find lhc gap bctw..! the rich slai6 dd thc ddetopingsrrrd dd irclaing, epeirlly ir th. fi.lds of du@tion 6d te.holo$,.The havc dc.pocd lh. hug. diffcMcs b.rw@ the ydst dch6 of tn.&veloped wo.ld ed lh. povary of rtc dclclopjns c@rri6. tA€ rcrrhsourhdialosue ba not achid.d rcsulB 0,it .onEibure ro llmeing rh. gap wilh .nry to &hieviry de dqn€d cquliry.

th.otrgh suppod olthe €ndevoB ofrhc League ofAEb Slates in accorddcewnh lle 6olntio! in ils lolsr scsion calling for mkiry thb s@itivc part ofthe wond m a@ Ae froo vep6 of rus &srrucrion: rel@, cbmical,

ed biological. In rhis resp.aq we @ v.ry @nemcd abolt the 6 ilucdFfraal of Istul ro ae.d. ro rhc nuctca. !o!-pmlif@ti@ !qry, ud i6mintcn,@ of irr nEle poge ouBid. l[. sc@e of irttution t @nhot, a

situtior rbar @Bdntt€ a siou thErl b 1nc s*uitt of tjrc Esr@

Tne King.lom of Saudi AEli. ha gEat conc@ f6 issB ofrh. dvimmdrdd lh. Ncssity ro gotcct ii- Ir hs accordcd this to!,ic a proninent plec in ii!inlemal @d forcign policies. considding th.r efegwding hMd li& @clorcly rlaled b de sMouding cnvircmcnbl ed climric condiriod. In

this @ntet Ihe Kjngdon br! cfcctivcly participared h conf.M@s, srrposiaed int@tio.al ag@cies Fbtcd ro rhc dvi@M@t dd itr prcr.ction, inadditjor to behg a signarory ro numem!! in1@tion t corventiN rEtarcd b

Th. Kj.gdoo beliw.d tb.t rt objdrivc ofacbiwing glolal eombic bda@dd cmaring the pillaB of @hpEb6siv. €@tronic developocdr 6 b.acLided o y by condnu€d coUcctie. .lion ba*d @ eogdrio! of joblresponsibility towrds this issu..

It tully ed sEongly slpport thc principles of th€ hultilareral tnde rgiBhrit! lhe tanework of Oc Wodd T6dc Org&iatiotr, thc dolbrj abour ihc

equity ofihb Feind are munrilg h lhc circls of rhos @uries lhnt hav.

startcd to f@l thar shrE of r.adc b.n.6r @ c@tioilg to ebb. With lleplgge of timc, wc find rhe gap bctwc.n rh. rich srarca &d rhc dcvclQi.gslale evd in@ing, 6p@ially in lh. ficlds of cdMrion ed iecbnolog/_

Thdc [*e depercd rhc hug. ditr.t@B bctwa thc %r nch6 of thc

d.rclop€d wo.ld ad the pov.rty of t. d.vcloping coutria. fte &.th-sourbdialog@ ba not &hiaed rcsults that conhibnr. 10 ,,lrwing the g.p wi|[ a

vicw ro &hievilg the d*ircd cquatiry.

Srudi turblrd Rebtio!! wlrt Unled Sbr.r ofAmcric,

Sandi ABbiat uique blc i! thc Arrb !!d IsLmic wo.tts due to it5 possionof wdldt ltg6r !!sds of oil ad its .t atcgic loclriotr make its Ain,r.l,itimporralt to rhe Urit d Sratcs. DiptoMtic Ebtios e@ qlablisM in l9j3:tLc U-S-A obNy opded i! Jcdt I in 1944 ard Dovcd to Fjyldt h 1984.

Tle Jcddal ehba.cy bccd. A U,S, coNbie Mtuvbitq a U.S. co$tar.oDenedhDhalnnh1944.

TIe Unit d Stat6 dtl Saudi Anbia sh@d a comon conc€m about rcgio@l

s.cuityi oij exporrs ard inporr, and slslaimble dw€lopmor. close

coGultdioa b€tw.a the U.S. ed Saudi Asbia bave d€veloped orrlemtion2l. *ononiq od .levclopmcnr isss such $ rhe Mid\CL Esr pacc

pt@s ad shded interqts ir the Gulf- Tlc @nlinued availability of eliabtc

&w4 of oil, psrticuldly Aom S.udi Aribis, I!@i!i importalt ro &cpMldity ofthc Unitd Sr.t6 d w.ll s ro ENpc ed Japar. S.udi Ambia is

olid thc l@ding souce of impon d oit for rhc Unitcd Srrleq providin8 abour

20 !m6r of iotal U.S. @dc impdrr 6d t 0 p.|@r of U.S. @srqtio4 Th.U-S- ir Sodi AE!i!\ braet tr.ding pa.!!q od S&di Arabi. is the ta.g6iU.S. cxpon ndtet ir rb. Mi.ldl€ E$i

In additior io eonomic 1ies, a lonSshnding seuity Ehrio6bip @ntinu6 to

be impon@t in U.S-Sludi rclaions. A U.S, military naininB nisio!€stablished al Dhdn"n in 1953 pbvid€s tEining &d $p!od in the @ ofw.apos ed olher secuity-Elalcd s.dic.s ro the Sludi an€d focs The

Ulitcd States ha sold Saudi Anbia nilir$y aiE6n €- l5s, AVACS, 6d UH-

60 Black-hawb), air dcfeG woponry (plEior ed Hawr nisil6), ,mrldv.hicl6 (MlA2 AbI"@ tanll ed M-2 Bddlcy id&try fishtiry vebjcl6) ddotbd €qdpDdi 'Ilc U.S- Amy Corys of Etrd@B ba b.d . lolg-cm retc

in nilit ry @d civilib co4ttucrion acdvirics ir the Kilgd,on

Tle Gulf War od Opderion IEqi F@don demorlrr.bd U_S-satr(li

c@p@tion 'n

i!. aleas of cultulal ac@modatio4 a w.ll s in mitirary

op€6tioa. lor drDllc, the U.S, mitibry issued g@enl odfi! Iebbiting th.coDsuptio! ofalcohol ed *fiilg guidcliG ftr oft-duty h.havio. dd aniE.

Saudi Anbia Momodaled U.S, culte &d ir mitirny F!.edjc byallowilg U.S. sdi.c aoncn to *tuc in lh.i. wied tu1.3 rbrcIghdt lbo

kingdon-@jor sicp for a higbly patd&chal seiety. In Augut 2003, folopingtne U.S led w! in taq ia MNh ed April2003, United Srar€s wirhdrew it!trools stationcd in Sau.li AEbia.

Saudi AEbia's rcl,li@ eirt rh. Ulitcd $ates w@ !!lin d .na &cScptdbd I l, 2001, r@rlt attack i! which t5 ofthc auicid. boDb6 w@Saudi citiz€ru. In May 12, 2001, $icide bombeE kjled 35 peopl€, including

nine Anencus, in arFcks al rhrc. houing conFunds for Walm€s intuyadh, On Nov.mb€r 8, t@rtis.trdck€d eorhd onpoud houilg turcie!rc.kd &ob uinly AEb @urid, At tast t8 !@ptc, ilctudirg j ctit&ddied i! tbis .ndct, dd nc rhd l0O w@ bjued

Clll@ily. Saldi Ashi. is d inpodet pa.her in tbe cMprign dti-te@ris,ptuviditrg Nisi.lt military, diplomatic and foocial !fuas, Cout rteffiimcMliti@ bctv..n Saudi AEbia dd Unricd Slal6 i@.d signifi@rly andrhc May 12,2003 toDbirss in tujrdh.

Econonic rld: Saudi AEbia pl€dged $too nillion in 1993 to fiddre@mtruction of t boo4 shce 2000, it hs comin€d $307 millim foreistucc 10 thc P&l6litriur pLdgcd $230 nilli@ io devclophr irAfgbdishr It also plcdg.d $t billion h qporr gll,futcs ord $n ll@ bka$ $133 million in diEt g@r aid, Sl87 nillid i! @nfcssional t(m md$ 153 nillion h €xpon ftdirs &r Patistan €alhqu2.te Etict

Tle viial importance ofthe Kingdom of Saudi Arabia cu be judg€d by t@y

Ilnt it is a brida. b.rwd th. W6tm wodd ad Asirs. Wnh AAi@ od dcsid. ed lro dd S@th Aia on rh. orhd, ir b in tbe niddle ofrb. scdtegically

inporla lndid O€{ aro.

Se@ndly, Saudi Anbia's uiquc fom of gov€lmot sggBis its signitico@

to cobp.Etivc politiB ud ro dd.lopm.ar srndid g@Flly. TL onty Mtion

10 uc r ecEd s.riprft, @ly r[. Holy QnEa s a coisriMor, it isadjusling w.ll io tLc mdilioG of !h. twdry-fftt corury whil. $lr.ining iBdistinclivc llldic idmtity.

Third, EBon for 1hc sielifituce of Saudi Anbia is lle cruci.l inporlaee ofrt3 vdt p.lrolcM deposits, which.dd moF political dd.conomic vcight ro

PGtrolcM prodution c@l6 a condirjon of dw.lopndr in &. @ntcxr ofw€.lth ..Ll€r thd pov€try. S&b devetopnmtal afibarce is shded only by

Kuwan, tu Urit€d Adb Enintes, BNI'i?i! ud Qarar. Eowevcr, Saudi Aobia.ir gcogEphicAlly ed aomnically a much biggd srne in tbc Middle Esr wirhgqtfi@noEjc potcntial

Fouibry and dGr inp@tan[y is rh. facl tblt Saudi AEbia is th. EtigiGfocB for noF tbd 1,000 DiUiod Mlslim aU ovd the world. This.@ot be

ovdl@k d, cspccially whd il is FAlizcd i!!r Islrm to MBIins i! ! wlv of lifecloscly int rnvined witL d.ily living.

TLe Peduuld Shj.ld lorce of aboui ?,000 coflenss uil.' non al Cutf CG

op@tion Coucil coudtris.

SrrEng6 (2602) w .!,pqi@rcty 75,000, Tlq€ b a plmilit ry FmtidFoG (app.oximtcly 10,500) dd a National cuard.

The Royel S|udi N.*l F@6 ft..t ieludcs fou Ai9tcs ed fou @.v.ddNayal Avixio! fors op@t6 2l mcd hcucoltas, borb 3tip rld 3norc ba&d.

fte @i! @Ql bae e at tuyadr (He Nav.l Fo|e), J.dd.! (w.r&m Flcer)

ed Julail (E$tem Fleet). NaBl persodet in 2002 tobU.d 15,500,

'nctuding

c\lmr @mbtl uiG islud. F-tss, F-jBq F-5Fs. Tms& lriL ajl@ft a tTomdo iltcrEcltos. 'Ibe Air Forc. op.ares 432 @nb.r .ircoff in dl edrub€Ed about 18,000 pe.smcl itr 2002,

Tbis s.t€nt C@n'"d % 6mdy p.r of rhe Amy. I! 2002 n opfar.dtrfarto-dr mistc baftdics dd b.d s sEtugth of | 6.000.

Tt€ toi.l 3tr6gtb of the Nationt Ousd eourrld ro rp!,rexi@t ly IOO,0O0

(75,000 a.riv., 25,000 trihol ldi6) in 2002.

ISLAMTC REPUBLIC Of PAKISTAN

?.rista! has ile qodd,s .ighr]-teg6r m.d f@6, all of wtd @ wll_rnind dd di$illined. Hopcvd, budg.r cosrlint arl @ti@_buitdilg.turi€bave rtuc€d Pa&isnn's nomrl bbGl raiains r.opo, wbic! if d e6.d,will watually.Ifet rh. olEArioot @dil.3s of the .m.d f@6. Lit wis.Pabst n h3 bad d in@irgly dimcul rirc tutuai,ing then.gi!g fler otU.s., Chinese, U.K., &d Frnch cquipm€ . mile the induri.l bdccapabilitid have expanded siSnificd y, limit.d 6scal c$uces @ vdoustuct'oN have sigdfidtly consrrain.d ihc aovcmenf s etrorls to nod4ize

Utrtil 190, tb. Uniled SraL6 prcvidcd nilihry lid to prljsta! ro mo<r@% s

cmvhriorl def@sive qplbitiry. Th. Uni&d Srar.s altMred a!o!t 40 p@atof iB aisratr@ pactlge ro M-EioblNblc @dits fd nitiLry plEb,s, rhc

lhird-largBt pbg@ bebind Isd ed Erypl. Tte lt@ind6 of tt aidprcgu wc d.votd ro @mdc sislane. Ss.rioE put in pta@ h t99O

ddicd Palisbtr nfihd milit ry sisran@ du. to rhe disov.ry ofilj pog.aElo develop nEl* wpoos. Ss.iio.s wcr. tieht &d folowiry pakistan,s

nucltu t sts D r€spce 10 lldirt May 1998 tcsrs 4d ihe dlirary coup of1999. Tte everr! of Seprenb* ll, 2OOl ud pakistar,s quick ig@nedt ro

suppot tbe Uniied Saies l.d to a waiving of rh€ sDctioc, dd mitiralyasht !@ reshed prcviding spor€ psns ud eqdpment to e.nmce pakijtar's

catacity to police its w6ien bordcr. Ir 2003. Prejddr Buh mouccd thal

United stat€ inlen& to providc palhan g3 bilion iD e@odic &d miljLry.id ov6 Oe trdt 5 y6.

Nuclqr WeIFB: Patisr.r bcgd ! sFr wapoB pregm. i! tq2 ro

@cb p&ity with India bur *rs Gnicr.d du. ro US s@tis A@rding brhe Stockhoto tft.mriooat Pc&. R€3c4h Lstitur., it is etnoated rhar

lakist n ba neufactu€d .bout 30 to 50 retru w@poN. ln May 1998

latisbr dicd out si ncl@ rsts ir apoe to lrdir,s tlsrs @lid i! th!nontL Prtistlr kroM b navc a netd eapoB !rcelulr., has not Biglcdrh€ ConpeL.dirc Nuct@ Te$-Bd.Tsty, which is incld.d to bring about

a bd on ey cxplosions.

Amy snldgth N s20,000 (2002). rxR w@ ale 292,000 p€eEcl i,pamililary uiB, Nario.,l Curd, Ironrid CorF sd pa.ldlt n Rmga, Amyr.sw6 nubd aroud 500,000. In April 2004 the @y mou@d a tur_back

M61 motld .qliptMt is of Chifta. digin iftludirg ovcr 2J50 di! b6nt.ra*s. Ibd. is & lir wins with fircd-ving aiEmn ed 20 anack heticopt B.

N.vy

Thc combataDt flcd inclurt!.s scvcn Ftwl-buil di6.l s!br@ine$, rhE.oidget sbb.ti!6 for spitr'm dctiv.ry aad cight d_BririBh nigares

lbe N.vat Air wilg opentes six conba! dEmn dd trilc mcd h.licopr€B.Tbe prircipal Ev.t ba. ed.tocb,ud @ ar K@bi. Nald phtrel in 2002ror,l.d 25,000. Tha! is a Milc fo@ .sti@r.d !t 1,200 p.Eoful md ov.l

Th€ PatistaD , ir Foe cd€ inio bciry oD l4d Algur 1947_ It ts itshadqulrr.B.r Pdhlm dd is o.g&izd wirttu th@ sn.bf@@ s&16, i!rhe noflh@, c.trrEl dd sourhc@ aB of rUc 6NEy, Tbd. is a nyilg @lLg.al Risalpu &d s d.roBlticd ogirc.dng ollege a1 Kodgi C@k.

Toral str nglh in 2002 6 166 conbat aircEtt dd 45,000 D..soNt.Equipndt inclded Minge [Il, Minsc 5!, Il5s, q$ dd I-7s. It@ ecr8,000 An rm. rcsdists.

P.}15!.! Fo.eig! Poltcy

Tbc fotcign policy of Paljstu faed !.vd cnsis, .@ii!g from a n!i,b.r offacIo6, rL. mosr intort it of which, is rhc cbege rblt look pt!.. in rh.

Sopoliiiel position of Patishr. lr gcn.6l. udl l9t Plkisran ws a @uEyof 150 milion, it lct har of thc populario! alolg wil! half of iis gcosFphicrl

a@. It ea l@ded h borh South Edt s wel s Sonrh Wdl Ad! bur ir

b.cm. only ole of tbe W.slcm Ari& @enics,

Thc othd mjor inlortdt facbr in thh cdsi6, which ws playing sig nmtrolc iD lhc forcig! policy till rbar $mq ws th. nlblldt IelaiioB wirh ir3 big

neighbor bdi"- Th* Elation! wec brscd otr sv€ral b.toB rhrr cau.dihlr@e colj.efu to the ta&Bhip of Pakiirar Mosr inpqtrldy lhc

Massiv. hslility dd disrru$ prcwilcd ovcr ma!ry ycd bcrwe.n r[. two

countica, duing which three lm i@k pl&e (two of th.n be@e ofK$hnirdirpltc h 1947 ad 1965, the tar wa! ir 1971, in which India h.lped indirintcgnting Pakista! ed csr.btilhitrs Bsshd.sh).

hdid ecuFrion of $@ tabsr.ri rcriroriG, such s (ahoir, &dcontiluos rLllnd of Palistr! for rhc 5.m rditorie h.vc pur dditioidp!!s!E or th. Faigle rel.rionsbip. CoBtri 3ulpon ofhdi. ro thc opp..ition

Pattuidi g.onps ed the lane. is plaing rh€ m. role with Egard ro rhe

India! oppornion. Policy of amaments r.e between the two rivals, wjlhpadjcula rcfer@ to the dcsiE for rcquiring lerbal nnct.s w.!poc.

B6id6, ilc e.@mic probid thlt M bcirg faced by paldsr.n w.s |!c la.lfacto! in tlc qisis of its forciga lolicy. Sincc ir is a !@. dcElopjr8 @uirr,witl a &ficir of $2.E biuion i! irs FNde b6l&c. i! 196 wbich ie@c to 8.1

billion h 2003 ed it finthq incqed to $13.5 billion in 2006. Th.c is no

doubt thar, |he bud@ of 6dg)r impotu phyed a mjor role iD c@dng rhis

dencit. Tl.rcfd€, it r€mins alw.y! in a diE.eed for exteml aids, which by

ed l&9. @y rcbte ro polirical objeliva_

t$dy, if we hlL alour in pbbl.b! of Pati5taat dr.nal Flicy, tlcr b einlcnal probl.n, ehich i! !.ving . 8E t imper d irs foEiA! poticy, phich is

th. conllict for ruling by lsLs or in orhd words n]l|y inpt.dcnting rhe

Islmic s,srem. D.spne rh€ flcr ihlt lh€ c@try hs bcd .srablish.d oo

bla$ic b6h and its coBntution star.s 0ut the mjority of irs dlizm uei crcst d in Isleic sltsten it dd caling for that. Ho*ev€r, ebc p.rbt|lil6dcB @ opposirg fd the etc of tlE rulr pop6! a wcl as for tb.ir om

B.foE pmccedirg nllhd to uorh.r pojnr, w€ should uderli!€ th. fact tbat

the statcgic imporlance of Palistan to thc Welrd coutdes dd p$iculdly ro

the lJnitld Stat$ ofAme.ica, educed aftd tte disinlegation of Sovict Union

r gdml ard Ealem Europ. in prnicular, ltid to llese dwclopme s. udpaniohly duing the @ of !6iddt Zi.-d-gaq, patjsru ulcd ro phy lhe

Flie'M's relc in the egi@, i! prcrEriry rhe ilt 6ts of Uc W6r ed toprcvclt thc cxlrsion of ihe comulbn's tide in rLe Egioo_ Ib sigtrific$cehad incr.acd fidbq and th. Sovi.t hvasid of Afgbmisran, it play.d r mjorrol. ir suppoting the Mnjandea, till rhc withdmwd of rh. Soviet fo@s,Howcvd, its st stegic signifi.mc. d€ctusd, s a e$lr of which rh. USA hsnot only slopped exteding ey Eilitary ssbbn@ to patisran, but slso rcduced

'ls 4o@nic asisiaM aoD $ 500 njllion to g 280 niliioa E a @s4ucnce

to Pakirnn's @nrinurid in pmuir8 ic oeld proA@, palilri! i3 !g.ir

kcd to plry a mjor 'ole

in ay secuity arosdcnr! in the rcgion. we cr!sltlr@ie thc tajor nDdaftdrals of thc Plkjstrni foEign policy r! foum:

Fudrmeltrl. of lhe forctgr poticy

To nrMge ils conflict with India, considding irs rival n€ighbor is bigger in

sia in iem of tcdtory popdarioq nilit ty, @rony a! wcu s its aslintionto ir'losc its conrEl ovd rn vdioB mlrie of lh. $b.@rin@r To

slEoglhd bilarail ti6 with r[c P@pl.t R.ptrbtic of Chim, h@ce, it ij lhc

coeeBtore of Prkilrar's foEign poticy, .oNidding China h th€ supFrting

factor ed the powd that b fei.g t!. Indio policy of doniration h th.

To strdgtL@ rcllrioB wirh the couria of rt€ tslaDic wt4 in co$id@rio!ofthe ld tnat Pali$lm ws srabtishcd lo b. e Istmic st t , to mpowq thc

Mulim of thc subcmrinot io fi.cly pdctie then !.figioB ub. To b!'tddiablc ti6 Mth thc Arab c@iri.s in g6@t, ed Mlh r[. Kingdon of Saudj

AJabia in paniculd, nor iodulging in th. AFb digu&s.

To strqgth€n relatioDs wilh the 'Ilird World couhi$, wiil sp€cial emphlsis

or the ffcedom of thc Tlird Worl4 wbich is srriving ro Btlblish . jusl ncp*!rld .@mic ordd tbat oN[.s fan FiB ftr rb. F* tut rids, lrllEL!€dul6 thc hugc deba ofrhc p@r llird World coueica.

To forge cordial rclaiios vith ihc supd pow€6 dd to achieve tbal byMintainiry loli.y of n@'ligntun! &d fawr rlos powcrtut 6uri6 r|)!rllcn potci4 d w.l!$ited pirh rb. .rucisl @tiomt iriGls of patistaa udabore aU to @intain uity of ia t.niiori.s, id@adoc. md so@igoty, &do$r imponblly not b allow inledcF m its inEmal afiak

To plNe g@d ncighbodsg poticy eirh alt @rby ourri6, 6pei.lly witlrtu ed llc C.nrit Asid R@lbtica.

Prtilt!! el.bBr€d ir t99? i[. 506 mivcBsty of its €stNblilhmnt as erdrEic @uEy aftq a vry diffculr Dd Fi.frrl srruggle l€d to s D.rornarslaladoo of ile $b6rtiMl. P.ltut nb had wificed nor. rbe Ditlidmdty$! sbout 12 nilid bA sh€ltelslcas. A pan &@ lhe probl@ &@d by

Pati!Ln .t ib inceptid tbrd! was wm ibpos€d otr it by Indi. whicb hldd.vdtating impact on th€ economy of ihc tuly_ Ar !h. ilt hd no!!P.tbta! is licirg nu@E prcbl@ inctudirg r[. tlg@tly cxplGire

sec|rde dd .lbdc dis?u16, patticutdly in its .e-@ial c.pit t KrehiMo@va, thc mii.daFd sart of hqtility wir! Indi!, which mti6r€ thc

two coutica to dl@tc d in@d d.f@ budget dd to rush rowlr& t!6alr!).lMt path in fd of e iB@!.. rono@v, Tle n$t iDDon4t Drobtmthat uc bcilg frced by ral&tan ca! be slu)rMikd s:

. The tllditidal colllicl wilh hdia. wbich is mriluire for ser@l.Lqde dd led to ibc *!6, r$ion srill disrs b!tw6 r[. two

. Elhlic ni@ritis, i.a MarEjEn Aon Idia dd Afgh{isran stecon'plieic dr€ iltcmal potilica of pattura!.

. T!€ Econ@ic i$ue nuthd complicalcd by ibe dinililhing of rh€

chitt nc$ ofthe oveea lolisr.ni hboa, being rcptaccd by rh. l@al

cdu@t d dd iraincd wortfoM,. Tt iss ofK,sbnir, which is a iditory djlputed bctwc.tr prtbt r dd

!rdi., Pfisran dtrol irs nhd p.rt Indi! @ rol! llc ttMilingp.n India i3 @t @dy ro @nducr af.@dum to der.@ie rh. fururc ofihc cgion, while Patjliu imbrs tblt it i5 d inllSst plit of itsicmbrio, HoEqq, th. ctfon! of rh! United Nations @ stilt conriNinefor lindins solurion to thi! i$ue, which cllB @.d ctashes betv€drh. ts! cout i6 aoE dmc !o tih., ,ft@foF, pakbtan wers soe.prognss n n€gotirtioB yirh India befoE nrtha sftIgthdjn8 ofr?de

The sEwtuR of the Pakisrmi potrDcat s)srem

Tr.nmrtlotr.l l$!..-P.kft trDConfid.nc€-buildiq neaslE eutiolsty hav. b€gu to d.n$. c ioB ovdKrshnir, panicularlr sirc. th. O.iob.r 2C05 artb4u.*c in dE FsioqK8bnn no.rtb.Ls reMitu th. sn of itE world's tatg.st .rd nost

nilirdiad trribnal dis?ute wirh ponions Nd€r the de f&ro .dmjnistratio! ofchim (A}iai Chin), India (Ialmu snd Kashnir), and pa}jsr4n (Aad Kasbhn

and Norlhh Al@); ttN Military Obswa crcqp in tdj. ud pakistan

(ItNMOCIP) ha @intdned ! wU gmp of paek@!6 sincc lq9: India

d@s nor rtcogia rlkisran's ccding hsioric (abat tatrds to Chin in 1964;

in 2004, Inrli. ed Patistd i.lritut d a .6cfE h (ashbir, &d in 2005

r€sroFd bus scryie a(rus rbe higbty milirari4d Line of C@6ot. p!jris|,! hAtalo it! dbpute or de inrEcr of Indiab buildirg the Bagtih$ Dm otr th€

Ch@b Rivcr in J'mu ed Kaslni. io the World Bank lor dbikstion md ingcncdl tb. two srates srill diautc tndue Rivcr Mter shding; ro d.tu$ tcdiotrdd pltpsr diesioa o . @itift bobdary, in 2004, Indir &d ?al$t !Gwrycd a portio of ttc d,rput.d sir c@k 6tudy ar llc 4oul! of r[c pjmof Krtct; Prtisrani mps conrilu. !o show the J@gadb cLim in lldiatGujMl Shre; by 2005, Palislan, with UN Nistdce, hld cpairiared 2.3

nillion Afgld rtuees ed had sd.n*cn a ceNW lo cout the aroinilgmillion or nore. n@y of whoD mincd 1h€n oM ch@sin8; ?akis1!n bssnt roops inro.enoie ttibal arca! ,o c@trol rhe border with Afdanisbn &dste@ o.gdiz.d t norist or otha ilt.C ciN-hddd actiitiq r.guL.metings wiih Afehn and Coalirid luie aib ro tslvc pdiodic claibs ofbound.ly .nmacbndE

Th.Inlg S..rcl for Foretgr Po cy

Changcs in a coutyt foEigr policy sc a cou.quoce of charg* in itsintcmtional dvitum@t, fte "nN' tdlisial my prcvc betrfi ablc tb6 l[.old 1o slE the pbbl€6 of ddodl jtrr.grity dd iddrity. Tt ralk js 6rthcronpli@tcd by imdcqut idomarion.

Fo.clg! PoUcy ud Pohic.l D.vctoDB.lrPrtislan previ.les @ outsLndiDg hlornory fd d.iyzilg tta rcl.tio.slipb.tw..o fo..ig! policy ed potirical dd.lopmmt, d app@ach thll hr3 b.dsdly ncglccted in both political d.v.loprn nt ed foEign poticy studica. Ttinledational dvirom€rt iopings on a si.te h tluy ways. Alt lrat s b.vetbc L!t of "coping wirh the ilr.m.tioMl .nvimetrt' to M Raili Koth.ri,gwo(l3, all e afralcd, for bcnr or for woe, by qtem.l conditioB od.vot' Ext dal eisra@ ir rhc fom of .(r)tmic ed Eititary .i4 @y'uldd c.rt io circubsralc.!, hrrc bdBinblc .@s€qudq.

Tt. rclitioBhip bctwed foEign poticy ed political dcreloFn Dt 5.m ro b.afled.d by the lev.l ofrhe devclopmcnr ofa shte ed irr .@nonic srlbitiry.

Th. natw, pcsdnliry. inaScs dd bcticfs of the 6ur-yt top l.ldcrspbfoudly aFcct par@do6 of opFrrDity dd iDn@ tbc vry srltcM.nd* .dvet g.5 ald cGrs.

PAIqSTAN RILATIONS WITII INTIRNATIONAL AND Rf,CIONAL

ORGANISATIONS

Pdfttlo .!d tt. sAARcTbe South Asid Assiarid fo. Rcgidsl C@FBtioo (SAARC) ruesbblilhcd wbh iG Ctdt€r ws fomrlly .dopt€d on D..db.r S, 1985 by the

IIa& of Sratc of cov€rmelt of Bdgladdh, Bhula4 India, Maldivar Nepal,

P.tislar d'.ws $tbfacrid Aod thc fa.r lb gowing arbrtjoD b.bo bcing

.@iv€d by al6 rbar fav@ rhc poor srch s c6di6dor ofpovdryr wt&r ofmme4 ed child!!4 haltb, agri@lne dd .ural dw.lopndr crc, wc @d 10

adopt Pngbal'c approachB which dc se4itiv. ro our circmsrar@ mdgcared to rc.lillic obj&dv* if w, de to a.hieve thc goal of €gionatc@p€6tion for progrcs &d prospcriry h the Fgid.

The E@noDlc Dheosion firb D-8

D-8, ako knov! 6 D€velopios"8 is e almsencnr fo. d€v€lolmdrcoopentioD among th€ followinS n mb€r coDrica: Banglr(l€sh, EgJFi,

I!.loneria, !a, Malaysis, Nig.da, Saudi AEbia, ?akistar dd Turkey. Th€obj@tivcs ol D-8 m ro ioprovc dcvctoping @uiriq pGitions h rbe edld4dont diEBiry dd cHtc n.w oppDnuirie ir trde Flatio.r @teccparticipalior in d.cisi@-E kinB at lrc iote@riotr l lwel ad prcvidc b€tt r

Th. i.leo of .oopmtior b€rwei mjor Mulin drycloprS couEle w6nootcd by Dr. N.deti! Erbarq llc folm pri@ MiDisr.. of Tu*.y dui,ga Smi@ o! "CooFation i! Dcvcto![Me, betd i! Istanbut in O.iobq t96_Tle eroup mybioned coop@riod dong @uris ftom rcgioB srr.lchilgfion South E.!t Asia io Atis, Rcprcsdrarives fron Beglad.sh, EgWt,Indoneia, I!an, Malarsia, Nigdi. &d patii.n rre&tetl rh. S.niu. The D-8

m tumlly erablished ar- a Sumi of IIad! of Sr.G/covd@t itr

Irranbd h.ld @ l5 Ju. t997.

Tbc lst&bul D.claslioq sdoptcd by t\€ ilaugwl Sunnir @visged

iryroving dcvcloping @ultia' posilioD i! r[e wodd .onomy, divdiryinged c@tilg nd olporhbilie i! trrdc clatic, dt&.iog prticipatim ird.cirio! rDling n the intenarional l.v€t &d prcvidilg bctrd slandrrds oflivirg to l!. md$s of the tlmbq coutrics, o rhc objecriva of the creup.

Tle p.lcipal orgd of ihc D-8 F thc Sllmi! rh. Coucil dd D.Comilsiotr. Th. Sl|lmit is lh. slpEnc orge ald is cmpoeld of &c H.ltrtof Star./Govtuot of the lr@bd @urrid md is coovdcd bi@ually_ Th€

coucil @npnsd MinisteE ir-ch.tge of loEis! Af&i6 sd is the politicat

deision-@king orgm. The Comi$ion is the deturivc orgu of the D-8 sdn oDlosed of sdq ollici.ls lppoinicd by then @p6tivc turrie. To

$psvilc rh. pbvilior of sdiB !t ihc netitr8! ed to 6w u etficidt@I'llMicarion ool8 |r@bq slaas, a C@rdicting Unit haded by dEr@trtive Dncctor has bc@ .sbbtished h lsianbul.

Tea sdtoft havc betr id@1i6cd for c@p€ndd dd prej@t dcvelopncnt bythe D-8. The. s6ro6 bavc ba aw.rd.d ro difl.mr n.nbd @uftis toc@rdidt etion in th.i. om .t sigatcd sph€c of d*GlopMt s folios:l Es|lblishmor of m Internariorat Mdteling dd Tnding Conpey

(Ecypo.

2. workrhop on Poverty Allcviarion (r.don$i').3. Esrablishra of d hdsri.l ed Tab@logi€l Dar. BanL Nerwdt

'mnsDB (IE!).

4. Establistm.rt ofTat trt Schmcs 0|rsrlmce), ilcludirg joi vdnlesbetw€en d'c compuiq ofD-8 (Malaysia)_

5. Coop.ration for tne D€v.lopmcnt of Inlmd ald Colllat Aqucult@

6. D6ign, DcvclopDfr! Pmducrio4 ed Merk ting of AgdohnlAiecft Crurlcy).

P.ihe Minister of ?akisran n tb. foMtr D-E sllmit u8.d th€ D,8 mtio.! logrv.

'npetus !o tbc .conomic &tivily by moving badc bari4_ He gav. a

six-loitrt plin to turrbq enb!@ co.op@rioD withi! thc gDup. Ttlc pLn

includcd: R.d&tior bd .liftiMtion of rlrifrs 6d pan-trrifs, bmmizarionor sr,rdards dd siolplfi@tior ol cwton pq.drc, Gsrmclbding ofhsportation and comuicano., proyision of .fford.bl€ hmltbcft,.xpeid or co-op.ration itr des of irf@tioD r.chroto$, dd bighdleming, ud st cngildilg of rbe lltanblthosed D-8 @ordiErim mir To

cxpcdit itr'llddrlrion of lhc ddisiotrs of D8 @uhiae' |tdr (Ichru)3ulmt @ting, l0 mi16 wiU bc h.td. Of 6.s., hti$ao will hNr fou

E onooic C@p.rarion Orgdtltion (ECO) is a ilrd-gov.|motal Fsionatorgdiztion qiablish.d in 1985 by tran, frhsrar ad Trl*ey for tn€ purpos

of sutaimble socio-e@nonic devctoDn€nt of lhe McDb.r Stars.

ECO n tbe $@crso. orgdn don of Rcgional C@p.ntion tur DeveloDo@t(RCD) which Etuin.d acriw 6om t964\pro t9j9.

h 1992, lle Oqeization k qpard€d 0o inctudc sven trw nanb.R,nm.ly: lslanic Sbtc of Afghdisra4 R.pubtic of A&ftaijs4 R.pubtic ofK@ldstaq Kyr$z Rcpubtic, R9ubtic of Tajikisr.!, Tuh.oista, and

This egid @uld obvisly tror tlmin unaff@t d by rhis ras.fomlion. Th.winG of li.cdon bl* .cJN cdF.l Asia dd rbe Cauc6l' t! thcir bid !oop.n up to the ouBide worl4 dd s a tuifdtari@ of dEn uge to Birc rh.ir

histonc affrities with rllc peoples of lh4 patiste and Tukcy, th. newly_

indepo.lcnr Replblics of Aabaijd, Kr2a}l6i!n, Kyrgl ral, Tljftisirl'TulDqistrn aDd U2b.tistrn soudr ECO.S mcmb€ship. Ttey wft ddityadnined. Af8bmista abo fouowed sui! ECO rhu! traDfom€d toD a snuU

trilatedl e.liry inro a mjor grcuping of tcn Mmh.tsSt 16_

The a\pand.d ECO covft.t a tcritory of @rc lbd 7 nillim squGkilo@ter! - ilreNely ricn in natuFl resorc.! including oil ed es. Itmb6@d ova 300 nilliotr teplc - hard vorting dd inbucd ,ith gMtmlrcp@@id spirit Tt€ mulld rcbrioN of Mmbd_Star6 cxud.d hdnorydd .o.diality. Tley all posBsd ihc rquisite polirical wil to mte ECO .

Tr'e Orgniador defrn.d rhe lmg t.m p4pectiv. ed sectoEl prionrie inrLe fom of rbe acrior plcttc Qu.ia pld of Actid (1993), rh. rslatrbulDdla..tio! (1993), dd thc projst ori.nrd Atbary Oudine platr (t 993). n wdrcalized ftom the ou6cr rhat objcctivc! could be tutfiu.d drty if a besimiogwa rEd. &on th€ nD&m.rtab. In Eco, the nDdandrals *rE d.6n d b b€

r. D.velopDmr of hansport ed commiolion! infrastunrciii. Facilit tion ofttrdc dd inverhqr; ediii Eretive u of the Br.erry r.solj]G.

Sindldou Mih rhc idorifidrioo of priority aras, the t sk or iBtinrlion_buildilg was begun. IE Tbird ECO Sumir H.ld in Isl.mbart in Mdch 1995

witn$sed the signing of docments pcrlainine ro Six ECO t $lirutioB tud tworcero@i .rugmdl3, Tbd. includ.d: ECO T6.t ed D€vclopnor B&t,ECO Rcinslme Comp&t ECO Shipping Cosp.ny, ECO AiL ECO CuhEllnstitut (T€hnn) ed ECO scicncc Foudation (kltuba.t). TIE rwo

agchats rbar bive coft into .f6r @, ECO Tt$ir Thde Agcrctrt and

Astlddt o! Simplificarior of Visi prcccdues for &c BuiGsme! of ECo

In 1998, duiry rhc 8b ECO Council of Minist s (COM) Meling, rhc @ucildgn d the Chfrd of ECO Education lnsritute b b. at blisheit in Turtcy; a

Mdomdu of Und€ntdndins on Co,openrioD Agstut smu8gliq md

Rord Dd R.ilmy Ltnks

In line wilh lle seI of prioriri€s, t cmendou rttlorion hs b.6 devotcd ro the

dcvclopmt of physical irtzstluctuE_ Th. prcjei{d.l&d At lly Oudine

?lan udNor€s thc itrrpodecc of a modm lrrllpon dd comunicari@infrastrucnr tukiry tbe ECO n Ebq-siat€s v h dch othd ed pil! rh.oubid. wdld. Ttc Pla @visagesi

a) E@blilg rocb ro rnvel Aom on. dd ofthc aSion to rh. olhqib) El!@ion dd int.gdtion of Mtjon l oilway nclwodc;c) Expdsiotr ofai. com4ioN io comect the capirak and mjor ci1i6 or

*h ot ile ECO coudrigid) Exp@sion ofport hciliris ro hedL e,boE. r!.t ofthc Egion; &d.) CotulBion of bilat€Evnultitat dl agEm.nb wirbin or bcyond rh.

rcgion to &cililale such rransporr i&luding @ces thrcug! !w bordqed tuloF pos$ $.1 my bc Bt btbhed

Thc olhe! Fiority e€a is rade facilibtion. In thar @ntdr, I MoU mconcluded tu 1992 atlblishjns a pEfe@lal Teitf Atus@ D.rwhPa*isbr, ban ed ftrtcy. It prcvidcs ftr l0 Fenr Eductiotr i! tritts on rlist ofsp€cfic iids. Withjn irs fr.ruworh it is bcing ddavored to gldualyrcduce taril& dd non-tariff bariers s well s €xped rhc lisr of qomodiries

lo. pEf@tial ir@rn@t

To supplme.r the eflorts for trlde promotiotr, tpo important i.stundrs viz.tbc ECO Ttsit Tradc Ag@rr dd the A8!E lMt on SiE?lifiotio! ofvis PMcd'G for rbc Buine(so of ECo courtiB rc@ @nctudcd dudngthe 1995 BCO Sujmii ald entercd into fNe in Dccenbq 199? md M@h1998 Elp.ctivety. Thc .stablishbot of the Tath dd Develo!,ncnt Bank inIstalbul &d rh. Rc,inlufuce Conpby in (ec[i would povide nfindinpetN to ondc€d inF. dd incq€gioDAt rrad.,

E!.rg/'I!c ECO egiotr is i@ly nch in .n rgy rcewe--ranicutrty oil od96. Thc .xtraction and efe.rive uritiation ofrhcse rdou@s holds tbe key toreSr@r progrqs ed prosp€riry. Sreps biv. bem rak n ro con@trratc rgiomlco!@tion in rhc fi.ld of det8y by pl@ilg a trctwo* of 8s &d oilpipclilca ed ilt€rcomccrio! ofpowd griG.

An6 Sclrdbd ll, 2001, patisr.!'s prenindcc within lhc br.tution tco@uity irqeed significetly, 4s ir pl€dged ir! altdce with rtc U,S. intne vd aga'rct ldor and nade a .ohnitmmr io rhwsl t€ftn$ cnnps wirtinirs oh bo.d6. ltistoricilly, palbtd btu bad diftc$ ed volatil. rclatioNwirl Indir, l@gstandilg dc retatoB wirh CbiD, dlajive sccuity ddeco&dic int@ls in rhc Ambid culf, aad eidFmging bilat 6t rclationswith thc Uoited St 16 dd oibd Wstcm coulrics, ad ha qprcsscd ! stroDg

dqirc for a sraue Afghdjlta!_

h Ihc la$ sdeEl ycars, th€ tndGplkisran rclario8bip bs vca.d sheplybetw.eD Epp@bmftr ud @n1lid. Ana d<iDg offc. i! Febnury lq7,Priae Minisrd Naw Stdif movcd ro FsMe ofijcial dialog wirl India Anmb.r of n etings at i!. f@ign scc.ctary &d primc Mre.ist lcrcl lookplae, wii! positivc afiospldie bu tjr{. @Ier! progB. Tbe FLtiotrehi!mprovql lDrk€dty wid hdi& prin Minisrer Vljpaye. nsv€t.d to rjloc

for a sumit with Shrif in rebrosry 1999. Thqc was coNideiabte hoDe 1hat

tbe me.nrg could lcad ro a breaktsough.

Unfonuaiely, in spring t999 intilrrabB non la*istd occDpicd posirioft o!the Indie side of thc Line of Conrol in rh. .cmore, @utdnos &q of(,$nir nd Kdgil, rh@tening thc ability of Indh to surply ir, fft6 i,Sirchd Cl&iq. By dly srllmd, Friou Sghling tu.d ia tE rrail *cld.Tle itrfiltFtoa witkrcw folowing a m.ering betwco prim€ Mintuid Sbdifed Peidat Clin(on in July. R.tatioN betw6 India dd p*ist n w@patticul&ly strained duing rhe 1999 coup in Isl@b!d. TLeq j$t wrs afdthe Septembd ll,200l attach on rhe U t€d Sr.i€, m atiack on India's

Pdlim@i otr Dadb.r t3 by a suicidc bonbd 6u1her lrlhed tbis

Th€ proslEcts for ben* rclad@ betw.6 rndia dd palisra! impovcd in @tyJdury ?004 wt n a sl|mit n aing of rh. Sour! Asid Als@iatid fdRegio.il C@pdtion (SA RC) pmin.d tndia,s ftim6 Mini .. V.jprye lomeet wii! Presidot Mulhmal

Rel.atoB rirh Afgnrlbt n

Following the 1979 Sovi.t iivaioD ofAfgh&ista4 th€ ?ahstad Cov€mcntlbycd a vilal rol€ in supportilg the Afgbtu Bistarce nov€mcnr rld AsistilgAlgna dtugq. Anc! thc Sovict wirhdrz*et in Fcbtu ry 1989, prtjsr.4 wirb@op.ot'd fron th. wortd comu ry, continued !o povide di.Bive $4ponlbr dhplaced Afghes, In 1999, DoE thtu 1.2 oillion rcgisrcr.d Afgh&retugas t.mined itr Palistaa Pakisr& ws orc of t@ couhiB ro rrostcthc Talibu gor@D.nr ofAfgtdtur.r Scpremh.r t t, 200I euscd ?.ki5ta, to6scas iB rladou witb the Talib4 ,ceine dd suppon the u.s, objerivd inOpdtbn Eduilg Frc.doo to rcnove ibm ftom powd. patisla! Ir!pnblicly .rpBed ic alpporr of Afghdjsian\ pGiddt K,ai ail bapledg.d $ 100 nillion in support for Afgheistant r.cosrrucrion.

Peopl6 Repubtc of Cbh.ln 1950, Pali$d wN! amng rhc fst coNiics ro t@gliz (hc ?@plc's

RQublic of Chir'a (P.RC.} Iollowing rhe Sino-tndiar hostiliri$ of 1962,

Pahst !\ Elrt'ion! with Chiu beme srrdgd; liacc thd, ihe two coutrisnavc b.6 egubrly cxcbogns hidlwel visirs eeutilg i! a ftj€ty ofaAtlm.ftg CLim ha prcvided eondiq dilirary, sd lehnic.l ssbrarce roPalisl&. Iavorabl€ Flatic wir.\ Cbim have been a pilh of pahstar\

foreig! policy. The Pcopld Republic of chid stroogly supported paldst n s

oppositid to Sovicr involvdar in Afghdisa.n &d t p.@iEd by patista!

a a rc8iolal cout ry.id1 to India &d RBia.

Ir.! .!d t[€ Anbl.! Cutf

Hilto.ic.llr Pa&istai hes hld cto6c geopoliti@l dd cuhnsl,rcligiou! lilragBwilh Im Ho*ever, rraiN in thc rclariotr$ip .ppcsed in th€ l.!t d@de,Plkbtad &d L"n suppon.d opposing factic in lhc Afghd conflict, Atso,

soroc Palistant sup@t Llnie slpport fo. thc snriatr violacc which hAplagucd PaListaa How.vq, Flario.s b.twd th. t*r .ourri6 t v. imprcvcd

sincc 0Eir opinions ro{ard Afehdisran lave conv.rgcd with ihc falt of ileTaliban, dd rle rwo couiris have agB.d ro ptEy a col4tive rotc ir rhe

I@Bituctrd pc.s of tla! Egioa, BolL @uEi6 h.vc otrGld.d rbsl wirh|ne moval of tb. min diff@cs $iich serdrred thm, they a.. m th. road

io strohg md lasring friently r.tation!.

Palistar ba prcvad.d nilirary p.@d.t b snEgthd ODlf{ratc dcf.E6 ddto rcinfoee irs oM stuiry intersrs io the e4

U.lt.d Strts ofADerlqftc U.itcd Star6 dd Patisnn dtabtishcd diploturic Flalios b 194?_ TtU.S, agr€@t to Dovid€ €conooic dd nitiLry ssis1!n@ to lakisrar ed rhe

latrqt parb4bip in rh€ Bagtdad PIC/CENTO &d SBATO srMgtha€{t&btions betwtu rhc wo mtim. Howcvd, ilc U.S. sustdjion ofmitir..y

asisbncc duing the 1965 Ildc?atirbr wd gen nlld a widspud feeline inI'akiltaD tlnt rle lJnir.d Siates ws nor a rctablc aly. EvE tbough $e United

Satds spdded Filirary Nisra.@ lo both our.ics inwlv.it i! thc.o.nic!tbe susF€Bion of aid af|4ted pakisru nucb moE severcly, Coduly,relatids inpbved ald 'fu et6 w.€.mewed in t975. tAe4 i! April l9?9,the Unitcd Stai6 or of @lonic sisra@ ro patilraA .xepr fooddsisllEc, as requiEd udd rhc Symington Amddsdr ro thc FoEig!Ass'!lm4 Act of 196l, du€ to c@m about patisld's Dnclw po&m.

Thc Soviel inksion of Afgrmis.an i! Dcenber t 9?9 higbrighicd rhc comonintelest of ?akista! ed rh. Uniied Srsrcs in perce and st Uity

'n South Asia.

In 1981, tbe Udtcd Srat s dd pakthn rg@d on ! $3,2 bilion nilirary ddeoDonic .$islr!e rrclFd aircd at [.tping prtista! d.ll wir! th.hcighcn d tbrd to sccuity in the Egion tud iE @onomic dcvctopmmt needs,

Reogdzitrg dtioDal Guiry co@ms dd ac.lpling ratislant assl|!2lBrbat it did not ilrcnd ro coEtrucr a Nclee wapoq congrcss waived

resFictions (Srajnglon Amendmeni) on njtilary assistance io patislan. rnMmh 1986, the rwo cout i6 asrc.d on a saord nultiyu (!y 1988-93) t4binion .co@mic d.v.lopmdr ad seuiry Nisrae pregre. On Ocrobq t,1990, how.v€r, th€ UDit€d Star.s sup.nded all nili|'ry ssistanc. &d rcweoromic rid to Paljsta! udd the Pr6ster Ai6dnd! whicb Equned tbalihc P6id€d cerrift amualy rbar p.kista! ..do.s .or ,csN a mcr@

ftde I'eve bea sev@l inciddrs of violde asaiBi Ameri@ ofiiciab,ndU.S. ni$ion eDlloys in Pa&isran, h Novabd 1979, fat . trlm6 rhat rh.Unibd Stalcs hld panicipat d in rh. scim of ihc crud Mcqu. in M@qptuvokcd a mob ait ch on lhe U,S. Bhbassy in Isldmb.d In 1989, ih€rc wse atbck on ihe ,Andicaa Ce d itr btm.b64 wh@ six patisrrds r@killcd ir the m$tu with the polic.. In M@h 199j. rwo Aqsi6 cmploy€a

of th€ com ate ir (nlachi were killcd dd o!€ wouded iq e athch on the

honoicoffic. shurlc. In Novmbd 1997, fou U.S. ouncssD@ wet!brulally hudqed wbilc beins d.ivd ro wo* in K.nchi.

The deisim by hdia ro conduct nucLd t sts ir May 1998 ed pakista!,!

@tching BpoM scr b6ck U.S_ rclrtj@ in th. Egid, which brd s@lacw.d U.S, Govcmot int€6t duing r[e s@ond Clirto! Ad$idsFatiol

Tte preiddtial vbit sc,bcdlicrt lor in. fi6r qulnd of 1998 ws posrFncdand, ud* the cl.m Am.ndno! sctioG Grrict d the prcvti@ ofcedirs.nilit iy sals. cconomic asisi&@ dd lo@ to E 8ov€ment. TIE Ocrobr1999 ov.nlroe of ihc d€nocatically cl6r€<t Sb{if gov€mclr EjBg.Ert d.ddition l laya of setio6 u{da Sc.rion 508 of r!. F@i8n Appop.ialicAct, which ilclud. rc3rictios on forign nilitary 6@ing dd .cdonicasistlec. U.S. Covcmmdr ssbiance ro laktra, wd linitq<t natuly ro

Etugcc ard courernarmtics Nilt !cc.

RelatioN between Patisrd dd Irdia hav€ foudeEd on the issu. of l<4hni..a disput d terilory divided by a.cr*fe line n gotit&d by rb. LtN in 1949.

Oa 2E May 1998 Patisrrr cnnicd olr 6w nuctrlr r6rs i! ihc d€seru ofBalochistan in qpons€ io India's &sis e&tid itr th. ho.th. US pnsiddr BillClinton invok€d setiom blt pakisr.n subkqeotly cui€d out ! lixth testWiU 66t stcps towad! a ndtu !gl!mm! rL. USA mcd mosr scri6.On ll Jue, following Idia,s .xaple, ?akistd .eou!@d a utat almodtonum on nuclcar te61s. on 12 ocbbe. 1999 the nilillry.lticl c4.Pwe Muhdaf, &iad pok in s coup, dcnlDwing llc .t no@tielty-er@&d gov.ment of ttin Midsr4 Naw@ s[arit nE cou!, vbich lasr.dl€$ lhan lbe hous, Ms l.mched atcr the pnm. minisrd bad tri.d to dimisCd. Msh!@{ ftom his position a my chef of sbii Ttc fomd pim.nilist r ud Lis s@ior alti6 qd pt c.d udd hou. .ct &d rutscqna{ylut od rrial, Naw Shrifvd foud guilry of com!,rio! dd s€rcnced b lifc

inp.isoMcnt. TIe coup mrked the lirst tine in hislory rhat a miliw Fgim.bid takd ovQ e &ffimcd nel@ poe€r

Tle O.gdisalior of llldj. Co.fwrcq is d inrd-govm@tat orgmietion

Srcuping ffty*ix $ar6, Th6. Slar6 dcci&d ro poot rt.i, lsulq togalhd,enbinc tb.n .fods bd slek wilh on. 6ie ro saf€gNard tbc int Est edensE tle progres ed vetl-being of their people! and th6e of orhd tuli4

The O.gdidtion wEs diablbhed in Rabs! Kinsdon of Mo@co, on 12 Rljab1389rI (25 s€pt€mbs 1969) wher thc f6r @ting of rhc lcldlE of rhc

Isbnjc wodd B lcld in &is ciry i. *de ofrhe climiirl aM! FrFrzr.<t on21 AuSur 1969, by Zionist €lmdts agaiost At-Aqsa Mosqle, in oc@pi€dJ@alan Itw6 i .cd in ordsro d.f.ndite honour,.tigniry,nd flirh of theMNlir!6, fae tbis bind ch,llagc lNnchcd in i[. hoty city ofAl-eds $ d@io Mulins of rhc worlddd againsr tb. MGqu of At_&sa, tbc filsl eibtadd thhd holi€st Strin. oflsla4 ftat the l€a.les ofrhe MBlin world, at theirSdDit in Raba! scized that €v@t, wtich b@tgh abour m,ninoN Mtdwidc@nd.lmri@ to rhid( togalto of rh.i, q)md ae art Esta rn fa@r€qufied b oveMmc t].ir differcncs, bite tud lay rLe foudaiioD of thisrarge greuping of Slatcs, tbat is, th€ Oryeisrion of tbe hlanic Conf€d@wbich lbcy arusl€d, ir alelute priority, witb libcrari4 Jerudd ad Al_Aqe non Zidist oc@pariotr,

The OIC w6 nulualy a8@€d upon by Mulin Couhi6, in rlc fiBr IslanicSlllmir Cotrfadce $ts hetd d 22-25 Se?reDbd, t969 in Rlbat dpital ofMobcoo, conp.ising 46 star6 al the $ne. Kirg Abdultah At_HaI3n Evalslhat d( thc 6d ol &c Confe.dc., a D.cturio! w& .iged to thc cf.ct tt lMaliE gov€lrrlM|l would lmuh yirh ! vid to pm@dra b.tw@

ln@clv6 cloF cooFFtion ad nutual dsista!@, They vould.l5o .xt.ndcoop€iation in the cconomic, scientific, cdtual ed spiritut fi.ld in the lightof IslMic t€chiDgs Furrhd, n ws d@id.d ro hold e Isl.Dic FoEig!Miristc6, Confeercc ro qotov. wlys tud mcds of inpl.moring rh€

drcisior of the Su@it Confqeca As r Esult, the OBmization of Isl.nicCmlftrce s6 fouitcd vftl its C.n 6l S€eluid in J€dda!, Srudi Aft]ia.

Th€ combincd population ofOIC is ovd de bilrior. The OrC aynboliz4 the

hop6 ed as?ihtiotu of Mutibs, who woutd lile io k€@ pac. with the .6r ofthe wo.ld. Tl| OIC hs speific objarivG hdrioned h ic Ch6. Tb*objectivG e sw.al but the pmmobl @e is to promote Istamic sliddiiytuotrg jts n nb* slat s, Also the OIC lim bwatd! cdelidaling @opdriondo4 mmb.. star€ i! @notuic, s@ial, cutrMl, *i@tific sd othdprodetiv. Ii.ld ofhurm .ctiviry, Th6 OtEeiation is aLo comined to rhcelimi.ation ofraciat seglgatjoA dis.nniBlion and rhc vicisiMes ofcoloniatods. lsld is ssltially a $pEo.dd, w[ich birds hMity rogcth.r od l[.adhqsu of rhis frilh e yovd into one eltity rr.Noding alt baEi6-g@grphiq lireuistic or dcial. Th. Isldic World m ftaSmdted ddatomilcd to eN€ ibc vcsrcd int@is of tnc pow.rs! vbjch dcemed i1

elp.ldidr to dode rttc col@tiE foEc of iB mity.

Tle OIC i! involv€d i! c@lidg eonohic c@lerari@ to prcmor. rra.t ddinvatr.nl, 6 well as sciGe@nooic d.vetopncnr thrcuC:. Sthgthdiry hune re$les d€velopmot snrll e<t ,rcdiun sizcd

dtdprisa, nmcial s..to dd @nonic !:lea.'mr. ?.omtilg.rossbo.dqinvcsrlEnroplDrtulics,. T.ade, techology snd technical co_opendon progam. Developingph)isic.lintrlsrtucrte.

TIc implmoration of the Srllcgic pld ofAtiotr (SpA) wu .do!t d !t the ?sSumn io 1994 ro shcngthd e.oromic dd com.rcial coop.qlion a@lgOIC nenbq siates. The S?A had

'dcnrified 10 priority @as for coopmtion

including food, ag.iculturt dd rMl developn€nq indurry; cocrgy ddniningj foreigD ia.lq r-esrbrr ad @.i|]mi@rions; rouisnj nolcy; bs,tingtud ceital flos; t cbroloey and r.chnical oopcBlio4 Lum rcstrcdcv€lopmdt and cnvircMmt, Howevd, the paniciplrion in deimplcd.ntation of rhe prcps.d pmjmtr of the SpA EmiB voluEij' for

Thc OIC is coDposcd ofthe following tuin bodi6:. ftc C@{d.&c of Xscr dd Hca.ls of Sralc

supme alutonry of the olgaja$m whichyqB b lay tlown rhe Orgdialiont poli€y.

Ite Conler€ncc of Focigo MinjsteB, which nels o&c a yar bexmine r prcgr6e Eport on thc ituplen€nt tior o{ its dccisioG ra}e!wjthin the i.aD.wort of ile policy deEned by the Islmic Sumit

Thc fin@ Comitrces wde s.r !p rhar e concdncd wirh inporta.r is$es,seh aB ixose rcgarding pdestine, Afehaisrd, Bosnir dd Herz€govi@ etc.Tbe nwbd of iBtitutios iNolved in the achievddr of rhe Oryeiation\obj.ctirB includ. rwdtyqe culruEl, $i@tific, doromiq t.g.l, Fiqb,a@ci.l, srEns, &chrical, educatiool, vo@tional, infomri@L soci.l mdhhe-affliB iBrirurioB. Th.se wce categonred &ording to rhcn positiotr

witLi! the filDcwork of rhe OtC (rhc pa@r Conpoly) &d wcrc inuonparnnmlalizd inro subsidiary org&s, sleiali4! iBriftrtio6 {d alfiliatedinsiitutioc. ftd. h.adquartG havi bem distiblcd MolE u. vanousblmi. capilab ad .ites which arc acting for the acnevdert or tleir

sspinriods in the s.ni@ of the lstmic Utrmah. The mjq bedquarr.n

a) Islanic Developrcnt B$1, IDB, sirDad i! Jcdd"b

b) Isl@ic s.iarific EdncatioDl ed C\ttunl Orgeiatioa ISESCO,

sitnatcd in Rabati

c) Isldic Fiqh A@.LDy, situr.d in Jedrt ld) Igldic Univdiry in Sa, (Nid.y, capital of Nig., tur ruch

.) IslMic univ*ity in Mbali, KaDpola (epitsl ofused.) fd English

D Islmic Univqsity in Kula LMpu Gapilal of MalaFi!)jg) blmic Univ6iry in Dh.ra, Brlglad6hh) Islrmic Iatitutc for Scidce ed Tabnology in Dhaka, Balgladdh;i) Islamic Stais B.oadcsiing Orsdizatioa in Je.tdaEj) IslaEic Inte@rio@l Nm A8.ncy ir J€d.!at; edk) haloic cdrd tor R.edch, A.t ud cultue, IRcIcA s4red in

In rddidon, ihe list of obsrvcB Sral6 e: R.pubtic of B@ia ddHerzsoviM, Cent6l Africd Republi., Replblic of Coie d,lvoiD atrd

TlDil"nd Wtilc M6lim Comunid se: j\!!.jsb Comuiry of Kibrii add

More NrtionEl Lib@tion Frctrt.

Irhoi. Datopodt B.!k6Tlc Isldjc Bait O.edisstid @ 6rablished on Dqmbd 1973 dd bothcoulrics has joined m€mbaBhip orthe bdl in pE@c€ of Declanton in rhe

CoDleI€4 of Fi@e Miaisris of hurlin couEia.

Gpintions in the scrvicc of lle Islamic Utlmh. The @jo. hadqurtes

a) Isleic Developmcnr Bank, IDB, linBted in Jcddtuj

b) Llhic Scientitc Educatio@t ed CdnDt OrSeiztion, ISESCO,

sinatcd in Rabar;

c) lslmic Fiqb Acadey, situt d in Jc.l,.t!b

d) hlamic Unive$ity i! Sry, (Nid€y, capii.l or Nig{) fm FMcb

.) Islmic Utrivcity in Mbali, Klnpala (.apiral ofustud!) for Etrglijh

f) klMic Univdity in Ku.ta LMpu (qlital of Mdaysia)jg) Isluic utriGity in Dhata, Bdglad6rqh) hl.ni. Instirur. for S.i@e &d T.chlology in Dhatr, Bbstaddh;i) hlmic Sut s Broadcsting Orgeiztion, i! Jc.ldal,j) IslMic Intemrion l Nq Agdcy in Jeddd; sdk) lslnic cotcr fo. Rcsach, An ud C\lnrc, TRCICA sated in

In addirion. the li!1 of ob6dd St res er Rcpublic of Boe,ia &dtl€@sovina, Central AAicd Replblic, Replblic of Cole d,lvoiE ddTliland. While Mulim CoMitics de Turkish Cdnuity of Kibris, ddMorc Nari@l Libcdiion Frenr

Ishnlc Dalopn€nr Bork6the lslrmic BErk Orgeisatio! eas .srablishe.t on Dadbqr t9?3 !.d bolhcmtr,ct ha joined nhb.Ehr:! of rhc batrk itr pNude of Del.Erion in l[.ConJercrce of Fi@c. Mi slries ofmlslim coutrics,

Th. hldic Dcvetop@nr Balr (tDB) is D i!&mdo@l fredal isliturioncatablished ir pNhc. ofthe Declasiion of Intcnt issued by U. Confftnceof !i@c. Miaisrm of MlstiD Courtics held in ,eddlh i! Db e,a.tdr1393H, cdBpondiry to D..dbd t9?3. The l!.uguEl M@ting ofrhe Bosrdof C{vmo6 took ptac. in Rajab t395t{, cofts?onding to Juty 1975, ed rh.Bek M fmlty opo.d on 15 Stawal 1395H coresFtrdirg ro 20 Octobdt915.

Th. purpcc of rh€ Ba.t is ro fGl.r the @mEi. dcvcropmdr asr soci.tprogr€ss of medb€r courtri6 ed Muslin cohmuio$ n nor-ncmbercoutne tudividu.lly a welt 4 jointty in a@rddc. yith thc priaipl6 ofShdai i.c. lsldic L.w_

Total erporB of goods aDd sFic6 of ncrnbd coutrics h.ye incr.astt Nl$oltfiree-rolds liom US$ 295 biuio! i! 1990 io US$ 765 biUion in 2004. Mataysia(US$ 140 billion) ed sludi AEbia (USJ 132 billion) w@ rE otrty 6uiri6w'rh e4orll above USt lO0 bilior in 2004 whitc, al ih€ orhd dtcn,Ouinea-Bissa! (Us$ 98 mjltion) Dd Cotuoon (US$ J9 nillion) had exponsles the US$ l0O niltion eacb tu 2004.

Tbc irDorts of g@ds dd eryiB of the n€nb€r o!!tti* doubl€d &om US$298 billion in 1990 to US$ 595 bittion in 2004. Tu.tcy ud Mabrsi! rc rlErop inlorteB of goo& sd srvies in 20G4. Mltarsia ws U€ @st oFneconony in 2004, foltowed by Ba!.aii, Tutneniltan, md MEldives. N*lytwo.tlinls of l)hbd @uEi6 hnd opded up O.ir @llmy o€r*b oed*.d. (19E5-1994) ed eorhq (l9j-2004). Duine 2000_2004, .xlol.s ofSoot's ed scFicer suoass.d the corrcapoding impo.ts, Mlitrg lhe mcnbdcoutne a eroup ofner cxpon6.

ftc Gm of tradE of n mbq coetrie .s a grcu! have flufilated ovd r[ey.a. At .our.y Lv.l. &d 200 L b 2002, only I I odbd @urrid @dt€da improvcmdt in tem oftradc.

Int:-lDB m.mbd 6utd6' tl:<rc, ehich m bc pturi& for n..sing ir.dtcat ofcmleBtior.nd intcgnti@. [B rccordcd & upward Edd duing lheperiod 2003-2004. Tbe prcponio. of IntriJDB mdb€r coutrie,I]@hlndis 4porls i! loral dporr! Eched t3.j pd cdr i! 2004 tom ll.4pe..rr in 190. Simitarlt ih. sha. of inE -IDB mehbcr @u!r.i6,@r.hedise impoft totat impo.rs incr.s.d to 16 p.r cdt iD 2004 fion l2.t

h t.m of dirccrion of dadc, rhc sha of mcshadi!! cxporrs of IDB ndbir@u ri6 d a goup in rh.i. tolrl m.rchedi& .xpons to indusbiat coutri€sba dropp.d fton 62 pd ce in l99O !o 52 pd c6! in 2004 whibt thc she too +iponing coutrics hrs ind!{rcd stiShtly tDo 5 pcrc@1in I90 ro 6 Frcdt itr 2004. simjlaly, &e shar of .xporB of rDB d€Dbq\ .oulri6 as a

8rcup jn tbeir rolal cxpons ro non{il ddelopitrg 6utt6 rncMedsubsbathly aon 27 pcEenr in l99o io lE per@r ir 2004.

In rcdru ofdiretion of impo.ls, rh€ shrE of mchardis€ inFtu of tn nb€r@untie3 as a group in ilek roial nerchddise imporis from indushirl crblriesdDpp.d &@ 65 p.e in 190 ro 45 p* dr i! 2004, while th.ir sb@ ofimporrs &om oilaFniry couiri.s hrs ince$d ton ?.5 percar in t990 to9.E p.r ce in 2004. Sinilrly, tr she ofndctadh. ioporb ofm.nb.rmutri6 4 a group i! their rotal n rch&dbe iblorr! &on notr{il dcv.lopjng@e|'6 iDc@$d tDn 24 p€rcol in 1990 10 47 pct@r in 2004.

Thc ah&. of conc.ssional flows (ofiici.l d.v.lo!h6r sistane e.t ol6ci.laid) in lot l rcr @urcc tlos to ncmb6 @uEi6 deli&d aod o !rda.

of 88 p.. ccni in t990 to 59 lcent innenbd @unb6 rcc€ivcd conc€sional

AfelaislAr, Bmgktesb, Egypr, Iraq,

2004. In paniculd, in 2004, olly 9aows abov. US$ I billion tmcryMozMbique, Pahstaa tal6ti&,

Itr t€Im oflDl, the following sdd medjb€r @uhies recc,.(r morc iheUS$ I billion of FDI €ch h 2004i Azeibriju, EgJFt, Kaztlsla4 Liby4Paki$.., Sudd, dd Tir*.y,

Tot l net ind.inA of IDB C,oup, up to lbe cnd of 1426Il, Moulcd ro US$1.4 billion. Of this figuF, US$435 diltion w.r. lpprevcrr for rbe Mulimcomuftties in m!-tDB ndb., courri6. the conpositiod of tolat nctftucilg of IDB GDup e4 d 6ltows: Trutc fin&ciog op@rions ep6ent.{t59 p€r @!q ordirary iituing opcnrioG 40 p.r ccft (mainly thrcugh t@ileasrg, and im1lltnent sle), wbilc special dsisLnce opdrioB ac@ui.d for

The Wofld Br*,s Dev€ropment I ctioB (WDI). A€i8rcgate data for IDB @ cirhd rohls d wcighted rvd86,. No aeigEgaie v.lu6 e calcutar€d if Di$ine dala aftour rir 6d!

lbe I thnd ofthc number of obsNatioc in a 8iv€n yru.. ,{€gcgates of ddos e calcltaled d weigbtcd av@g6 of tLe 6tid

aing Ae wlue of rbc ddodinaro G w€i8ht. Mosr onh 1h€ av.6g.indicoied for IDB is w€i8ht d according ro rie relative she of thccouh4 o grcup rotal for rhat indieroi

t AggEgate 8ro*1n 6t* @ calcutat€d Bi!8 cxpondrilt trad fiu.tiorThc rcaulring growt raies Efl*l ue&ts lrile nol Mduty iniEncedby.:ccptioul vah4. Exept wh@ spaificaty @rcd grcyrh d6 ofvaiu4 e @mpdcd non co!3ra!l pri@ s.rics.

CHAPTER-TO

CONCLUSION

t |[is c@luding clzptc., I frud rh.t Srudi-Ildo Et.tioE, @mpdcd wibSaudi-lok rclations, do* not Mlch in th. *olMic sp€cr, b4ase elmdtso{.@noDic relatioG w@ weight d boE ritb Iidid sj& rhd pa}isLa d!€to tbrEc llalm: invBtmdt @!€stio4 ad trad. dcvclopn trt Ir h !@cL&ly rhal Saudi bwin6 scror havc atrorg rui ed thi.t mrc r.liabt. i!b*in.$ dealilg with Indi@ as compared to pat isrartu bldn snd.S.condly; lh. potitical sr$ility in l!di! is noc tbm b pakbran. Ttirdlyi hdiaba . wiery of .@lElilirc ptuducb ar lte@blc pri6 itd p,lisLtri

ArbMdublla\ onc of ny eoals of this s@h crudy m &mptishc4 wn@

in corcluion I sugg6tcd rtr. PatbLnj bsine ed rrdc @m|Niry ro buildup c@pfrtioo b.twe! rh. two coutrica lbmgh D.di. plmirg s a brgct tobe for !p!.oacb by cbo€ine a pronincnl n€di. peBor fron Saudi Anbia. T!€yh,d chosilg ILe cditor llc tlam I giv. to llcn &otn dglist Ncsprpd,Ambn ws. Neventd6s, t c![cd m &d lold ioc abour lhe ilvirnios h.r6civcd with a cornplctc progEDme mde for bjs visit to differ€ar scclor i!PakHaq srartine ftom nrnufacreE fom to boug.tul plac6 in pakisi'r fd

I would alio suggcat thlr Pa,kisr.ni indsEialist ed aericuhralilrs should

'trhoduc€ then p.oducts rggrsively h ordd i,o comper€ wili ihe globel

comp.titoB in rhc S{udi D'*.r

Sardi Arabi. dd Pal6trn had rradiliomlly €njoy€d close brethqly ri€s adboth the ourtics bad u lbidile inreicsr h @!b otber,s wity ed stabilityenn convcrg@ ofpositioB on D6t of rj. rcgioD.l dd iltermtiout ise

Th. qim rehrioB b.rw@ th. r*o go@.nrs ard pople of rhc t*ocouEi€s prcvid a good bais for tutrhd dbdcilg c@onic @p@tion edbilatcBltade. Saudi AFbia dd Pakistrn bave politicat, socidl lld economic

rclations, Tte Ki!8don ba ber rh. tdg6t domr ro pakbbD od al$pmvidce eat labou Mket eho aE scnding hug. raninaB for &c coulry.P&btanis mtiture th. thi.d l.rg.st .xpdtri.r. worklorce in 1n€ King.toe,behind ihe Indi@ dd Egyptitu. Ofthe 4.7 nillion cxpaaiat€ civilie workeE

i! Saldi AFbia 778,600 e takislanic.

And nucl@ tcst *.nario, vh€! Cov.mn6r of pakista! w6 s.kilg mtu10 Bisc fo.eiSn r.setu s Saudi AEbia helped patisrar by prcviding $600nilliotr inlcrcst ftcc loe. It na abo dr.oded Oil F&ilig (soD ro pa*isra,'

rnq Mly 1998, ro hcb rakisla! ddt d.frutt thMr. p.tista sughr Sludihclp to meet Ihe ilt mati@al hadc Equirtudts ed Ssurli Aabia .g@d toprevid. oil on tle&rcd paFfrrs fd rwo y4. Th. Kingdom hs ofl@dn€.ting rhe Equirchcnt of palist r rErker f@ pcrcchcmi.al, codc oiLEfn€d lEbole@ prcducb, $lphu, iM dd wid. mgc oforld predu.r'

ftldi pnvab inv*to6 bav€ are shom irlmt ir s.ning up tu oil Efin€ryad pow.. pliDts. saudi Arabia ed plkbt D hlvc drabtislcd 26 jointvolue. Saldi bueins p@!l€ bave qpBed th.ir stishctio on lhedecision of the Palhtdi govtuor io *t np spccial comfti?n cou{t! in rhe

@utry to de.l with ey @mocial disputo b€twca the bBiness p6pte of

Princc Waleed, on. o{ rhe nchst ncn in th€ woild, a global invesror mdphiloduopbt hs pltu d to i4cst in rwo loLls itr Lahore ud hldabadWErcas I tMbc of Saldi iN6tors rc t(d r,o srrd joidr Bturls eillPakktdni coopdi.s, Saudi invesroc qn avail oppotnnitis by inv.sting ioql €s6tc, lele@tr\ louis4 ba*in& ae.i@lrft and sdi@s sccror in

A mli-bi]lim dollar Sedi hvdlncnt ercup-Al Bddara llt.miioDd Croup(BlG) is s.tting up o opeBtioml unir in ?akistan with s aim to exploebuines dd Flde pGsibiliri* in hid-yieldins deas. Th€ BIc k intercsted infi€lds lite fmce, tcl@4 infomtior tccbnology, agri.urtw,n'@Lct't i!9, s*icq, i.Aasfrciuc, rouis ed sdirl selos on . targdscalc. Th. BIC is mc of In. Lrgel buins @ngtotmrcs in lllc Kingdom ofSaudi Anbia, fo6d€d by P.i!.cs Al-Bmdlri Bi Abdll Aziz in 1980.

To boosi €corcmic relatio4 lrinc Minisid Sha*ar Aziz vilired Saldi Ambiain Febnury 2005, Prcsid@r p€ry@ Musb@f visited Saudi AEbia in Ju.2005. Kilg Abdulla! of Sfldi AEbi! visit d psLi$a! in F.bnury 20{6.Duiog rh€s. vi3it! thc Ladds dis.uscd .ll esp@tj includilg biht n! Fgio&led ini.ioational hsu.s. Both sidd exp€wd rh€il det dination to itrth€rstrmedEn the .xistitrg Sandi-Pal &iendly dd brorherly rlatioB in an sph@s.Bol! couEie also sig!.d 6v. &@r& ilcluding fou la@IMts dd on6MoU to stimuldc mp@ri@ in diffcEnr 6etd!

Fr€qudt codultarioB b€twe€n i!. lop l€d6 dd thci. vi3its ro @ch orLdbcoutrtry rcfl€ct.d, rhe high level of Flfical €omihlois ed mimiry ofvi€ws whicb will nor onty strdgthd ihc bil.tent ElarioB bul also @ble rhe

led€B to td.. ..w iniiativB for Goturion of ttc pal6ti!! is., c@.diia,Lcffora iI Uc fl8br agaist tc@riM ud bring bEm@y to r[. MBlin wGld

I 6rDry bcliev€ dd fto@end evolvidg a t6g,tenn Dehdbo in ordd bd.al in a systdatic trDmd with ihc hurdt.s, Inp@ving thc bsircs6rmnh@t ad to enldce rbc volMc of Fade b€twdn 0t two @uti6, itwodd b. rea!ry io prcmG rhc @noDic inremcti@ ad p..!le to p@ptc

I have tti.d to a$wer lh€ tollowing qucaliotrs tbrolg! ny stuoy:

l. WLI e the min hwrtld in Saudi-pa& @Domic r€tationship?

How car O!!. hurdld b€ nnovcd?

Wh.t ie tic iripod ofglobtir.tio! d S.udi-p.l Etitio$bip?Ttc odSing politic.l cbrlLdg.s @io .d by tbc Mul|n wodd u!aft6i!8 Slldi Anbi.'3 Beosmoic r.htiolr witb prti!ro

P@plcofPltirtrn b.rc {.ci.l tov., !!5per.!d.fi.ctio fo.ln cur.di& oft[c t6 Iloly M6q!.., KilS Abdultd Bin Abdd lriz. Ova @0,000

Prtiltali. vilit Srudi Aribi! for p.rbiollcc of tbii .nd UDd .vqy ,@.PiLlt n .!d Saldi Anbi! oupport acb otb6 .!d r! !!6b.(3 of dr.Oryuiati@ of Illrnic CoEri.3 (OIC) od eortilt fd lrllstbdiog r!.@urc of Muslim U|!m!" Bor! rlc couri€ h!rc coEptcb bllMy i!|lluilg rhc g.opolirical poblcd! id.n!!ioo.l fonDr.

Srrdi Atrbi! rld Prlin d bwc bccn al ilc forltmt of iottn ddrl qrr

$drn EliSiot$ qr@iso .!d r.doris Th. S.rrdi tarbltiD @ddca&dodle r cll$c wDict i! rgiDn ttc r.acbilg! of our pacc-rovirg di8ioo"Bolh lhc couotics bclicv! rtat btrn is a Etigior of p€{c. ud [rrmny. Irfdbi& vioLec. Ir i! lgrii$ dt a48 rbt briry .ny h.m ro u. tEoccot

D.opl.. I pna.hcs rolailcc, dmut a.coEsodrtior md caqislalca

Guid.d by thesc klrEic prirciplcs S.udi Arlbi! r.nri$ co@incd iocliniD.L tenoris. TL KiDgdan hr! dpB!.d iB fidl ranlllB @ coopcrrl.wit! .ll iotdi.lioD.l .tr$B io cdrb.t tdMis Ir b.lia6 rbrt ir sould t .&!.pdpctnoB of rcno. dim.3, cb!!. rhrn rld t*c Lg.l o-r{€ .griBt dl.Dwiihid ttc p@.pr! of Lllei. Stailb .!d KiigdoD'! irrdtrrtiout edrcgio!.l oblig.li@ a w.U $ bihritd .e<r&

h thi! r.g.rd Sddi Anbi! ud prtirbn tu .to joi .frois io .oDbatt rorire in dEir qnurriq ,! FU s Fllsuiig dioiod, i! O. r.gios byD.tilg | @tvdk @ sioing @npl.t ilfo@rio! $out ttc rmris!or$nizaton4 rh.ir frnlcial rcloeB, *ho is spplyilg aB io l!@ ed

2.

J.

who is giviaS bailio8 to than, Wi0bur rbis nawo* lemns @ @r b.

Saudi AEbia has alrady rak@ a nmb.r of Mjor ilitiativH ro fiebr lbjro@e. Tbe initi4iv6 includc adninisrlrive, 6n@ial a t othq nslG1o conlain, @db.r ard ddiaic rhis phcaondon. In .dditioa thc KingdoEb,3 rle inrrDduced refom in lhc .duc.rioBt dd @lonic 6€l& incoDtuity with its pNiri@ in wa. on r.tu.

As we dl know regio@l md glob.l €conomic situarion is faxr chdgingtowd& gred&r inicgdlion rheugh incrcdc in nad€ voluq rcdudior inradlB, PTAS (Prcfe@lial Tndc Agrc€n6rts), FTAS (F@ Tnde AgEndb),MFN (Mosr FavoNd Natior) srab!, .uly hecat a|msdBr& slobalisd@(that n yer L bc senled tbbugh W.TO), Forcigtr DnEt hvBhdt (FDr) dd so

on. Man€ts h.ve b@mc roE @npcritiv. dd EiioN harc oplEd to go forgMter e@obic c@pcratioq Saudi Anbh ed poljlran e atso afi@bd by

In ny t€s.@h work it $i! loricd rhal lakhtan ba u inBtor Aiodly€nviremt wnerc everybody h he ro invdt, s thft is m hindrb€ ininvcstitrg and witL&awing ihc invBbrcnr dout from the couirr. The v6tinveetn nt pN!@ts qisl i! telccomuicatioq consretiou, @gin@i!e.food pru6sing, perr@beniols, nining ed mmy otha seloB in pakistan.

On the othq ned, bu€aucnric systcm in S.udi Afrbi! be! ben refm€<t ddpmvi<ts ged oppdruiri.s to pakisraii invebB &oe which rncy @ b@fir

PabstrD is providing cdlerio.al facilirid to Saudi studcnrs in ncdkinc &dersi@ilg tbat o'!d lbo b. .xicrdcd io lnlmtion Tebnologf, bEilB,l8.ioltEe, foBtry and N@u. cottdriod. pfi3t& tu rts qrdd lainio€ in

1t€ field5 of Tledpotic dd dilglostic sdic6 ed aiso irain d@t6, trueqtEfuedi6 in lhe 6.td of NcDrosugc.y, Csrdioveutar surgery sd redilr.ics.

Tte positivc ildi@roB dd stid bs. of rhc Sludi @&my wiih US t 14?

billion cDP &d 12,4 p.rc.nt gro*h Erc d cu.red pri@ tdet &d 4,2 pdc@ron co6Lnt !ric6 ovd 2005 ttg@s previdc a solid gromd for ?fisr.niilvcstoB to.st Uishjoi v@tufts in SaudiAhlid The Kingdon is Drl€d 38in term ofatF.ctivo6s for irv€srm.ri ctjh!t., olt of 155 @mEi€q h.ving a

surpl8 orUS $ 121 biuio! iD rhc bsl&cc of rFd. proyi{rs b.igh oppomrnjc!for Pakisldi invesrors for settiog joinr y.nn{ca in Saudi AftDta,

Bolb lle cmtris hlve ldg hhrory of tt!.tc rll.tios but orc bal@o of dnde

betwd Saudi Ahbiadd patisra! ha always rcmined ir favoE of SaurrAfrbia wii! a total vol@c of US$ 3,323.4 milio!, including US$ 329,3

mjllioD qpdrs ft@ labtan which did nor Eflcct the ral IDtcntial atrd

Pa&istar should Dte 6?€cial efrotu to h!v. N noc pcirve sh@ i! trarte.

lr *a obsded rhal irdfods fron Saudi &!bia ed cxpo.ts to saudi Arebi.c@sist o.ly of 4 to 5 it€m (s.c tabtc-B and C) for the t{!t l@y ddds_ Forisnnce, Pakjsta! exports ricc, sp€ci.lly B4mti, sel€ctive r€xtile ire6,vegerables dd auib, footv@, coton ,rm ad tenis. The ibport lisr i!confined b peboltu ed p.tiolem Foducrs, ch€mic.ls, ptatics ireG,fcnilih$ ed l6th{ products (rablc.B hd C Amex_7).

In this rcBrd both taLisid ud Saudi ADbi. rad ro riq rarif ed noFtadll bMim, fr.ilitatc prem$on of bilrreFl tade thrcugn incr.ls.dbl@ctioA ircludinS n!q!d qchsg. ofbldns dclcgatioN, tib.nlizatio.of buir6 vis r%imq dd raniciparion io Fadc extibitids. Thc snudigolffidt m ale [.lp ro .@cl.Er rhc pres of pak_ccc regotiatiorufo. dly finalizri@ of rh. Frcc T6dc Ag€ltMr (FTA).

Thc 6g18 givd in t btcA, Adq,7 shov rhrt dudng rt ksr24,td,1982,83 to 2005-06, lh€ balee of Fad. h.s &@incd in favou of Saudi Aribia.Arthough PakisLDi qpois ao Saudi AEbia in Ms€d n@ pRs j.2 bilion toPRs 19.7 billion indicalDg an ircHsc of 5t4 percmt blt duilg th€ tuepdiod imports ako inc!@.d jlom pp.s 9.1 billion to prb l?9.3 tiliond.picting m €xolbilad incrcas of 1,796 pcrcdr.

This trad of trade d€@ds thlt a lot of efrons be mad€ ro boldc. trade

r€lation between tbe two couties. Thc .tcMd of patisrani products, tile bed

snets, iowcls, t!+auliB! tcnts, emdls clc. is vcry high md wii! a unl€

.lion of aggcsivc nlrkctinS Pakislali dportcrs ce gnb big sh@ of iteSaudi @t€r But ir is to b. noi.d rt8t Patbtrli cxportcE should bate a lmgtem stdegy b @mperc with tndian goo<h, Palisld should dlorr qutitygoods at @Dleiitivc pri6.

Saudi Anlia a wcl s ]akisr.r hs at6dy 3Ericd a n w @ of aovclmdted private sedor policy plrmi!& to cncoMgc b!si[6s md ind!$ial wror

T!@ is cenainly o urgdr !.cd io ov.rco6e rhe knoM .!d u,knoMhudl6, lile bck of info@arior\ r.rifi bsi6, vis probtm dd pdticipation

of Saudi buine$Eo in irrd€ exhibirions held in palistr!. I fimly b€li*. rh.tine e@nomic mnpo!6t of Saudi-P.t rclario hjp cd gmw shongd ,s a

qnlt of pNling conductiv. policiA ed @novine larif be.E,

In c@cl6ior wc cd say thai Paldstaak ltrilegic loqrion ed inv€snn€nt

Ai€ndly policies pmvidc trcnddou! pot ntial for srcaler .@oDicmopeFtion b€twe.n the two courri.!. Sludi AEbi. cb rrle the .d@icrclari@hi! to biEhd l€v.ls by cnneci.g @opeErion ia rLe 6eus ofeduerior! loubn d.l joint votuE!, whicb wolld b. mutudly b.neficial

laGlating &€e wdderftl iies ifto vibFnt md dtrdic eonooic

h is vorth me ioaing hft 6ar Psk-S.udi Joint E oDonic Connisid ij a

eftl t'drercrt for d iD dcprh r.view of tbe existing el@ic rcLdoship.tuI identid@tioD ofnry o4ortuniti6 in vdi@ fi.I& for nub.Iy b.n tcialcmp{ation bctwa Saudi Anbia ard P.tisl3r rt tas drEdy hcld cighr

neetirgs. This co@isior stould b. md€ hN acrive to eddce rade &d4@mic ElatioN, It ce h.lp to rcnove hudt6 $ch s iladequt.infomatiotr, p€en to p6o. @ntacq M8ing sdind tud wdkhops tudsinSlc coqty exhbiLions. The mo cffecnve $ay ro irqede emnomic

rclatioc b€rween l!€ @Dt ica world bc aingle couhy €xhibition in which

oedia people shodd bc includ.d who wolld Eire adiclB &d prcnotc rhc

cauc in €trerive trfud. P@otirg louism !.tivirie wor d b. eorhd lool

vhich etnd teb &quirc ktlowlcda. .bour 6ch odd.

Howdd, I f@l a lor D4ds lo b. &rc for pbmdog ti6 betwm Saudi Acbiaud ?akis$n. 'tt@ n ftcd for pafiaihip fd coletively @gin8 &.lhJels facing rh. Mulin wo.ld in rhe prcsc cmtuy. Sirce ii! im.ption,lakist& ba givfl paniculd imponecc to its ri.s with ihe MuliE wdtd.Iom thc drys of Saudi King laisalbin Abdut Azjz, the saudj-pat Aim&hjpha greM by laps md bouds. On. still rcmmber l!1. 1974 Laloe lll@it ofllc OIC, &d how it prcvcd to bc i.shurn al, with trkisra! th.n lcd byPrcmier Zulik r Ali Bh!t!o, in gomiing a spirit of Mulih sotidariry.

I hoF t[ the bistorical, eiqE .nd filr.dt elatic b.rw@ palisran odS$di Anbia win @ ine io gow ed srtngrl.! i! tunEe I lny tlal bofittc @utri6 fltuisb md ptuGFr wifi rhc pdeeg. of tire md joilrty pby rclclo wite Mulim UD@n in th. chdginS Stobat sltdio, wbich b l}e @h

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33 lrv6br'6 Inlomlron cud., fuitutM rse(@r prcfiI.), Board ofInvehol C.vtuDl of p.ksbn. Abtut Avc. Sebr c_tl bknab.4

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87 lNctur! InfoMon C{t., tnturkr4 {Sa-lor pofitc), Aod ofIrvathl Civ.lrmnr of p!l!b. Abtul Av.. scior C_5it tllldb.q

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l0l. Thc Sr e@ s y.rb@tq U. potitiql, cuiB lrd E domics ofrh. World by Br'r) Tum(, 2OOt.

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105. LNCTAD Iledboot of Srlti3ti€ l99O ro 2003,

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lll_

ll2.

Do|! ed inlomdon o. rh. b{r tud EgutlroM oa lh. Fumlnhvtur Act &d SACIA cs b. l@!.d dDm .lE w.bsic at:ft tlp://lw.eri!.06v.!s.

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109.

I 13- M.jli. w.6 .: hflpr/www.rierd.u

ll4. !w&6i.ftp*&q Mc r!l-r D.wr.p@! R.aih4t@milt tul?/r9t

ll5. hn6r/r"s9.ei{ic@

I 16- htpt/'w,ern@vj.

ll7. Voiou *d.ic. of i hdidr rd drioul ilrftrris vc@ddbd rhins tn. lEtlh i! ddti6 b rt doE @riod

ll8. World l.nk veiou publio.ti@,

ll9. wald l!frroni@ F@id swiig Mtddro Sol, Afit4 A,n A

Srudl Arrbia: Land of trconomtc Opportuntdes

Sdudi AmbE s apprc&! fd rdi*D8 brls(.d d*dopmftt through pnhriation ijtoudcd upon buildtra .ficriv. Dubtiepnv,Lc !6mbps. bdc.4 tbc lfo'sdt621.? billion in Dow mqgitrg Fvirjatid opDoturc (,tcd e ault, qrEEd b6nrltl@ mlvi.8 vilhi. ib .@ony rtmlr iruEdi.lltx oppon d by ! trgd.dndter b€lkd of l@tiv. 6@dal ieati!6 rhar js e.ric'!8. viirh Frbt.@ dvaevaE 5lr.M3 i1 $.n p'eal l.vclli m@vd, dpl. fi@iit sollG lppdavaildble 10 rchi4c lhc aodk b.seicd.

Ha@, lh. objetivB ofrh€ @ulryt prjvcrtlliob strat.CJ, @ !o:- dlrcvc n.tioml emomic c+0.ity sd Blobal luterphe 66pcriliv. .bilit;aon8. pnv.tc Fbr bv6dndi;- dp..d dc inbrdt ofprod!.tivc &et r b.td bt pnv,rc cili4i. pDmr. irdjSoow DrErMl of domdic rnd foeigD *pibti. lp3ndc th. pmddiv. crp0b rD6 of rbe Mtjon.t wort f@, wbl.

sidullln€uly iDol@ina dploy|Mt oppoinsnie; md- Bliorlia govm@rrl exp.ndinB lo EnlE pubUc sclft budg.t burdd.

Foniling ir privatizltiotr inii ive!, Srudi Aslia EmiE @nnin d b a nE!u*et ccono witb no erictios oi opirat mv.Mr Mdjo, bsine olimL.Laptbl tul.L ud b clom bnv. !l:o

'@rty ba inptclMEd _ *lt! @rpoEch dd hv'n3 ben mE rhd cur in h.ll.

To f,.ili6rc for.isn i Bb4 th. $udj AFbia cddlr tnverftni adnonry(SAclA), a 'oDNtop F.dc dd irydrn.nt pbtutid qld, wa @rd in J@,

. Esbblkh th n ion's prival. s{lor ds ! fomst rorcd iD fo qine ecommic.kDdson, 6.r.by rcdu.ms rh. publrc s.cbr rcts b tho,c ot p.hcy-;oluns ed

I Afriv€ly pbmocrn-ouiry rvehdr opporrdriB &d dd.lop r!..4s.ydcrdei bl3 dd &6 bd!6: ud

. ReoIlW l poUci6 Md Eguhrory (heg6 dEigncd ro hctt* ed d,v6itmGuc ed t@rgtr bv6rmr. n!*in3 rh. @qEy 3 b4rn* cLmG @(

C.mMdrly, wh€re6 foFign to'.r patuss hrd previoEly bee. hmi(d lo onty 4aqoor e4liry 3hd.. full forsgn owlcuhiD of Srudi pDperg md hc.rlcd Dqeis wsencdond

'n aphl. 1000 orhd eignificmr ,nhst EfoT, includ,ng mlmggELr public do tErqmnct ud $.@tinid8 lbc *o*tn8! ot b;st!fu;pl1)B, N smhrl, dow lnd.My b 6fihd prcmoL 6e rr& hd fu tu tr.t

Mcp @kd hdcarm simut@outy Etmn sbnc 6 k[ o foslrd.t@hgB.N..o rh. oD5.r of te99 ud the ct* of fdqwq.2005, rh. saud del m{*;D!E4.rt by ov.r 520% in l88'.gaG vitu.. Inde4 its opiEtizirion ove, dre p6rh. v@s ha mr lhe doubled rBoil.xpon mmgs Mrbrn rh. h. o.riod.

Ddpnc siN shotuge of sld[d ldt lilor md a tinikd r@l poducrion dcDndrur.( rhc.Fldiv.ly lo$ d oI terfl, produc.n oit ,rd 3c. wben u.d ! k,prcducnon fterbbck!,.Ifod irj rnd,S.nour rdu$.q riS lictu! nur*n cohp.lrrv.

aonclllmily, r @r0trch6iv. phyrot Infiareuaur. bujldrng p6gm Eutr.d iDb. @Nru.td oflllE{f rbc-d rirpotu .nd s poB, *.rr. ctahorr. indulidpllnb,

'd@miolroN. d*[DrioG fEeslr{! b6p !k. md sch@ts thrcugtoullh. codry Ind..4 alErdv by @ midl930c. ovd tSoo b,ltion od b..n sp.nr durErtu.tuEl d.v.lopmdr 0Dr spamed (ro$ rh. urion

NATURAI, R'SOURCES

fd mE tld six d*rd6, oil hs fo4.d Saudj Ahbn'3 @nomc .od &jit@doptMr and will lik ly onrinuc io d,. 3o ttr ils fo6...htc @nonio i)t!Etypr.lly a..ouh8-for sbod t5!6 of amut Stobat producr.on &d bNbdcalyIiucturtng b.hrer XeLlsvo of tha' ot fie "Oref,stion of Oit hponrng Sbt6,rurE(,,qoo. tr@ 4h beb3 tnc prvlili4 tud in 8. y4.

l*Th.e T.f g -1" 6.' ^c

Kuwflri bordq 6mu8h rhc rur sbpry ede.vu rnorq@ oi x.krt.ib ru ( Mong4 li.ld36r i! rh. M d chawd, lqrdwr$'nnc Enpry Qdq iktf.F. r f,cr, rh. td86r lod-bs.d fiet4 wrh 6dMr.dr.drrnhgEsae orabo{ )0 d ion bmch, d d at-satsn,yrh is th. td8ej otflhoeo,r trdd s'in rserua or 6bor It brthon bhts. Nor only e ih6. fiet.ts amnsslb. nch6l.,rbey e.lb amrs d. cbapd b d.rctop bd pbduce rorlns [.{sdt highly @Ep.duv. D rlc gtob.l p.Nt.u ed pcrwbdi€l trw*rts.

PNBsine lo'ldi foMh lorrdr uturr 8!! ts6 5otu 22j lritLoo cubic t*!rb.ul 5% of rhc rorld s bat Saud, Anbir tirN6. k mov,Dg wirh d$prrch baptu& $.n lufrtiv. comerciol polentirlB.

aq9a!r!vsaldi Mdh0ol (Al-Ru0 Ctmic4 CEdc MeddolSaudi P*ocn nidal (SIDAD E$ylae, IndBt ill Elndol, Styrcn.,

Cau$c Sod!. E$,1@ Dichlorid.,M'IBE

Nlriopl M.lttuot (lbn Sp! l Chmidl Gnd. Mdtnd. MTBEsrud' Y&bu P@chmiel (Yi/TNPET) Etfiylaq Polydhytaq Etnytoc

Arubisn Pebochemcal lPETROj<lElv{yA) Etiyldc, Potcilyl@, Buron.-t,Propyl..c. Butldide. Bmc

Al.Jubrvl Pft ch.miol IKEMYA)Ear PcrrEhmcd (SrhRQ) LI-DPE, Ethvld. Cly@lNrrioDal Pldic obn Hltyo) vilyl chlqid. Monomd, polrai.t

saudi-Eur@u PeEoch.hrcat (rbo Z0hil MTBE, PolvEopyldcAl-Jlbayl Fertilih (SAMAD) Amonir, UF!, 2-Ethyt Hex!rcl

ftoP

Saudi Ar$is F.niua (S^fCO) Anmni6, Ure, Sulphlric Aci4

Ambie hdstial Fibd (rbn Rustd) Asdd6 (Xyla6 fud BM.),rui6.d Tacpblhdic Aci4 (P&)Poly6la Tdtilc ChiF, Tqrile, od

N.tio0.l cb.ncal ldrtud (Ih B!yd) Al)mni4 Gmul{ Uea, Pho$phr.

sludi Ibn ud Sl..l (HADBED) Slel R.bd, wi@ Coil, Slecl S.ctiors,

Notio$l Idurirl Csd (CAS)Itu HlryM Platc Podull ITAYF] Phslic Borrlr, W![ Covailgs,

Aniicirl tanld, 86r Bildi@Al-Jublyl Unir.d Pctr@hcmicir (JU?q Rnrldc, Poly.lhylcne, Elnyl.nc,

Clycol, Ol.fins, aid Poly Oetins

'n notioD's omirmm o higtcr .duaro, io cfutc . pool of hidy L,jD.dcitias c.pabl. of m&ginA a @mptq tudan @@Dy br ha pasmur@nsst its Dolicy Borh To lne o s, ir ts nor buift.ig!r mjoruivd;fts:

l. KhA Soud Uniydiry, fobded in l9t?t2. Kin8 AbdDl Aziz Univdit in Jeddah. fouded in 196?:3. King Faiel UlivcBity in llD!]mb, loud.d in I9?5i4. Kins Khd.d UDivdi.y in ,r-Ta it aound.d il t998:5. King F ld Univ.uiiy of Pctol@ od Minad R@u6 in D[.b@ foDdcd

m l96l ud givd qrvmity strn6 in I975:6. Itl4 Munannd 6id Saud Udv6iry in Riyad6, foud.d i. 1953 md .mrt d

uivdity lretos in 1974i7, Islanic Univ63ity in ll-Madinatr, founded in 196l; atul8. Um al-Qur Univedty h Matkih, fobd.d h l9?9

A! ! cds.qudcli inshtry ldvmcd d.ad d t m.d t dly in su.i div@fi.I& a thc ndhi.ituie $id6, .giculrud $idc6, .!l5 ad rc .r9li.dsrcncB, buira rdoinisr'al,or, cjvit ud iddBtrilt dgirdins, ddtilEy,.duarioq avionlmt l .tudi6, nsir. sienc6, mdioin€ .ftI ,Edic,t eid€,ndeorclogy, phmy, Md v.lqinary m.dicinc,

In all, dreR e 1420 $h6ts. 22 urvcuils ud a .8.s, 6l r@uonrl mhula616, ed toE bwdrty t6ffh hdpibls l@rd rcrc$ lh. @hby. Ttc syshis oFn io all cirias, DFviding qbc.tio. b@tq and hdt$ ldi6 nE of cb.rgc.

IBrnldmal irnar@n!. m corconimdy pD. idb plic.. Al . dutr, mrioMtccononjc plming is todry dftchd by rhe Supr@ F.ononi. Co@il. Eslrbtbhcdin Aug6r 1999, ill widc,@sir8, divctsc mmd.to inchd.ll. rmmtng @nonic Co$d ot Lr.b ihlr ensE Ed D.r c,'jr! jn@n bc'cg:. divG,l'og th. diioDrl mnonic h& ed rh6.b', pubtic Ed E€la. d.vclopi4 e attsdive, podllbb iN6l@nt wimtr@r;. dpodiry l!. pnvrG sr,or,r rcI. in etusiic dry.toplmt rtmugn rnc

pnvrtialion of D@hlats: md

. oqd4 ptuduriv. .nptor@t opponunirie ror S6udi citim.Li*dF. ro rbs. cnds. lherdio s lrnaDu[m ptM.. ippro\d b, !h. Supr.mcrmnomc LMcrr m *'ty Ju..2002, b.cme kE @ B fDts devetopnhr goats.

. oefninc oudhrp of cdb F,Bbrrl, b rh. Fivlc m,. F vdiaion ol Botfulrt ih.G in ,our s$ct @mpur6,. illowirA rb. prirl? lebr lo nsugc ud opm cqt.in pubt,c pojRBi. ctuehg pnvot capnd b 6rffi. *EnnSpubticpbJ.crs; ed. cr.itine a pmpnioB invGment dvibmdl vhdcin podDcriv. Dliv.ri4tion

Su@ srdi6 lo d,rc inchdei. @Nolidriing th. rcemd .td-Ejciry 6mpr!i6 inb tn..Saud llatsciiy

CohDtur''(SEC):. 46blsbnc lh. jod shck Saudr T.tqommobonr Compmy tsTc)i. cE nnS a iomr sbck utilibe €mpuy tor rhe rdeiit crti6 of ydbu ud ct-

. pDootng in.E !.d prive *ior prdclp{io ir lM.g.lMr d !.nn8 up IG Me ab6 a a Rrporl an. $. J.ddrh btmic 6(O$d nle€d Bll nsorb orlude o 2.mo Ubmft lh. north- south @mEun8,t.xr.njd_mihem ph@phoG mrutr8 o6.p4B ro

'l-Jubat vir Ho il. Bmydlh, tuy;dh.

rnd !l-D.lrrl]M: a $.lt s . 600 klomrq **h Egion lE tb' qU @merMalrrh. ol-Madbr\ J.ddrh ud yMbu ImDt.nMrne |hi! pbjded air qp.roidd orhq .ssidcd bmpotuld pDj4B wi ,quiE. prol4lcd t D.l biltm jDhvennfl 6pel.d !o op.. $ | 5 b'thon in bus. Mad prcja rvolvin8 ni(t.lnnc. phspMre!, bdux&, m.nsm8c. rirmun\ ma riuca dd cakrm c&bonlra.tl billion CCC-wide nil n.work 6 llso bder srrdv

C@Dn8 r no<lm hd6F,atz.d *rdy also invorB lb. urs6r d..d fd. modtut lsmDi@ion infrurutu Sauti Anh, B trow bla3.d hlh $. t .g6! mrrnpidly tdwiog ro.kd fr t tdmuMijon pDd@ sd sdr6 r o. M,rrdl.@r, notuB 'My opDotuid6 for .rps on of bolh iB wuld and *n.kscomurqnoN nctworks dd for prcvidins $rJDon scdicB anmd.nt io lhis

PDrnocEEtVlcAIJSaudi Anbio s p.lahmc.ls ud bsrc mtuk pr.duction s mnagcd by rh. "Sludradb,m larc daf|6 C.rp.6rjon (SABIC). IE op6.rio6 e olB&iz.d jDb rix

I Ra,i, CreaEak. ot.fm. oryg.nrr.! (ot@bots md .lhdr . qd @tudcs,phh&y buildin8 bloct! lor do*6r6m p.hch.miqls dd pl6h6 poduc.dmh M@ ae !s*i'ed wir! @d. o,l p,od(lbn. pnDcjpat dowr.Mesdy* inc]ud. dnytmc, @rhsor, ..rdnyl rdti&y rotyt .rn6" (MrBE,rm!'r]{e stJftc. b6he paruytde pyrotyc6 gMrD., indchrl .lllml

2. hknpdan Cie^iLab. chncot Inrhedre. ,rb.d, and hn@ olphs olofinsld B Dgrcd'cnB ror ruuteudng dom3r.h p.nebmiclts. princDat

F.dDfB e runG ed ri{dyta. dycot, pEifed tcEpnth.lrc &i4.l!yl* di-cbloridq 2-.rhtlm. b.xfuI, dr-oc.tl phrh.llL. @Buc rod!, dd vbyt chtqid.

t. PaIn|JiB S,atC is lbe so'tdr lolnh ldSrd prcdu@r of polyotctrj _poryeoryio. sd poltTapyloe - bo$ Eed 6 inpub h plslics Drc<tu.rlMur!.M. Prcduroo ffhldo boo hish otrd los dlsiry polymB.

a. Pyc ona Pofatu: loty.:h {ur.d in Grrit6), poryltyE. (u.d ir iNul&o4inde'll !r.L.sin8. md disp6lbt. cuttdy)i polymyt chbnd. evc) (u!€d irp'piq wir., clblc botiles' dd p6cl,p.gi dd crrnin, (u.d in rdi6iv6,rlbisB, surfe. codilgs, rnd @ldin! co,npou{rs B wU s , l[. tmlbtuofarFr. r.xrila, bodte ed or[a parlrinS, &d hoebotd ur.ortr.) pri0cip6tprcducr outpur! inclu& potyroto.. polyvinyt cblsd., poty.rhytm.d+b|nilltc rsrn, polyetu fibcB. ondm.teo.

s. FdjlteB: onc ofd. wdLc's ldS. prcduceBofEc*w.Us.bbidds.of Dilroecq phorpn&, s.d @dpould tcnilim_ pdftiprt pbdlct e 'lm;,u.4 pbdphli., lrd ruliEic &id.

6. M@&j rh. hrgdt Dfulf'.rrE of cl pFd@ s *cI s fam dtoF D rh.CrCC ed n ils dgrsd b otTrbmdl:Md F.du.ri@ hot.ti4e in B.btuP opd poducb m i@ bor fd @td rcUcd dal. GinI@Dr b;. *F rcds,rcUd corb, ed rlminm. SAttC is hr.m. dg,ged jn rh; p;du6on oiporypeprtm* ed polredrld€ in omrn! rd lhe Ncrhcrhd!.

crdtonq: rsntlsn d in t9?6 b dcvolop Sludi Afrbn', vst hyd&sboo6om6, SABIC i, onc of 6e *odd! llrgd pd)c!@icd ompoie botdrg i

c wcn a on. of rh. LreBr indut,at @np.D6 D l[.Middl. E$t It i! . 7o./cloe,t public.Fv.r. @m!€ry

Ia insury !rcdudd rctivitiB @ rcw mid our by .ighrcd lifilar.d6mpoid, mc! ofvbcn @ bcaEd in rh. .sh Fn alJ;br,t, ,noush Mo *baed in Yebu oD ft. R.d Ss md onc h.LD'l11]r@, SABIC F .tso;Dda inrhre ftgFnol jont venrlB b Babonw'rh br.l sprnl inv.fuo6 m iE b4ic rd6l'q mw oppoeblng $30 b, im. r6e ro'tmsl Mirr@r cor+uy i! b6l clpuhdiod _ ,nd bd.y ruls s lh. I td

'8s€l ryte[:Tr1k, \' t,!c6r potcrlyl.na &d 66 hts6. polrTFpyrturulTmly 8rod'y. tr & @mirnds r sidifd eortd ru*cl posld inFldEine 8ly@ls, mtheol, MIBE. &d t rtitia.Majorjoinl vdturd includ.: SADAF, . s0!5C06 joi,t vdtu. wid Sh.tr; yaNpETed KEMYA, both 50J07o joinl vcntus wtu rnm Mohil SHARe, a js.5oplojoid.vdllr wilh Mrlrubishr: and SAMAD, a so-sooa joinr v.ntu with Trsd

So@ 13 billion i. n* iN6tud ovd lh. nai h,tfdd.r. @ ehcduLd b dd 20dllim dric roE of Ftetrmdl produc.ion orscity. ru,n8 l!. djon\ Mulrod bom rt5 p|!qt {5 mitl@ mhc ioN to D6ty 70 nilid by 2OIO. b Jw,2005, il @uc.d thor it wnl floar t6 bilio! 3he to urdwite c@irvnpaBir: &d in July, 1005. s.udi Affi ,nd Smomo lmhFd ple; ror;rujor p.lrehcmical flcility al Rabigh.

MININCTb. D.pu{, Mdsr} tor Mind,l Red6 {D\{IIR) h4 iddtified I.2713,8 ofp@oB mlii!" primtly Bold ?!d rtvs, Md r,l7l lnd of tr(l|rfriod m.blaluch G coppe. zinc, nicl(d, iro( lad, h.qitc cbrn , wi@ ud d8Eite OideF_sna,64 snow sigdfoer c@ercial pbnis.. Of 6do i, opdtion in 2m3,sNdi Aabia produc.d 228,194 oucd olgold, 3OO,OOO oucer or 3irve,, 900 tod of6ppq. md 3.0m bB of zhc tn alt, ir is €tjrur€d b pdrs 20 nithon b6 ot gotdN S.udi ADtut h.rd mb*j d.D.$E. h tu . nctudc babnir, dotomrqir&D.r, ghe( Smr., SEpbri gJp.u\ Unfuq drbL. pbd!p[r6, r* wot,

c.olo8icd shrdics brvo lik wi€ irdic.t d a snitojar pG.nce ofphosphah deDdil!poldti.lly dploit bG ld th. ndr r oo y@ st looati@ ,.qui.ins inv6r@l!;f upio 12.5 billim b dracr e 6rimrcd 6@ thm l@ hillio. aoD of ,n@hri. ek inal hLdd .R or E nonbe€r @ - wdr Mud yj.l& p,ojetcd ir tr nurrd

studie tuo bwe dal.d ovd 240 nilljon oons ofbauit. oft berwen sl-Qsin mdlnl'il. Sinc. April 2003, fsibit'ry sd nerditrg rEdG have ben ongoilg ar at-@M orNrc pmspet. In€bbt: thn m qgcrd b ac..d ll.2 bjltionidlldila ! 1.4 nllion ro. slmin. Efinar rnd ! 620,000 idE .lninu smlla4h,bMn8. liL cyct. of .?5 Fm. Amrfid @gd.d d.r.top'@, ,ir. is zeshd,srr 2 7 mllion ron mr8narr. deposrts d u mu y )i.ld 2O,OO0 roD, of h8b.groc .r4cMd ro3n.ik.

Inv6toB in the ninir8 *tor 6joy cxctuirc qplddoa rishts wjdin rhcirdcdroB ud @ obuir *t6v. mim.s md d{loEDoD t.e Th. *pro.ariod16. is valid ro. 6v. y.6, meeabt. fo! s addrho..t fou ye4: wh ; nimg166 lst lor 30 yan, iqcwable tor 20 ycm. To drtc, l,loo ptusp.cb hav. be;lice6cd, prcsendy gmddins 93 bittion in pd.r.

POWER CENERAAIONCusto_a.rjJhe Mini$y of Elecriciry &d Wslq s 25 ycu olelritic.iio. pto. ca sfoJ-US $l u bnlion in clpi(al invellncnt |o inorece btal ffiuol oopcciiy filn aboDr3q000 M,w lo n@ lhm 70,0m Mw by yd 2020, rc{uinns mili;un mMrDv6tmhb o ds or 12 bilid FurE Pllsteriv. Mk t d.@d k .qu ymnlllMLl lD 1999, sft 309d of th. S.udr popula hlrt !6 ro .tdiciry Ay201l. th. nanoml "Sddr ehchcity Coeo'ition- (SEC) hs pla$ b p@(;u oi

To ti* mds, in Nov.nbq,2ml, S.udi A$i.h SupM. Eonomic CoucilcEt d D Elericity S.dic Rcsularory Audorfty" s pd of . 6nriNjD8 @€ to6t:]llmdE ur{l clrlctw 6. powd grid _ imludirg hbhdling rh. RudioGor powe 8mmto4 rrsbision, dd dbr.ihnior _ wirh ttc ultiftnc lim oa

Ind6Ly lolllc dper dd.liMtid ro ttmid a mj6, ildwtry in sudi Ahbi, torseneEnoN !o @me - *ih ih. sovmnmr ptMins ro blitd 16 d..atimriotr

f!.'l't6 edh I la birlld -oq tb. n.rr 17 ,qF pGDg , @bbilcd 6F.iry ot

pf d!y. rh6c R ediE bld or 6;,,.y, !MErry bm4 pr.dicr rhlr url4 'w w{6 dejtD.rd pojd G iEpt ffir4s!r.r rhorils6 will ech mr. tho fou niuim cuhic ,lffi pd dr, by il2o

wit d."Salm uau C.nv6ion CoEDdlioD. {SWCC) now *rituring thrr rtotunon w'll n.{d lo sD.rd $s3 b llion on wlror pel* lhroueh 2020, r nN SWCC

s.",!"1*, {.:d.- 9 m4 b!.roninsll*rtctty ud wrb" hot& €Dodibiliry td ddctopilg rh. 6uby,, ftu ;.cr|elle..Atugy. rl E 6* d.v.topi4 o "dionrl,rt r plo".o lfd f.cigDN6ioR.' Db rh. sero.. Thc Mr!f, *p*r rh. pt& to bc in fi!.1 aom by 2ooi.r R curog. B hpGrng s u ordd !o D.c qpEr.d ir.'en.r gbfih rq w!r.., rb.rq gw.lmr w'x bna. b hv6t mE tbD 160 bjlion d l] bi jon F murAE ryrmc mlrafunIrt dd.ropRnr ovs rh. Bl lvary y6.Th. Silh. w@ cdvs&d Corponron (SWCC) - *hicr ovm.6! ,!. nrtion!phnqpd hufu consurprive wrr.r sourc, "derljmlon. _ fo€sl! rtd.r.Mdror d4arrmled qaro wi ns by 60 p.r cdt to ro.7 m ion 4brc rur.,, pd dry byzu'ui .ad oh M avrace per c.p'6 cmmpnon of.100 Lh a d.y. To nd rhBl9d, rlw'll build 20 dsolimrion phn$ od r@. rh. piFU!. n.Mo,t b 4,OOOkilonFld.r.Il4 4 D oo robt invdturP|tsr qDacity i' 27 d6ti!.rrM ptdl! - 2.1o rt R.d Sa tud 4 on rh. Anbn@n - hb r ro{rt d.ny d6ign €p.city otM mjlio c!bi. nl.6. SWCC FEj*6l!. @t of rR ilv6bEnr

'qurld to lR. &.rtiD,t d w,c {hn&d by 2tDO .r t5}brllto wb.@ lh. SupER E@mdc Comit qnDare U. iNsie.r

rcqun.lMl. wildh tbd p€riod !o b. t8O biltion n lins rhc p.rticipltid offorcign involion both @ ath.criv. ud a n.B!.y oprid. CU@ni inv6irdr! inonSoing Drcjetl rold $7-3 billid,

TELECOMMUNICATTONSwith fou @jft vsAT providd, hd 22 Inrlmd S*i@ prcvid.$, Intc6.t !.wicca w.ll q hish sp*ddigital $b6ribq line (DSr!) e Frdily akitoblc !o povid.ldr@ !o u eritrred mE liu two niltioi 166, Mobir. pbdc rdta p.latldoDiB cl|fudy elimtcd 0t !no!r 32% lld Inrh.l ot 15% of rh. @dlouiry mpl. lw ro' frlr srcsrh. Cm1l:Mdy, rr. Md61 Fe.l @mpemtdagm*hgdreof rya lJ% Fr yd dd iE mbik ph@c pqEtuon i!pEler.d ro iDc|le ro @Eo by 20 t{, ldrDs ovd 20 hruob tuh6qibcE.

CuloDd: In Mn, 2001, l!. SuDffi E onooic c.wit rdqicd sl.l4omuic.tim p.licy cfi.criv.ly d.E8ddi.s sL!. oonopoly of ,n,i slo,.ru3uidr b

'q i @nd m,or kt@n o4r@r. Etihad EttSotat ws gtuld a 25yor I'ctu. to com6e CSV opdrion, in 2005 opffiilg d $. oOO Mhz Md

1300 Mh2 bands. h s rd l.m sp.ndn3 fo, ,ntsdl.fu. atoo. i, dpei.d to*..d 54 b' llion and 'b

tPO o(I6ng D Ocbbd. 2oo. ,E&ld t I t.6 bitho;. A $,rdusM Mr b d$ n tb. procBr of bcing ottd€d b€for rh. ctor. of 2@5. AnnullsM ldd Roc ft pmjerd ro rDpFrch t3 bition by 2007.

E{udly tedi3ins Mr?t OrDo6uirj.! @ dotvrng wjl[h Somrrl !!dP@hd drde ruh a Ar.mo th4 34k !l!la-of_$ard t4b.oro8i€ n tRorl3lrd opdrirs rr*m b fa.iljkr. i .gltjon ot @mujsion Dl@6 ifuburB In6 N.Mdt tu$.mL .h6 wchouing, ed scb ho;he !Fi6 eud orh6 opFhdnia dicr silnin d. mc |'tditio,,t@'ll,|u6tid {dy!s, d6let\ @nml, ud hjnhs 3ubsbE. witb lh. ri& j!

popuLrity or ilIomti@ kt@logie, SNdj Anbn hu .tjo bso. 6c of d.E8r@ ! lw lunrik rutlB fd ncwdkng .qutMr Md ..6Dg 6Dpur.r

FTNANCIAL SERVTCESTh. Srurli b.dins ryrbr Emim on. of t[. dlng6l &d rE r Do6h!t. wirhin rb.Mr.'...( ajoyinS @mbhd lhd u.a dclcd.d tr70 b,U,oD iD 200{, 2@/r b,8ndrbs h 2003 - wh.!4 b&I p6fir! 8'R by t3.92 bilio[ ! 59.?% ircl* ;6Jool:.wi'h gombiicd c.piLt &d t*@ @v ac..djra tI2.5 b loq.olcthq hishliquidiry ed &ptc P|!6s, rh. br*iis €td bs dlriv.d wjlh lbc dr of l[.emd/ i! lhc 2003-2004 diotl

Crmdy d@ e I I b.dc wirh ffi rhd l:OO bren6 oFerio8 wirhin $udiMb'r ' llr c s.!di mjdfty-w&d b.!tr ud @ ! , CCC b€Dt t[. OutfIlrstudt! _of

trhnh. SiE lh. trc |97ot, th. tuinM .Io*.bt focigncquit i! r Studi 6sL h! b€ 4U./.

Fou orLa Gcc-bs.d h.trb, Emi6r6 Brr rnbtlion t (UAE), Niriod smr oaBlbni4 Nxiond B.'t of Kuw.i( &d Mt)d Br,t hold ti@ !o oFlE in rlcKilgdon ..d e in l!. p|!6 of opding t!.n ddi I! 2003, ln. Srdi An6idMoEldy Ag@cy (SAMA) .ts gtu&d D.u!.h€ B&r l[. 6d focigtr (@4CC)h{rkirg lic.@ in 20 yaB. Ir 2004, HSBC, pArBAS. rd ,p M6g; ft*!,;

Tr!. S.!di 5to.t tu*.! wilt mE |!d t2O joid rio.t @p.dq i, .r,o rtMihat qion'! hrgdr in .b.otur. r.m - mE r[[ trlbL r!. sizq of rh@op.6lng i! Kuuir ed E6,pt lnd..d iE {pirdiarion @dlur.. 52% of 0F ioLlwirhi!.[ Gu|l@uFy r!rl(!tr, Vituad !r rbour 1306! hilio, j!! crgirilizdim-r&GDP dtio 1Lr& { l2lyr fo esld ths |16. of rE€t BG .i.Elop.d .qliiy

D.trpuflrinS Etut bt. tE6r Fosrh, ir! v.l@ !r in d@ of 2Oo4 ws 52el6gm0.t thm i wa th. oM of 1999. In 2004, I Egisrdld . bugc 9t% 8.n\rouowirs. rmile ?6.2 % d.ta. r.20ol.

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. !!tablbhi!8 l!. rd@muicdim r.gut&r,TdcomuiqljoN Annorfty,, in Mrx 2OOt: -

. Fomil8 t[. cl@iqt p6*q Esuhb, .te 'Ela-rriciry sdi€ R.8d,roryAurhtriry." o Novcnba, 20OI :. fppovidt ln. Fiv.tiation of tujd st trM.d opolriry mnpuielhrcugh tne Pnv.iiaiion Srat gy ofjue, 2002;

. R.dncinc @ryorG irconc rdatioD msiml c.itings fron 45-20y. pNuulio the Corpodtc Td Il* of JDu!ry, 2m4' qhjL Epleing th. mtid,sldesbndins liv€ !d la y@ ru holidars wirb bBins tN.Iry.fos&dsrllowrble inlo fifrrc &: ydi ind

. Lowaire d. g6.sl ir@orr tlrillnte fron 12% .d 7-5% on ovd 90% oIrU jnportcd

8oo& in Moy, 2001,

SAOIA ^ epoNibh ror r@t@alhg poLcE b plomE insurry foEgnhGhn( burd climb eo[@t roUow.up d prcruinS mvtuoppornDii6, md islre of iN.s.nr Ucee, virs, Bjdae lmjt!. od orhqpspdorl Erat d .o fo€gn inEsbn. s,nc. ,6 asuon ,d a;d 2mo. it hd.ppovcd no. ly 120 biliion in nd foErsn ,nyeshdr prcjqrs, inctudins nwyrorcr3n.M&r to'nr vbr{.3

h 2002, th. S+|w E ommc Colnc .ppmv.d i p,rvotizloD i'tl.sr rbilou!h6 ln. riMlralion praal rh. induh.l FbB lo b. otreEd ro doMic rdfoGign i!v6bn, &d a dr&tlblc lo rrrfer cstain plblic sflj€ b rt lrival€

T\. strcF b pnvrtiz.d D(tud.: wscr rysctu ed w@ d€lldoojEr@muqboE: .t btupon.nd &rDon wrci ditw.ysi sapotu; udeirlan6i oc pocrar sic.j nod milt! rnd g6in sitGi v4io6 nuicrp.t si6j.ducdional sfliG; smial wic4; hottll sdicq agricutruil wic6;Sov.mmntal Fnioff of SABIC: bsnrs: rh. S.ud, Etfticiry Co,npsny (SL.)i rhernonirturg compMyiMa adh; ft SaudiT.lMmucadod ComDsy (Sfcr.dd loc.l r.feries 6 rcU s govm@nllUy{m.d borcls,

Tb. Studi swcmn6r hs am@.d Dlm ro s.lt puuic ahG in bm. of lhepa6Ltl! ald to privrriz orhd sedic.r on rhe bsi, of .buird{!aL-oM, (Boo)o' build-omopsdcresfs aAOOT) shr.gi6. A lw*ping 5fles of ddrbo.atorpticirlv dcrign.d ro ,f,Drcvr rh. coudyt Dvosod

drturc. l.mv. oblEcl6 dd fa4 prtrlrc rter6. frciLrlE forj8, mpo,srmrtlful 4d sp.€d up u@irg pRdlc titdB. *s eoucld on rlty 2,

Fh.nclrl lnceltiv.r for In-Coutrtry Bu.th.s Op..rtton!

Ind6hal &taa. \Jow d]'eted by th. -SsLdr Aurhorit tor bdsbrt &[lq andTehlolos| Z..e, lud B rwihbt. for Dqd otutuuon d found ,ndudrjalcrta 3hLgi..ny 3ir.d lhmugbd rhc @utsy _ hoain3 mF rha l,7OO itduts .lu.e Epctutng ovd 17) b hon h .ggr3.r. rv6nn nr 4 rcnjnat codr Anot!ft24 no* induEial ehr6 d. rtlo b.rn8 ptmned Lrnd f6 olh. us.r hk sise isrvarlabl. ror Entorsl. trom d v0n.q of pLb.rc.ndpnvar. sod6.Irwhent Data: Th. gs.l.r|@t vilt povide io *outd.bc inv6rdrs iafomrtim udsl!b366 ElaLd b FopG.d incbc.re ro t*itibb b6in4 fGibility qd n rrd

study pEpMim for prol{s that e sith 6c sD. ot lh. oiotrd d.vclopMlplN. SAGIA pDvidd rhis ede io loE,sr uv6bB

Pro|.d Fivwhe 1rc s6ndi tjdurnil D.v.topmdr Fund (srDF), a d.v.topmenrr.8n(c msl.nton affihdci w.rh fie MmNry or tinane, s, primsry lome ofnndc'ne,orbo$ pnvrk rio@i(.nd toEi!. i.v..bs

Th. ru obrctv. or lne S|DF ,, ,J **n *. o*'oo*, o,*" o^o,.molMd sor by ?xr..diog m.diuh ro lotrg-t.m Iotu fo, lh. BobtjshlMror rrbh.s ed.xptud{ged modmizDg dd,ngond.

- F@igr invetoc !E eligible lo r@ejve tow @st fiDecing for up io 50% ofprctd @ts {i.. tu.d 'j*. pE{pMing dpos strd d.n-up *orbngepibl) Alt Io@ @ proedad up b , qimum or US tro6j mrrro;doub md lor. rurtu h ot 15 yff Mrh No y* gte pdiods 6.onu. oBer ot prodK[oo atrd wil! rcparrsr Bchcdute de,Cncd lo mr@bprcJera .reh ows ror tn. prolocr tn qustiod.

'rhc SIDF rbo pep'6 sciodl, ind6lri4 ad tuk t srudid .incd atPlmoong mtiout dd€tophcnl fmqed q.n:o b.tdc.n indB:ii.l id.gdri6;o inFn rubeitution:o vrlue .ddcd rtulugh prcduclionio Foducl cxlon pol.ntial;o utiliz.tion of indis@u roode .nd leBi6lo Mbility ro kbaolog)| tr!roGi;o abiliry ro rbact foEig, jnvBrMr;o prcfitlbilit or inv.sh.n( mdo job crqiion for Saudis.

Urrr6 ftc gNcmncnr ptud6 wdd. ddoty, olhd tu.Is, !d mqiciD€lb indBEid pEj* ar mnind rb Suc[ sd(€ @nEpEiMll.d sL,ll indBr.ilt 016 rd dlarProcedur6lBpacthg Bu.h6 Open0ons tn SludtArrbh

Cabd Drlt6r E f€riv. Mly 29, 2OOI, thc Saldi Cov.lr1lMl ftduc.d lhc aaeBtEiJr prohoo Br.6om I2v.:nd 7-514 of pltrdur vrtu. Mmrbbg of rtlsludr rmporr5 r"ll inro s dc*ory.

A.(o'dinsly. dure, whrh ue€tcul,Gd on co,L iEuDcq Md 6.rsht (Ctt, viru6or Inpoc { derNery, e now ldg.ty aa!*!.d d $r Jr, ufh rare. A[rcmdrs ftbug r]l. @6ry iIad.d s inpuB h indBml pod(non F.r.mp@ hh .61!N duti6 pbvid.d $d rt+ @ mr ruit.bt. tc.Iy.' Tndernark lor knd. najro. drlwnSs, d oda dltinguisbDg tut$ mpbkdd brclsh rsstrabon at rh. .Tnd.tuk Bu.ru , wirhin tho Minisvy

of C6@ee !n<t Indsry puswt to lhc .Trldcmek! kw,, whicn v;

l.s,l $-rr.rr Thc Sudr l.sct rysr.n B ddiled 6on d. tcsd ruI.! or tslm rooq3 :* -':,- .

_ whch i. foundcd upon rh. 0 i,. rhe Mcn,nsr or p,oD..rMubmE4 od hirina! of tjtmc t.s,l schold.

- Th. Mhisry ofJute ocrc 6c S/unidr.rd.d judo.t syscn, bul ENrMrn's6 hav. comi@ b nne on roh wirhj! lh.tr juisd,6d3.comfticl r.Brcdd, to, ,6kn4. m 8ov6od by r roml.Com@j.r(_oo. br $llbtilhcd b I s5t ed Bub6.9qUy ehd€d. Effelivc 200j, $!Mrrlry bd NlrEd 6ob

'hc "Bor.d ot cri.vM6' tulr jssdicnm ovs dr

dtupuld b€Ndn go!tt::@r!l ed clfu;rcist .nriri6 6 wLNeimnl.hw B nplddred sd augrftrd by Rgularod plomut$kd by

'rdrvrdur frrnisrie. Tho ry4ry so DrinciDat b@rj€ h(ludr

- CoIW& ad lndurry;- Cult!rc dd Inf@rimr M$icipd md Rurl Aifiirs;

- Nalion.l Bomomy ed Ptmin&P.lr.lch ed Min6.l RbllB;Puuic Work &d HoBin3i

- TelwombiolrioN & Intmrio!

t €r'thbrr Sardi Aribi. lisn d lnc .N.w yo* Convfrrim of t9j8" on foEisntrtihhor a*rds m Ia94 Mod govnmar agencr!, howrls, e gaedry nor

uHr",ffTl" *.-** 4bhroo s'lour rh. , p4bz +DDvd ;f ,nc

ff priwk *b'Eabo i! b b..ten.d. rulq b6.d on htmic las Ahcraly ippt,.arb'rr.toE e mp6tbt. ror r. conducr of bd ngs sd ror aI ai<,i"**ij"i.tr rb mtcR|8red m!trs.. iDdutug app.d6, widin tu juidrrm oi rt . "tr,t.i"ry ii

M@?Erys,arlr& -Sie

ta8t. 6..S.!dr tuabiu Mo..hry Agocy.(SAMAJ h.3

mrmzc Nch4ge_!i8k for lh. pnlaG s4ror. The mr. hs Emircd ar, remLnbtysbbre dlt - SR t.745 sinc. Jue. t986

all &1da.4i rT slldr ^nbiA

sbddr olsMudim" (s{so, s ch{scdqh pbduigd.n.dd rppheud ot md eNnng conptrMe si!h, rh. neon.5puur qed.rc. Lb mrsDN ttrlxde

fomlrrti!& lppbvirS. &d publ,.hiDS D.r,onrl shdr& for.lt podu6 od6bndli6 a rcu c rt* 'kd.d wir! lhcn rEr,!1o6,; oubErion,@kins, md iddlinodoa

- cerdiuriig dltud.rdr ed E.l!@cLLd |ctiviti6 in{rey ddFturi!3uif.rbrdrt!rc; hd

- bllrmizilg Sddi |r.ndad! wirh r[os of FnIGt EgioD.l dd 8tob.r

To d.r., th. SASO b iqEd o€ 2,0t0 S.ld'{p.ddc .d t,OaO Golt- ri,b.d.ldr -d s rnvdy FrDitr3 FEuls.tiE of hrdtqt of Ew @. S SO b$Ppl+ Isq 90no - i. o6"i.lry .Fr.v.d srddld. bd Fwi&. .6diddthreugh iL Qulity All!fu D.ptr,mr

Ia@rdr A dFre in@@ t r ir ldicd otr s td!'s! i!v..tor's ,6e of bxbr.i6E of joid ret 6q6i.q [oiEd tiblny Fbarhila b.x.[. ot 6rdg!dtocfi&rr dtlrlci .rd DmeBidrl Bi:a.

E .t.nd EritR.qulr.m.rrsPepotu r.lid lor d ldr sir run$r dd vis e Eqund tor 6ry. Vi* @su6.ror oNDe rnd sotq ro virir ctos Elabv6, sd ftr Fdlit hd c[glo6vn'b visd ror rousm @ issucd onty for rppDvcd bu grcuDs to owDs ors;edrMmn6, AAon ur s€pod lisarr.no( lvanabh Alt vBe r.quiF, rpoNtr. cmbk *Eral mooUlr ro prce$, .nd mur b. obhin.d prior ro mvat. Womd vbnoEd

'6ldml5 @ rqliEd b b. !k{ by r}.r spoM, upon mtd. Womd hvelilgtutr wbo c oor mr by rpolls@ h.v. qpdjac.d d.hye bctoE h.i!S.Xor€d r;qEr s. couny or 6 (ontjnue on olla nid,6

vNrcrsro Srud' tuabn 3m* t "O*tr.*O* **.** Or- " *-. ^lMrc.r E on o' phrnal Mina on E r.quutd b obitu $orl dd Ed..e

Rd&nB wdki,g in SNdi AFb,r gcnc6ly 'rNr

slllmdo rtFir pdrporrs qbit. ,nDe nhglom rk spoBq (oorully rh. flployd) obbjN $o,k dd Esrden(op,ms br rc opioy.. ud fo, uJ tmty mmb6. pqdmts c,.ry. S.udiB'(tde pmir Oqam) for ldmtfiaron In d@ ot lh.n p.s!DA.

Me.li..l Lctltde: Baic modeE mdical @ dd @dicin* ft availabt. in s.vrnthospihl6 si healh C.nbs in Saudi Arrbia. Sdious n dicsl prcbl@ roquirin8hoslibl .clion &dor m.dical evscu.rion b tbe Unicd S10a cd @$ troulrd,

CurtoD Rtulrtio4: Sludi cGloc audbnriB dloe srricr ftgutarioB @mingibpdtarion inb Saudi Adbi. ofsuch bdacd il€m s llcohol prcdlcrs, wcap"m anaMJ irem thd is bdd ro bc sbtrry b rh! tentu oihrd. Tbts trtud€ no;.b,mcEtereB, turnob. porl prodrcB. &d pomgnpby. Srud cubN ,rtd p6rtDrnqd! bbrdl, drfift sh{ 6 6nr.ry io lsb4 ud rhdfoE pbbbit d cb*itNa@6!ofi, rstoor nuarz$q

'!d .s!gg6riv.. vidd dy b. anlsr€d md r[.

ownd subJc( lo p.n trid rnd 6!6.

Crlbtnrl. P.trrlU6: Pcnollia for rbc impo4 mmficte, pos.$jon, md! oBur'9hd ornlohol or

'tLsll dn8l e wm conqd.d oF;d.6 cM *par

|ar $nr.lG.^tus, plbtic rroegins, ud/o dcpoisuon 1te padry ad ;tuet€ftM3 rn sad anbi' is daa. s.url officiot, tut. Do *c.pdoB. c\do6r9€Lnom d potu of.nry m inoou8h Th. U.S. Enbss, sd CoButd.s CeoeEIhrvc m srhdins in Scudr colrE b obram tmdcy to! m Aneno cdvied 6f

B6id.s d@hol pr.dwrs dd i icir dru$, soudi aibi. ,t$ pbhibil3 th. imFr! c.,or posssim or mv r.n dur ,q h.td ro b€ coor,ry ro da ren.6 or htm (saLNrm iK.sdaioN- seron ibo\o. ft. privdc ohdshD of ,.opds hpmbibrd.

'hpone{ od dobajc audD\su,l mdii ud rcad[g miE ec6ad. Holrr@!.t iorivity is 6tuid.E<i 10 6. . crimin:n dllm od rhor

@reicLd ruy bc srdccd to ldbire rad/or a p.ie! stac., or d.ad,

Saudr dd!!iti$ do For pcmr criticBn oftstm or lhc royll fanaty. thc gov.nmnrprcn,b,6 h. plbk petrc. ot r.tigioE otncr rh.! kl.a rldouSh pnve EBhip onmn-MBIim 3adrlD r pdrDtud. Non-M6Ld s6per.d ;r viordrB ;6cdbrchoN hic be! ixt.d

IIow to obldr . bGhor vi$ror.ign 6uir6snen 8cndclly like lo virit SNdi Anbja io re tnc DB@b of.ncnprod(d!frF rhft Hosevs, pdcdro inrctvd in obtuS

" [*.* "i..rouoqn8 ln. @ro1 pDccdlE.

Tnc .!ry *s to sln blsine is !o or.blish initiir coniiclr vilh po&nlial Saldi

'mp.d.n_lhhugh omspondoe Hos.v.i to. soB .xpoM, rhe cdvMbse ol

vBits ro srudi AJab'. b qbbtisb pcenat ,,pporl wirh tb. buyeu onencd *ourdE oun!.lgh lne F&v.l .xptua. tr s bed io obEi! l[e blMs vis tor SaudrlEbn lhlolgh r Saudi 6hpmy wlo dy b€ in!@r.d i! iqonilg Soo{,s 6!b.

B6iner vh, c.d b. obtrlmd by lhc foltoetm oetbod,vi!. thbugh . srudl tEpoftr: Th. .ry ut b M bsin$ r ro .!r.bhh Did,to.@ts wirhjbt rtid S$d: inpol6 rtwusb c{nBpod.oe Th. tilr or irqorrqxoru.,qtev. pd&t o b€ obbj^.d tln de coDrulid

By this m.anr aeain, rhd. r. two wats oi ob|aining vjsi.

G) Tn sdudi @rr'rry *ill prpe u invit rion Llts, vLich st I bc,ner.dbyCb.nbq of Comce &d Indlrry md ,]!o by Sedi Fom8l Minrry. Tt!6gd o' b,l InstarM b4 io b. 3d lo rh. palrbrd o.rlld.

Thc lattutani conpdy ns io produe dris Lnq in S.udi CoNulat inK@htsaudi Enb6v in Ltmeh.d

(b) Alrmdidr ln. s.!di @otoy m obt in vi$. T!. FoEisr Midijt / wil*nd rh. orisi..l vi$ slip b S.udi coButarc or Ehb4sy in p*i!&,;y 6.diplomlic b!9. nE phoroepy ofde vis slip lnat hav. r,o &nr to rh.Lkistali onDMy.

By slbDiliin€ lhis viq stip io rhc S di Cosda,rdEnbsy, ltc rir&i.ni .onlenycm s.r tb. vi$ sr.d!.d.

t4ta thtu,ah Poki:t, *A$Nittt nsltrttto A,si:Bdin6! vsa muld b. obbin.d rom $. S.ud, Embory r htambd/Sudi

sith tt. h.tp of l[e F.ddrid ot p&i!t,I C}hbm ot:jonTc^& t'9ury (FpccD, hh@bdxlc cn&$s or c.rhqE/ErponPomrion Coucil @tffi.4 Dden 0NUSh Mnid.y of C.drec or Mini$y ofExrmi

^It iF

Culd.lbq .!d b.ructioG l$ud .o XiledoD,3 Dtptob.ll. Mrsior Ab@d,o,.r

Fl.:di.a_Etr|r-y vi._q6'r36d rdd rrv6ror E;ky ro |l. xr.sdobM'Nay d,roE'gn Afi'rR (.oBujr s.c1d) EUcd r oMbs or cortot! mdmsmcrons ror 'lmt.hm6.of Sming rhc bB n6hd od lne invdbis 4uy Dqsr oqr @ll.rpft iilm rhe m*ioE dedy slho @mutrinS rh. MrilEy tnhs Esard,0'. Diptomtic- Misbs of rh. (\abdis of lha Ts. Hoiy vo"q^ L*md a@ e brbw'ng lDstuiotu ud Cuid.lm6:

L Repqentatives of toEisn @np&i6 ed .st$Usnndls, busiBsn n ed8ror.d vilir h6 ro rh. t\rnsdoo tor mmdi,lpup.€ 11@ ulb6 incru{t r+IMb!v6 of @ar&dns !d ,nva.iIs

cmnma4on or eqlubng and invAring pnor b K@cc of lrh vM

2 Ttc Rrp@utiv€ of lne fo,.,8n 66pqni6 ed ebburmrsn oc KDgdon t! t@r for che6 io ingrig.rc .!d ,tudy Siudi Mrtdm &eH hs In tn.n @uh6 rt lt. uon ed Boer& otchDb@ o,'nauqe! od coms.e m . rh. r4@r for rh. $ne

L Appli€rioN ld@mercid vtrirr for bsi!*m.n Ed rva0oE lbar e fitcdvirh l[! nisioN by tu by S.udr @mpu6 ed eribr l@E Mjcb h!v.rtrek r@ ipptiqtim ftod Srudi CbMbd of Ldu$, rnd C.@.rc.,'ill b. s*epr.d. Bd rhe Bov.m.nr conpda, , e. Srudr Axtjns sdA!a@, s'l $.6rptui4 h lhjch rhe @ury h6 mE lhh 5o9o ot$.Lopro, r... s.b(, (ro @r n.cd io !ft6t rhu lpDhcdioB tron l!. Cbznhd of

3.

6.

Forcr8n bs@$ms Md DBld! or de courrie wbft rh. Kin8dom hs no

1:1:* .T r.. F.'q "i* by saud. visrcns of6re of rhe hshb.,rnsauhe ,Id rtc lppli@ts eilrts @Illl4d ct ffi hs ban ctekcd:6c !eeL::q mun brv. ! mfimbo, tcnd &m rh. crmba or

noh dd ouh6. mbsriend,carn3 be com.Kidch,Ecrn of |her vdrIoEign bsin*M.ed Dv.s6 lnm- 6dmB) *bo h.v. bm dir.d by$dr roDp@6 or Indutul rnd Con1l|r@ chMb* md sho hlvc r.nq:mn b.u coud'6 c smkd ro obbin rua tom rh.tr courie dftrlvvis_for bum$woN 6 bc r$!.d ukm.ly b Saudi CompMre, b rhci4@Fy or r.Ers. Af!i6 or on. of jL brud6 md,te d b€ isu.d fdbd h ce bq bBbed or btood Etlli€ r@tt:fuv [dViir Vfs mn b. g@trd ro bdDarmut wiG or do wie of dorepr4.nEuvr or lnr @npary d ebb|l5hme rns |.hl @nallldioD of dc

Ind,c.cd 'Ifurlns cmor bc eppti.d o d. p6pte who hit. o'rwrcrj:T:T:1 1' " rhcv e ccrur&s, c'itun en, on8inc.n. reqch6,!,pDr$roFi bsye. @hDu.d prcgalmerX mchejc!" docbu, ud othhwm @ nor bvc om*id chnck,, *ho vEjl rbmugh Sordi abpuie

r{t csrlblihnhr to finatj4 ,otu terpoory wo* viss. Indivrdql! shol'fu ro srl tb. Ki4dom bav. ro m. thci, apptiqrjoB wirh cok.dMonne D $. tjnAdon lo obr.in woA vis

" I"6l: r"' lhe paaicrpmrs D conl|lm,at cxilb,rm hrtd in Krsdom ddv- o 3F lcq,cd by rhe vinisry of comrce cm bc stuE! inrhal,1l1nq .'. .T. d.b-p6.'ed by s,!di o4eG otgeizns lh.omrd crbbnioG ror rh. Mfrry ot Co'lr|lr@ Aft.i ,todyilS &donhlro u. ('!b cd b. r@tdr.d ,o rb. MEisEy of Fo6sD Afi;n lok mr ro tbe @rq€d @$ioDs ,.codins !o rhc T.t.gEn No 250lDad'cd trlil1422H. mgondm! b2o/tnoo2 iss.d by H.r. TX. Minisb

l0 Vi@ tor.ddod{or whom $. hospibb pcmr ver apptrc{im for tiniredrdc cin h TsGd inrcmly an.r rh.. onc.m.d hosp,rd ptlsE o I.rGr frmrb. MhBry ot H4tih ob6mns d. oEy of rhc Fiunrd ddloj rhs R vrld..c@n8 ro orc Gt.gtu No. t2r4t .rr.d l&t t/r,t22H oE p.ldinS b28/l/2002 issu.d by E.E. Thc Minista ofH6ttn.

tt. Visa covdhg omoftrd ed indsrd.l infomtion @ b. ilrued inthrltyby u.i<insdob (nr. Mitristry of FoFs. AJIi!B o &y or iB br .b6) !n;T yf**.:, g1:"qdlg arrs4: thi! sourd b. vrtid .@ir,ns bu. r.r.&m No. 2039/2t d.rod zt2lt422H 6@Dondmg ro t5llroo2 ofH.E. The Muid6 ot bfomolio,

I 2. Valdiry oI 6m.rci.t vs ,su.d b, @dut.re E fd m Mlb wiMror lom sMlory @oE rhc vie @ h. isu.d ror mE de onc mnrLup b ihEc mnrh! mimM.

13. Had of C.Bjld S-rim cs Smr oddpl. viril w. limn mbt6s'urmxm d ml t|m dld orc mdrh f@ -ch visn for.h. D6plc sho eu Dc.d io r.par q!i6 for€hd p.ri.ds @d for rfie apphqB wbhilg ro visrru. conpm'.! and stablisbments fd conhcnngbdDve ns

14. To.!DIy Uns Bbuch rt ro o*il3 condidoD, mtrn E cr:r, visilo' mBr hrv. a vrtid pcpoG rhc vEdor tu Ao b&t b hiscoury or lo dotha coulry. He Nsi mnk lhca. vhiis on lditb) vnibr ha b p@nr . r.trd tm bi. @npmy odc{rins smftixt

cnome or to! u$q purp* dd dft of lh. v6ir, od tl|rc ot rt@drpdy o. dbblbhmdl lh.r [. vill vhii

4 Tl. nihc of rh. cohprny or *tlblirhmnr l[at h. will virt shoutd bcMroDed on lop of lhc v& ona silb lt. tdq of @trtrruron byr..rsrng S.udi @np^ny rh.r nurr b. IooM sd bs allllrEi.lRArero ! l is o m.hbd of my of rb. Chdbq, orcotlftEc dtne kindoo

So 4 E. : hdp ! .w-no| Lg@. tt/o oa/dt a1R Bi,s_ettuLh

E.orony Fh.r, lNsrDdt, fnde Rao!.cd rnd Rlguhriod

AurhB R.gulrtioN .nd Prece.tutuStudi AmbD p6G a Lb-at Frd. policy s[h no q@aEllve o! prieGmcDoN

'or rrporLR Hw.vq. rIft & ! dubbe oa Egutatjo$ ddpc.{tuE govdinB bNrne Md od. r rh. Kingdoh and .dh@ lhdlo

.ourd b. vcry h.tptit ror rh6. dr.ndhg bdo bBjn.$ srh S&dI Anbu

Thc l/rn3don ol Srud Anbi! ae@r.d 6 . @Db.r of 6? cCC Udfred Cutomudd atons w"i BanFin. Kuea'. Orr,ll ee, dd r[. UniEd AEb BmjnB s dUl Jarury 2003 b6ughr rhe nhs oi ihpofl duiy @ a uitom t% ob @jl ot lhenom. w,uh be tLtL. gootu witb rr tot ,40 pd c.nr of $* rlu. ad.ted jDt.fu y@ oqlctaly 6& of t rifi!,

AccordbS to Royal Dc@c No. rrtl3 dar.d lO,5.l43O H, con6poD.lin8 ro11307193?, lnd to d\e Srudi Cou.il ot Miniski! orda No,s6 drred io/5/l4i8E(lzl9l3?), dE fou@ins csioB dulid.t t6 havc b.d h effcct line l3l5/(O8lt(oEpoding b Jdurry 2, t938). Md orllc basc @lllilfu pr.ducB G dury fr6...8. !ueq, ricci r.q llmsrd

cdr4, qdino4 bftcr. rcrA li\ d*k &d n.d (G.rh tioh)t (bbm .luls of 20yo !e rmpos.d on emo npoi.d comnod[,e! fo, $.pu.pot. or pmh.tne 0'. ndion l inthr ndeid. In onnury oD olla n@ r 12% .d trlom oD rhc 6! iBullM ed ltj8br

. A limicd nmba ol ikru m subj*r b curom du[.s otculocd o0 6e b,!is ornoc s.reht or c.pac'ry. 6ds tha d vololo. Howdd ih. tG ror rh4.

. MmLB of rh. anb t{3k wbo G rigD.1on6 ro rb..a'mr b h.,tGttu. dd .rche3. rd ro orgod. tusn bd*.4 lh. Arr! Lcrgu. s1!r6 egMled lpecial conc@ion6.

. Inpon fton lhe A4b Slll6 with which Saudi Aahja ns bit e6j rh. l|ldo.g@Lr e a$d.d to ndher ,!d!crj6B of dut

R.yil D$e. No. V 56 nckd lo,to ta?OH. coBp.ndinS b Ju. tt, 1087, hd+prcved o.lnteturorrt Btuseb agRamor or ta Jue ,o81, on illr HmDjz.dr oM@rry u.spra eld codinS syrh tHs, A@dng 6 rlr. Mrjj6 ofnn'M do Nluood hroDony Odcr No. ]/t30) dlrc ta4Ol4tOH, aBpondh8to Mry l4--1990i lhc Kingdofr hs b.o imptmndng lh. H,tmn,&d Sysidn nM;,r/dr4r rH, mspondhS ro I/t/t991.

tI,! fr@-.hiry da6i@ e'rds Lbdtrdoo of fNl3l E dc, b $inulat rD*d'sd M. b. @mDv @mpdjllvc. vid. s Roruiid or rhc Mbin.rist cou;t No]? 9:d,5 r lo?I.,good br Royar Ddr No. M.., o dd.d s.1.r422,(ftpo' dhg ro 23 5.2001, r!. Srud, Oov.mme Educd rh. curon dJti6 on dtco]mdnn

-'nd fal m t29o-bd 7qo skronB b 5 F€q wnh .xcepron of lh.ronosng. with .ffer from 29i Mav, :o0l.

For dcldlci nfmod on dur.s t6rd m dtfftn! poduft, ud m rdvis.d bro3 on to ou kbriE h@/u44silgkkb.e9E rnd ctjcr d c.@ft61 seri@.w.b€itc. bb:/,^rw.eudiasb6 nd/d.f.utr2 hdr

Inpod Sr.d.rdr & Prc..dw..:Saud Anbis Shd,rdr OrStuiarrm (SASO) romutd6 dnonrt shldsds for i6'lffib6 d prod(l! a {tl a sbnd.rds €lffid *ia[ Gsloey. ..lbnriol!making dd iddniiarid of omDditiB &d Fodwls, neiho& o, s.qling ed

In Nownb.r 1995. th. Slud MiuFy of .{)@ ijut.mrcd r!. h6u|lddconfmity Csrficlrid pogllm (tCCp) in @din rim w,th SASO. S.ASOFlie primrily m inrh.rimd srmds& wbft !$ing Sard, lp.ci6cedg &dSASO sp.(ili6rd cmfomrry is appt,.d ro ajt poducts, b.ri toca y prcduo€d Md

'hpon d. to provj& the nE6rary @B!mr pmkllFn. Alt or lho +prcved SASOp@.dG,

'ncludins r!. tccp Drcstll:m, *ort wlhin rhc suditG of rt.

lnr.DrtioMl Srrndlrds Orsdzton.

SASO, in addrrion lo counr' om.6. hs rufonad R.&onjl tim,^C CcnGm bron:lM Dc Earshbon pl1)ls. cdry our vqitic.bon ot @ntooiry hd ,sESASO T}T. .ppD'd limB_ tn $tu N, rh. SASO cobE, Offie eiu rtst quie @dod !.rnpliig ofth. p.{tu lr ud rdirS.

Th€ pmcedure for obtrtnt.g I Cc.rnote of Cotrforntty !.e B (o|lo*r:I Tt. qpono inbmits I hfld Eq@r b $. ,ppoprjaL SASO Couby ome forrNperd ud 6in8 ot rbe prcdud ,lquiinS ! c€difidc of c;.nr(hty,qdnn eith ltll d.6il! of rre codrmnnr. The CdnFy O6t. chphb rlc ncc.*",y rcps rpp-p,,oro ro U" prca*r ,nods-ro n.d SASOEq'ircImb ftae 3bps w l d.pao ur!, a*mgpbMl@(!nom {d sbdq u. pndud j, 6vsd b, ! vatd Eguhioo, d w.ll soc r.quocy Mln whicr lhc prodd 6 *pon d. tr th. Ftrducb e Es,d6r{o. @uEy ube wr sr up e itup..rion plrr, which my d my ,or EquFprodwt! ro b. rdplcd for Eslin3.. Ilit. prodfb e. nor rsrsl.lcd, d.y wU b. llnptd dd lclEd a@rd,n8 rosasrj EqMIIHE. AlslruB rhc rerDs md/d itr FbM plod@ sj,ndiory@opruc. G'j|l. . C.nind of Confomiiy i! $ud Tft Cedtioc fioufttuconpey Oe sbipping doc@nrs.I If the.prcducts do noi h..t lhe SASO cquiMor!, tie .xponcr wil b. givd a@rpl.l. .rpl@rion of $. dr[c,.nc, tI &..pbbte @livc riion-js nort 14 oo Caiitror. *iU bc Bu.d rnd lh. Mrn,rry of Conumq SASOEpEdutrvs d |n. rmlotu si| bc ldvE d @xllldy

ibe pon ot dby in rhe KinSdom, l[. M,ntsry ot( ollmE-qd SASO.wilt requ.sr d. s@npsy,ng Cslrfic.k of Confomry.b< chel.d fd rurharciry Dd tuhiD3 d.hils. Anq

$rsrirbry ch4tl' sAso wiu s4 a l.rhr ofElasA lilr oflsduB r.gulalod bder ICC! and addnion.t infomirion cr be ec.sodttuough th. hicmel at ww.iao.sn

WiA_.fe-t fiom Dedbd l, 200t, n.w jr..drd! for th. I.b.ling ot Smctidltybodif!.d food hrrc b6 itrDh@!.d Th. Siudj Fo.d Sdcry Cmina d a d;p€@t thftshold nuimn tu dcfrton8 r gdctrc. y trDdrfi; rood, Md 3uppheEchoose to d*lm $eir DrcduG 6e of g@icdry modr6cd n.m. IrG Vnj;;y oiun:tl1* ed Ind6ry B qDecd ro @Ddd tudoo r4 otDrldd for rh. e ofgu-.tialy m{ifi.d prcd@ S,udr Mi,nFy otAgriculM Bu.d nd Esu&uoNm-l"rbD!ry 2001in epd of lab.hng for Btrdquy mod,fi.d food. SalhnitarGor u EBlauoo e a follo*:. Corpul$ry l.b.linS d Sadid y ,.odi6.d 1t6 fn r[c foUowug pr.d@:

E1h eui.g. *s"Ebl". ond dGi caulr u$d s rodd6 rd @di Mb db&Ly, dunr, mn4$],t6, ch!fi,shw ed 6. h4et of dt iB 9?eiplmtinsseod, dd rg.tcllhr,l Euptets sd deoEtd oLdE. A hia.Alcnur h.thfr on lI trbcl wjrl thc rqr.Cd6is Cadioly ModificdPe<ld (sr ed lna sc'd nBr b. cte,ty hda in AEbic.!d r;dbn.dpanr.d pmruM y sith an Ink cotor ditTffir from rhd of th. main prcd-ud Es.. Go.lcrlly mdifred pbdm or gmdcaly 6gb..r.d poducB dpon d ioJ.@ /@r. hun b. .ppsrd for @d,qrior r thd @uEy of origh Elchshrptunt md b. !@hpu.d by a hcatrt cdlrtec i!!u.d by r!.6nqndgovtu:r.sd.y ct@ry fl.tin8 lllt de sen.riqlly modlfi cd iryr.diar(s) ed

oppDv.d in th. 6uby of disb to bu@ or milEl

. hpod ofgh.ucat h @drfi.d e,tul!. hrdr, .nd dFR by-pEdu6 6 probb,Ed. rm.E3ukrom shrll opply ro a s.ntuta y mod icd inporcd md l4rllypbducd oSricultual pDducB b.B'MinE @ y@ tun lh. dlre rhc' *4 aud(F.bnury 5,.2001) ProdBE bfl do n;Dd tn.,!q@m,rs ortc EaularioBw nol b. i'tow.d ro 4cr de Kin8ddm anc rhs g'e paiod.. ,r

h. Annd ed Plor Qffitin. Doarrmor of tne Mintr, or Agncultu qllc GpoGrbrc ror rmptah.nrina r[. ,!artdo6,

S.n. food .ddiriva md miioxidab u!.d in f@&tufs iirc additionrt tcb€lin8

For m info@ on on tt6. Equi@r5! rh. rolowing @y rc @n@r€d:

Riyadh I 1471, S.udi Anbit

Quliry conbol ud lJsp4or Dotu.Minisry otC.'r1llr@ rd |ldEtsvSldr nhia

COMMERCT I, DOCUMEMS

It.. 9dlmll Equnld fq .n @ffii.t s[iplmb ro rn KjrSdoD or SuniA6bia ft:

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Covmd dpenditure on rhs Nosetou rMsignrfiturry durina th. pitu p|d*n.n d'lru tur€ rl.\.topl]Hr,[o@roB E,ch.d sR t64.6 bitLon, or 43pdat or .h. plrn s 6rd inv6hdt *pcndinrc whit. silt ed hetrhd.v.rop@l lll@boN srDd !r sR 68 b hm o, 2o F6r of rb. bbllt@doE4ro(rboN Hosdv. thr rdd ojoyd srgnifichr slppon dlms rhe Srxth ptepand-6 uc hlllM Bo4B &vetopmmr dtedoB jtrcE!.d b sR 2t6.6 bi|ioD,u rrr FMd ot he dddopbftr clm bbt,IMUotrr wtut. rbq otsd ardndu &r.r@mdt shr up io sR 8?.r biuion. d 208 F6! rbs bort s.cbdaccounk! ro! 0n oveNholming std of 7j.3 p.aenr of rlc bd devctoptun5clm- inv4h.d allocotioB.

Th. .s.v@th PId wi66.d . subsrmlid inclle i. rbe .IqrioE of huru@.rop'rHt stor, includin! 16 b4rc D, s. rlc.ducdioo lecror, s *. 4 locEtDa n.ao^dcrcropm{t @!oB. aI oi *hrh ojoy.d 2 | .t psc.nr ,nL@c @mplretwru,oe suin.rier

'll@riob. nris sme h hltlMy sitb rh. objdiG oflnd lo rcp ! b@r s6 @nofu d.v.lopMi &d nRkholoel6 rhar.nsge wdtd qd.. a rhc nccd hs hm4.d ro d.vetop c(yeB,.du&!orl and know}d8. opab,t hca atons *ilh prohdrng kai,ng -i s*,tt" romoNEls. uu eubhng thcm b tep rbEd wi6 rhe nfom on Evolution &domrsqon khnoto3y, od to E $& l@! b o6uc. pEddio. rdprodErivity in p&dol& sd lo inprcv. rh. qu,tity oflif. jn rh. KiDgdob in g.ncEl

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TBdr, l.-hrury 08.2005 (t{2 pST): To tbs.ft.! Srudt Minrnd td CdrrlrcaJld Indunrt Df H6him A. Yr'l@r c.lt.d oo Co':1l11* Mhurd of poLsrmHum}ln Alhto! Kb.n in his ofiic€ at lhc Ministry oI Com@e. Srudi Mjnisld va!Mnpani.d by high ofi.iab fron Saudi tuabia. Minj$d of s1rL

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H@jd Yr Hiaj m do pemt d lnis o6id.Bolt sidq diw.d !fu of nlu.l inr@r suh s bjLrEl rad., iG€h:61mplntion md c6pq.don

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'It C.mft. Mirisla .le epriscd rh. Sudi Milisra of rhe djftcujtiq li.P*rstur bsinsmn w.r sltt frcing h 8.fir1g bwjn6 lis od uged bm 6bor tlb $n is$c io r&ifillG bu

irJ. Khe hforn d ln. S.udi d.t.g,hd rh.r pfisb! lad bhx, tlbcElir.d jk !:d.'.glm

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s.!di Anhr L rh. hlB6 Mrddt. uffi Mr,td [.vjr8 eud ts & hnic orov.rurr rw br roo. Asdrt clob€t impon oi srudi AEb'a h us$ l0 biuim r wbjchi,atlqu! ,hm n 0 42.,{ wh'cb is of @uk vdy trnt.. Dhnr 1999_2000 od 20002001 P.kirb s bad. pcrlomoe lhowcd m ,nprcv;dd bul rh. grwrhD.ldhal B trill uddtiliz.n

In td 2001-04 rh.lohl bllft oflr d. t s6 p.tnb! 6d S.udi Anbir ruus$ 2127.225 milion, whioh oEtitlrcd us| 3{3.520 dillion dpois im pikist!,ud^Us$^l?78705 milion-rmpotu Inro prtBb, lhu,.gNrmne a radc deficir wont\p4Erol bd. d.ficn qlb siudr Anbtr is @. rolorg.*dc iE orrs of FEd€Mpbd@l!'

Plk-Saudi Arrbh trd. volune to douDle in 2 yerrs

wednsdry F.bru.ry 0c, 2005 I l45o psn: Tbs wc sr.d b tr.ting b<N.q pflmc

:+q _g"lhl 4,9 &1 16 oMbd saudi d.t.a.tioN l.d by saud, tulbrdHsbin bE Moh@l h@ r pM hoe Siudi

Midisrn funno add€d thlr bu€(Erc !,sn b S,!d, Anb,a h4 ben Rtonkdprcvided good oppotuiu.s tum qhich (h.y N

Dencnb8 I gd deal. P&ish &d Saldr Arsb,, aglc.d @ onee cmp€mrion Doromr @q mcheDt@pmdoo dd In bulrm 'wle&v.topm.nlBorh d!. auh6 doriti.d rh. atu ttt€ r.t@q intonDrion hhdogy, pos6sdmuoG hyd.r p.w.' proj4, houinS hvetuck. rood prcc.sing, fiorirulu.,

lgriculrtE dd dlq f.m.g h pd}Jsb sher Sludi imp€rr6 @utd uv6r lh.nc.piur dddtertnro jotnr votor6 qrh prl(i@ibuinsm.n.

An,.l.\ m b.mbq sardr d.t.sa!o tcd by pl@ T\!h sin Bdd.r Al S&d durosdqDa-b@ iodrt *irb lll. F.dmt M,iErq for privarzbo & tnvBurcnr DrADdrr HlP shr*t srd rhd Al B4d@ tnerution l Goup aatu) m ogs ro{prore 8nd ,ix6 on the pos,hitirGs orbusines dd hde Ehnons ,n !siou fietd,hcrulD8 r'Me, Ideo4 blomuon Te.t&to$,, Ag.icutulq Me!f&r!uS,:al.: yl"g1'''e.r"TT

""d scd sftE m ns ts.* snd mu.r r..sa

osr3. d. Ddrcdcd rx.r ro ehioc l|. f bry.a BtO ws in rh. pmcs ot sdinS-upm opcEimr ome r pal[6 ro rlnh.r n;ve ,!.ad rowsrd! dprmns rh. 16 orldea Md lo idftliri rh. plnru 6om de pnwr. 3ebr or prj.sh for tbc Joinr

P.imrl urk @k.d,Uar rh. pnvoc &(or s w.ll G rhe Cov.lrftnr or r,ngdomor rlu tuab'. {d k4n ro prcnore bBrnss &d !!d. ddioB ber,cq d; Nomodry 6uts'6 ald irhd.d ro rut. rElbre inv..rrMr b rb. mnDt ba.6ls olDE|IM d o. p6pt. of bolh $. @uorr6 s rcU * td $. b.tldMr of::lT1 l:n.'i lT* prince fdki sid rhar vRirns pitisb dtur. rons nm.

s a wel de\.jop.d cohE), *hi.h had .tui.d sa @uby- w'$ thc Brar buDe ud gpr €.ohjc poond. Thm wo;ld b.'lquhr t'l@ urdcroo wir[ rtc bcile'M Dd lh. so@,Mr omcids of bou

Ellir- vbrh wdmnins rb. S.udr d.t.B&or\ F.dht M@k ro, tnqrhcnr &hh!at'!D Dr. Abtut Haf@ Sb&kh sdd pa(istu durins lrc tasr ftr. ed, halrtcadcrshD of pBdcd Cd p.dp V6hrEt ed ft. pcftr

3ry.mma offtmc [,liuscr Zdatu sh JatuLi bad wo, tred hqrd @ mr. lh. ;obryprc'pnwE sbr by dd.loping @durv. ,dv@nr poticia. L vi* of ou d.rp

pr.c.(.ofrh. cxismg potdnat d bolh rh., oulD.i, he qd Th. MujrltrSave rse &hi.vco bt PrlBtu rntuusr nro eonomcsuouE@q-co6stacy o @emc polrcd dd @Domy on.ncd Ffotu, wbrcl

:Y*_-,_-"::".,T1*""d 'PL 5% @iomic gmMh aiid r lnod orpd.isrrin Fohgn Ercbog. re.fra ud havins d. b;$peromu i rprrlt lutd. H. iaid !h.r patB6 offro M krivq,rr.cti\. odtrupaR ,PrivdEnd

prognn *brch inctudcd posa co.rd ed DEhbuLon::^T11*, 'I:-llTp.. rEsgo. KEsq in FuEcrr scbf H ib Binr Lhib4ii:l1 Il:'1o, r.rur Md aRf rh. .nhducrid of D6gd!!on por,cy ror,q.em (dd hft eo *isr.d v6, lepe ro,nv.d in,n. @ltut* or lMdhc

Tt.,mv.str)mr oppotuind ilow.d to0qo .quiry b foreiCn ed jr fy r.lricrion ro irteour 6.ir drv,.lende, h. sad.rn. lw.r Dpnbe{ rbc d.t.8!hon to 6c SDup f6, dubtabDS @rpotuoDcftiiodt_ or[F a scu B ro NEr h firdDs- .uiLbr. lo.!r p,,o.]. toi ;oinrv..t!B. Ttr ch.illM, B-olrd of Inv6b{r tvt. wlsm naqqj, rh. s*dlry Bol

Duinr i vBn ro rstmbd oD s.pl.mba I t, 2OOl rudc by t i@ Trkr Bm BudaAr-s{d M rdnS ll.n.mbtr of srudi &t.!r!q ! 'Eb n6 L,!. F.dd,lvmBkr b' hr.hhdon md tn€8h4r D'. Abdul Har@ sh.*n, the pnnk sfldn.t vatrrg hrlslrn ,tur r ton8 bmc had Rol.d lhrr pot rtu ,s mw a w.lt

wh.n in Middk E6t cowuid .v?ryon. kio* pahdm s unoduakd ed uka.rcdco.rdy d bd.kloped coury whrl. tump.ntrg $e occ co{ha rho lfuslora De'B[houing @Ddt r $. EAbns m EB/D! Sno !!d ,oide.

ftouah. r c4 b. da .v.d thd paptc rD Srudi A4bii c s. c jn CCC .nd Mddtcbar amtslc! do4n1 kros nuc\ abod de &gEe or devetophmr patilh bs

Nrv.nneBqrh. wir of Saldi M,nisrq ot Colrrlr].e &d Indubies H6him bnraDe. b rshhcbtrd o Febru.ry 9.2005 &o hd qrh comme lvtinsh offMrb Humyu arbb Khe ro die6s ,|@ of dunDl ifuc! $cb s b aErrt@c dv6trcN c@p.mioD md @p.Errm in b|fu t&@c dd.topmr Th.f&sre' turTti 'ppriscd

rh. s,udi M,nG,6 oalh. oveial coDdhon of plritueconony od lEdc and dF M0oni( Etom udcturo by lh. covomr ofresh m rE.nr ys md d. Srldr Anbiu Mintrte said: (ih!l Seud bujD.fu

.wn8 rhc mnic p,.8la mde 6y p.trsra,.

l_::,,1y.Y,"T b@h. @tc did.l ror s.udi aDbia od kc m oss forDrdphs or bolh brcthfly MBt,m skr.rt Ag.h, d cs be und4rood rhll

::'jT:-,", :lch .r". T.d !o b. hElduccd ro bremrion r sorr4 incturrdsyur /@E bt dln tur uctiol od srrr.Fc Dld.Thc Co'@K. MiNd rl,o dppns.d rhc Saudi Mrub oa the dmcltdd Lb.r4!h b@snd sbr hcdg ir gdiry bEll4 vis &d uacd LiD b t@k db46lsklolm'|lllb6|n4@t]ro|iv'

I pat Bcinbmm FqL$ turc qhich sa atqoys3.":: :T .l ". quidli:-b*an inmnu b,('"4 In r. tuo auhalou( n Ew ds obr*. tn nad Io t@l hro thc dimc,iris lh. saud rNiD.39Jmrenu m getul bushe vna Ttr< lhd. 6 r Ht n..d for botn gov@nts ro lookhrc rB nkmt prcc€dlru !o ffihur bBrTsn.n .\m o n.w mdiM bumsPs-pr. b Srv. ro ttrem &. chde ofenhocins lhi! Ehton dp4i.Iy *h.r th.,flelol.v,r r r b&ly dculcd (Educ.d). Th. Com@ MiMta rllo !pp.i!.d rb. $udiMnise or fi. dimculbB rh. pok bBjDd|m flilt &.rng in 8.nns bu5ilK qsond used bjm

'o 16[ inb dtu is,ue b f.arire bumer;@hlr'.

s,o'E:lwoivni.douor{frndooddri0]^dun|u{3

P libr,3 B.l.re ofTr.d€

T.btc - BMrjor It€De of ErDorb to S.udt Anbtr

3.207.45 9,098112,928,022521.09 9,570.,16

6,7t8 t9

3,392.10 5.611802,127.82 5,t40.652,t922J 6,724. t849)6.22 r0,725687,338.94 I2,04?058:30.0t?,t31.89 13p64.65

1,t69 91 B,5n.228!5202 27,19t.t89)64.12 29,3t7.419:75.08 3t J17.52

tt,t20,64 4J1a,9lt5,06023 7!,2|.6420,218 93 71,791.0621,U1,a2N,0 .49 t92136.9720,911.t7r9.709.65 179,258.19

eL{p brdlc dicrq nll dc

T.bL - cMrjor lteDi oflDporb f.oo S.!di Anbt.

T.bl. - DM4orlrem ofExPorb to srudl&abts

r72_9!23.03

r8.t6 t6.42

t*!* (B.sri &d dna 4i.ry)r.r!b .o' nrpf a0{t4n Fi

T!bl. - EMrior lld! ot lDporl! rtuo Stldl Anbh

P.hl.!hoil,'fi!BiMimu

!4{

PolMryl ollondq U@ *!d

odrmu we & brp

R-ESOLUIION OF DIS|PUTFJBBics El.tim ltorish on lI. fou.Ltion ofnlnat rsr ri L ae i, rh. cs. ofrnrmrl bain.s. I' i . fourd dEr nos or rhe b de dieulcs coutd hit. b*. avoidcd ifbob tle p61ne! were drd in lheir r.rtu of rrendrMoc( ond $c rm of 6c .3tumd wft yagu. &d rcr popdly mihmrc.r.d byilan r.glhrory a(honti6.

Trad. cd be on rhe bdis oi irHocrbt. UC The agE.lmr should deFjh.ltclc]ft cl@ly dd propdly auriohdr.d by r[e Sddr Enrba$r/CoButnr in IndrIh6. dl)M.nb lhoutd bG on pmpq tckhad ot rh. @opur6 ad stoutd h.v.

ttdel^C c TML Dbpuk Codaitt *t1t rhe Bdtstt/Contuttt C.n nLIr. u&,. dbpuc wD up bcl*@ 0 pahj|jli @n €ny aDd Saud dlbUshnoq !omprarr 'n lnE Gg.rd cM be todg.d qrh rh. Cmcid WinB of rh.

Ehb6sy/CoNurar len.El The comptaiN shoutd 3,ve aI lne ddrib Rtdet ro lhedtspur...oprca or dgre.h.nb, uc. dd .t ml6roDdmce Etevd !o lhc c4e

Thc, Ei$asyrcombc Gadl stsiv* iniriiuy r. s.ftL rh. dt|a nicabl. by6r0blishint lirier wirh both ric Danies invotv.d. h iho csc of I non-enh4r!, $;dirpuk triD b. Iwldcd io the Eepqr,ve S:udi Chlbbs of C.lrme sddoEry b rDdk

'cftl@L pddine jcfltoor fuhc. l[c plkisllo @do.,j6hll b€ ofrcFn dvic.r'alitue ro fit. r 6. md thc Srudr Adbio SharEI CourG

In $'s c6e $.y h've b s.ck lbe b.tp of c Srud t+rt consulbr io pEs..r rt.ir cern rhe . o@. Thtr ie ri. hod .tf.ctive r.p tor sling dispub, but shortd b€ u!.d 4. 816on o

'nvolve.rDmd'frTh. FmbBJ/CmubF Gdc,l vr aLo @iv. comphn, agaid patdrbnr

cq, rhe coButrr. cdent .d.mpa b nch M mnrbhrntrm-r. I rh. hdd pdt is ar fiut( fte micr * l b€ rctqr.d b mlccm.ninlll& adhong6 for Elilr rctioD al lh* m{r

Som Ihal$y bBrnes pddiB @ ed by . nnor s.gnn, of rh. bsinssmfr iDs.ud AEbra- Tt'eJ will o'dn to, 8@d! o8rinr cEh dd 6bb.i!h rai$ oncc @!l Eeubr6ne4 rmpod wiU b. fird. on cEdr bss bd d.try p.rmenr or ev?n non-p.yihr qpolc rut Lx. du. plquuN !L!r ,ucb hci'ArucFudiq. r_t\. *ftr of a drpuk &!ing b.hrem I foRig. conpdy bd a S.udipary,.bc.roRrSn conD.ny sroutd coBds smg dc p0rq D saudr AFbr!, s thalprohc bc Br M6 rhor. f:voEbl.JddF.nr w tc oforc.d

If t dispul. .ris*, a coapey could 5!. , or €utd bc su.d - ia Saudi couns. & ar6ux, n isinpotunr fo' !rcmpo, ro!trd.ubd. b.forc drsg rnow poeno.r dBpLt s wiu b. r*tvd. Tlis hvdva rhE. r@otur esd.EnoN.whdns to 4 sNdi a@ o @6 of ol[d 6u!frs, th. ryF of $udr trrb@l bwro D. oBpuc h b. r@lv.d ed th. Dosbrliry ot ,ltiFaion

Th. S.{ti JldLld SylciIr

-SNd AibE, fd rsluhon of dbnur.r. r bdSn @frprdy mighl bov. ro ,pp@r

MroEa tuett orhbmb Il. saudilJdrc.,tqysrcn @NE6 ofborb sed.r;disdd speiali4d tribruls. Tt. @'rrs dd rrib!&tr my 6cbt ot I onbin.tim of

Th. Shha muB N rhe @urr of8.n.rut tusdrcnon in $. S!ud,ludi(rst ryrGmSb&i! lLd8e pEs|& ov.r llmfl dy d*pur. utc$ SoLdr hw prcvidB od.frNeMd 6ualy ,ppl, lshb. L.s b .tecid. a cs. Tb.E L, Do tift Imr within *hrch ap|ny nBr bring . h*suir. All deisiom of Stun as ould b. !!,!atd.

Th. Bo4d of Gi6md hs $. erclErc p.wr ro de{jdc dspre ovo Saudr!"ovtl:md dErds dd ruy delid. sonc rlT6 of @irl dispure Tl,. Bordor un*me oery6 0 syn.m of prcdmr Dar,oG of ri. Bolrd of cn.vm6codd be mDeal.d

SNcdl olhd tibulals dlo twtr dispuB D .p{i.tEt .4 of Saudi hq. Tb.ovr Krabb D,rloEk i! prjtuity 6podibt. fd .ntftil3 rh. j,,igl1gr of . S&dirib(it Th. Negoriabt. Irtuab (omn.. d*id6 csesmvorlrng Drs or nches.i prcmi*or, not6. od ch.qLes. Th. SAM_A Cominedolv6 c.rlls Jjspub b.Nd b6*! ud dci domE. Th. C@ ndotrComitle !r lh. Ctmb.. of Co@rc. eijb in d{iDS Fobl.s rb.t ei& whd ,orc,lrr @mpMy in!@ts b (hhg. @Mddd !968. Tb. pElimnary Cotmn*ror o. smtem.nt or kbou' DBpur.s he.E . mftE rctarcd ro labow ;d .mproy.c

ArblElrim i! s icpkd prerce for csolrmg dsr{rcs D Saudi AFbra. Arbjlr.lobNr mnbm ro . rlerailcd d of r'llir.'mts rhlr 3ov4 rh. stocdd of 'bilrioi,b. la8rx or lnc ob'hbn, sd Evr* of tb. .rhihroB, d.cBid. Th. ctutu oflhc ebit loE nnn bc dpd in Sbaia or Saldi comdirl tow. S.!di llw EqliB !c.trn ro appov. the dbiFalioo aw&d. In rh. c4. of ebitntions *fti. saudi Anbi!.ih. Civil tugbts Di*tomr. 6lbrB dl aditrntion .wfdr. IL. bo.fici,,y p{g min v. b pditioD a @ud b 6f@ m albidid dc.tion.

Mtlo b-'€cl4mm' o L.g!l Pm@don for C@l.od Fo,.,gn tnveftMr IJNR|nc Mullilardl Inv€harGufur4 Asdcy (MtcA).

PAIOSTAN INVF,SI1IiENT CODE:Th. s.v.lrmnr 6 opq b foE,sn inv.lhftr rd oltm a pack!8. ot incenuve @dtur rotrrgn rns.oB As pf otrn mkSsrcd,nv.shdr pdmohon srd.8yi rbe3ov.'r]md u.dtul r 6nrpE6mM pmsnm ot d,!.t ..doM Efl)mmcludDA ljb.r.liariq pnhdz[on $d ddguhtioD ro brir8 rhc oDomy inlo !runy lMkl-on.nkd sysm This sa armd c,ptunng rb? p.rduat of $. priv,r.

sme d6 a domdic invtun\ sr'$ 'he

deptior ot \lGd rdsti\c ru lrha d.feM pbduclioD, bmting, ed bordalstirg.

Thc n.w Inv.rmcnr Policy pFsds .qud dGh.nr opptuir,B for borh dorc!\ed lor.i8n invsbF. In nes potiq ,Apnt looqr fo,ergr svcsh.or on rcparidbtcrllow.d j poE Cd.drion. l.r@@ujdboD. higbsly

oNauction. pon dcvclophdl ind oFndm, ih. oit uo s6. sd,c.1hrt!trm, |MMrmg. borel,loun& agricutruc sffc6 &d sc6t sqrou.uov.lmr-polrcF qdonglt f.vor ,nv4rmd. popdds D lh. .ngrn.dn&/capihlgM I'mur&rm8 s4tor $ar hr\c la4.qpon or v!tu. attdirion dd lo(!l onrdi

Th. 3Ntumas ilv€h.d pol,cy povid€ ! rncf,rivB, (otuesionr, mdlicrliri$lbd ire prolidcd ro domesc InvdroF @ abo ,! dbbl. to fm.Bn hv.rbtsqrrbdr di&rit:mtm A Duebs ot coocbioro, Mh 6 qernpnon t'!m cu6tudu06, sr6 Lx @!€ioN ed ! h q.n nm d dr€h.nt, s *.ll s all@lccdr.DaE alion rlcililiq, b.vq ben idnlduc.d b @.ldr. indur.irl d.vd@d in rnecohEy. a @mpoqF schem dnabonrt Indeid rcnes .ngulfins ,nd,;al drsks,

3nuli ant ncdtm indM6 wj6r |A oI its boqd:ry h! bh bucb.d b

Acoordi4 ld Dd Inv6lrmnt Policy, rhe imentive for f.* induriql rcn6, iietEd. m$ ed dDon oridr.d uill wjl be s 6nows: locd DFItbdL my b..llos.d pDjan finacirg n &dci Sd. up io ,20 p6qr ot cr+ors my b. ,Iow.d boon6uc brr @ {blcct b payGnr of dmie hd bsi ErFn of wsc &do.Rcnv. rcm b. rrotr.d ro brjff eB md d$ ro bondcd tunutitun8 h8,lLryTu or. &n my.bc @kd d p& M$ dn sm 6urcr!* ro;ft,ehr$brd, on ccrlrjn iks: Ini.r-mr b!roId or 64hcd Soodr '@Ds.a",ting ;bmry b€ !llo*c!i lrnpofl dury dd pmvmciit br q.mpno otr mponcd rehinFy

Th. Bd em.nr slso ebbtbbd b qpon p,deins ad. I EpZ) h K@ahi rd Nonry ya -u s'et ud tu*atpindi Tbe l@ti€ m s folos. @npt.Fcx.rqton rrcm ill leddl, povDo.l Md oMciplt r,JGs, dy Imisn .r.h;se

'.gulikn5 q rpplisbte in prlieo up ro rhe y.r, 20001momc drru'u ouErd.

"rhstu d4pred t6n h, rhe lo9s. ituy. on ,nuy b. cfr.n folwd ind.tDjkty: impon oacqup|M renrMy ..d mldir& (rNtudhg @np.Ddq sper p,rts ed p;cb,simihdi

'or cnt rpn<e< *r-!p in rh. b.. B qenpt d 6!m.I Ld@l dd orovinc;t

td. md .hd. iEllulg curio@, dd.t qt . h &d uliciFl Esri .od.wlrdrr"aaL. e.t.i4!6.d Fr..d{r - iAdt !..e {d aFr .do.itde.6.bd-by t hdr rr!..d!s z@. Asda @z^! lol}F..d Mdbti q rm F!.d Eraid.. of cfi!|; l00 Fi-t E!.,|#i .d F!6r! ;pEg c Dide tilit b. i!r4@ 6tof tm &!bt 8d6 .4'd bbler .gs.Mt!: rbi. ofqdiDs i! .xlott Ebs.itrr ad e .ttowrd iore& rb-cdrdrS tu 6i. of riitr E r|li... b ,ryDd of drb jd|q o v.b rffid dlyi -d d aa6s h cF.t F..-s d e.|!EbqB,gara^tund.Eitr!Ed.la Ulibd Slr!t_i! t h9,.rli!g dt.d eFigr bv.e ir p.Etu" A..ddi!S totu ldr@nr Mbidy of l||r'..r.@bF dc.r ft.i!| bvrd 66-ttUS M rr.b tlr,t&6 d!b.

Prkirt* Th. Lng Vi.rTo bddbrd rh. potihe of @domic dcu,od.,uting. i ,s hetptul b ldopl a vioor tq rry b€$d on irc{<t-3t!up ( ontt,ci MMy of lh. Ar oup: w. m conceh.d wirhm /Nsb &c onvraosl@nontr .n,eHr gruF€, cenkrcd on rhe o$nhhip olrqc. erofd. In .hc pr.Bhurb psjod, @ @@I.u oj $ae 6ou6 w.rpo*dturiy rcpBed.d m rtc poLtist ryj.n Otq gDup6 w@ impotur fo,lb.r

in$ituttod or tor tb.tr mo0opoty of modm lsrtrpor*rou_rbrs. r@try, mhfle rb. grouDs lhar w,.ktor ac{urc poss oecrsc otsctr 64 urcup6 rur th.rlbE wi. d pol.[co powd b@e of $.n .orcnic3!frglh or t]t.n doninction ovd ictilutioN or bd.e of rhe sia of t!.n folowing.Thc aorw ol tbd powd (qu,lityt .nd rfi. .mur of $pDon t9 d mNrq(qutu yt rculd d.mim rh. ttp. 6f rct. rhd. g6up3 pt.y d rlc des,on @kinepm6s | rce trio dhv. po$. tirn rh.ir oymdhip ot rft. rcsoure. (qonohicor.drutshrN.) d. trk.ty @ pLy d. ble of deilron-makins .jire. $hitc tho&wm$ p6E N b!€d o t rc siz or r[cir foUohg n mE rik ty b iqdion s

Th@ sho h.vc po*e, ir lh. qMtir.tjv. lcN Sd ro b.inflmc6oaddn,.n<

b Pltrq, d*6'oo,md.ng is LL.ty to b. ondlcGd !r & .&ly s6gE by on. o,mF sfld gbup€ (brnotu. Eibal chEh, dc.). flre grouF! no, onl, Fovid.tdd6 td c rho repB{r.d in r!. civit ed frliGyl"!:!i:Ti:.e A::.1uy b.sG @ nod.mE. rb. dommur siir s,oup d gblpr

mot 18 powe! $hen n@ groups cndg.. Thw, $.bekgtuud or UF mnbd of th. crvil ad mirir,ryb'@uture jn *b;r i3 no* Prtlfu hr chdg. @Niddbty ovd rh. ,4.

IlE ddision-inucrcem !c omcirlly rspoNiblc tu n he! lh. pl&ni,g ,orcrecubd or eononic p.hcie &d prcsnm Tb.], d. ,mpdrrl. how;vd, d,6.o.y pmrdc polbcd ed amo6i! ln& b.lreD ddBjotr ula .nd vhd tu, b.d*ib.d d dc tarscr popuhbo rn noit mizjls 5cidj6, grelpr mrc fiom r|i.d.cBre.-dlumcdg ro rh. de&on_rolfg e.. tn prbsbn nsch.rr-md6hdll!, ubs brofsDnik, od son. aenbeB of!h. middt. clssesJoincd$ed.cision-mlrcs aiid baving iDctioned s indll4a otd..irioN.

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Mr, Khdid KhabouL Exccltive prsid.niMr. Ssleb A. S. H,sub.b. Pocu@cnl Md,ae!

Th. lndnshl.l C|lt6.r Jub.[.nd y.trbuThc rwin uduiilt!r[6 ot Jubtut ud yhbu @ @mddcd s 6hcgrc arcs Iorbyl]lll,{fub mdsr'6:Jd oagy inr.N,v. prin ry ,ndusFie. Th.v wdc r.r rp ro.Br. ur.Lrarion of de Kingdom\ ns@t Eou(s *rh lwitu @n;c.nrrh4 As.xpa-led. rhc pntuD Ind$be drar we.sbbhsh.d re$lrcd in rh.cldopmtrr or I sf,B of snd.ry dd do\rrrfu ,ndshe rt4 e lintcd ropnd,ry rdrh4 lbtuu3h rh. Ee of rhctr plrdrctl s cw rur.rid md d Md.,yr(d3rxr

" nodu(on oI fi6. r,cron.s i5 urs.r.d ro md 5_5 pmd, of wdtl

D.valoDmot of b€sic hdsrie in Jublil ed y&bu tu th. GD.sibirig of SABIC

Ctdiod ollho r$o mdBhal Lreq otJ"ba,. bd yebu I coNdded rcal ,n rm

Pr-l** -ry{l:*!. rhe 6* or Durus.ror or rpt.Mndon rdd.v.ropmmt ot lne Tvo c{iq b ud.tutfl by rh. Royal com$on to, Jubeld! Yeb wh'ch nB qhbli.ben s p.r Roydt Dd* No [r75 in Il95 (ry5) bPu M ,mpr.nor lb. d..d.d in6*h.tuE

Th. luba.l 'ndah.. crry 6veE m ,co of tOI6 eqlm kh ud 16 poputrtion sa

r:lT.y ': T ir'o*:11-g:*.ld by rh. md of r.24l25 (2004,. r, 6 aviss.dur Dy he dd ot t410 (20 | 0) rbe crty wrl a@Dood.k 2a0 lhousd iDblbrurrs:

Ar rhe end of t42d4) rl004r, Jubai tusnatcny hd bfrone rod, b a..onno&r.mE 06,c. rdond4 srl suppon idwm.s. var ea of ttud s.r. t.v.ta4 filt.d-

In ed ohplct d. Ilcidou.t qu!tuR previdcd w,rh E-rqtiout tiriLrd yh6kb[$.d Iq.rdoyd Md mr|.6 Mmvd. l4,Ol I Biddb.l uts h.v. bmbu i. or trhr.h rbour3.767 houbg uiB hive ded 6Drhc.ed by th. Dnv,kqror.

In ordq b- pFvd. $. ciiy wifi *li{uffic,ncy f!.roE. pd(ulrty in w.rd,nGsry nm bE ban dt@r.d b bcI!4 iobt €paory ol rh. qi6dBdilarbn plelr lo 238 tboElld cub,c mds Dq &y. oFnr.d b rt. RoydCom$ioD od th. Srtin Warn Convhrcn CoDoEion. The t.nS$;f hc ;nwotq nclwork t mrtly 366 hn, rnd the cspacity of *eBg. Md indutrirlvNrcwd.r ndwork ir I32,0m cubic nc16 p€r d.y_ This inolud4 rh. indufidwa@dcr ltEt@r plar xd s.w.dgc [ah. pter wilh cqeiti6 of 60,000cubrc @Ln F day .!d ?2,000 dbic n ld pa dly Gpetircly. Th. tmsth of rh.6ewage nctwork @h.d 864 tn.

TteRoy.l^Cl)'rmsro hB isEl.d u alcrdory neort w,rh , t.nglh of t?to k .u! * 4e t |:jffi pDvrm.) 6 GDoEible fo, pow suppt 6 A,yscm of6O,00OGr.ph& qrhtug. IiB hrh a lohl tdsrh of J36 kn h6 abo ben @qtd.d ,nd24,246 klcphom lDe!

^m luMrt) in oFrlon. Infr6Ntu hE bd comptcr.d

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W'd Rsp.ct b prcviiion of re.dsiry he,ln ce b rhe populition of lhc ciry,mm.or aulocr hNe btn eEblLhcd inctudhg rso bosp,b\ 4 dsp.lrse, d;dcrn6. Md I Dnor4 ndlh (e 614, sbcb e now b op.nrion. Fu,lbmoE,{ mos{E a wcl s | 5 FndlyqngElrtion mosque h.v. b6 @lllillllMwirhin ft. conkrl or hinpowd dev.toph{r ud liDt Se or educruon ud h,tuns$$ lh. rcquEmftr ol md@d d.v.topror nlnbd ofsd.nE, Irad€ rndsFdule,i-t& lbdatsi.l coucsc ofJubail hs l@hcd oboul t935 hy (hc dd ofl421n5 Q@4\.

FdhmoE, ' _qde

vdrry of (hotr tor boye dd gnk d. ope! ng n -tud,ry I Imaqgmnr, ry pnmt, I I inrmcdjaE, / soDdiry schook and Mo scboot! tor

Mtu, indMid invehdt3 h.ve b€c. !ftldb!@: 19 bsic idurilt cotr ptd6, 2ll*:"d",y..9:!:s--Il9-tl] *re.l sd risn nd6ri6,r,ublir b.cM. o;mroarb' tn.-fld or-1.24lx (2004). All ot $cm ic cap,hr-imen,ve ed it is dpi*d inaroy r 4ru (/u I u) b6e udEfjB q pbvi& lb.d | 07 thollsd lw pb6. Cllmdy,|n.y urrr mMJ ss shjch *4 bcins ned-up *irtod &, md! 'fu. Tficg6 wd coDrne b b. fitizd 6 tu.t ud s a prinury npur for pEdlrioD of r..t,dmjh. Dtar( dd hnrlheE tndude a, Jubail ind@rrid cily coutd be d,vid.drnb Me c.exonee s tdloqs.

. ?1i: ,!.9ry!1., rh6. irdBnis @ ddat r.n b) sAarc Md sauDl/l.lrN!u. Nddh ba( uddElat pldts hrvc dHdy bh oopkEd ,nd el'llfuriy m. opfarion. In &tdir.on. 2 ptujs rE uds conlruod, od Bprol4ts e in rhe stl8. of d.rjgo ud prmhc.

. Seldrr hdund6: Th6e i.duslrid e Btrbtijn d by dc Fivic ae1or sd$.y d.!ad on prcduca of lh. b6ic ,rd6ni6. c\m y 2l Dtd6 e inota ioo, I p6jel is urr* .dltucrion dd m|n6 ? pbjdlr @ in dclign md

. Suomn .pd Lllht Indurriq: The DtoB prlduc rurcrhls wbrb m nccd.dhy ollq irdudie d by boB'.3 pqaE drilg 6lfud sbg. or forop.r.tid dd uintmtuce .c$vnia, rt* re 6Lbli!h.d {d orrd by rbcpriv . s.fu Omnrl', riq. r. lll ptors in opdnon d lud,t. 26 p,;jdundd enstsulron .nd orhd 26 proJccb In sirdy md plMnS sbg..

PId fd lta otuction olYdbn tndNrid City md i|! lFdd 6irt nti.l a&itiri6h.v. h€ odpldld on s!uof 803qleloBy l{2425 (2oo4), rn Fpotdjotrof rh. ory @cicd 85.979

'n!abir.nB. rr 6 dvi$gcd thar by rle

'@ r4lo (2olo).

6. ciry wiu hav. ! populolioD ol t50 dousd. Cd6Eudim wdk to, ft. ini6l.l;.'ly h4 b*n complcl.d to sommodllc th. bsic md @nd.ry indNlri.!,

By thc md or r42,t2t (2004). t2,7J9 ho6,ng mir3 b.vc ben 6nptd.d ft. ciyba r dohs. c.p&'ty or )80 doBlld cubic elcd ot salq tor dntunc uditrdurid p(Doss: 5a7 k n ol we disriburd eNo'l(; 27 rhousnd cubic ;d6pd dry of sewdla. rrqlrn.nt ptdri 24 tioudd cubic nd6 pa dly of jDdlstrirtw4rcwold tEatn dr planr 518lmofwige neFoA. Th. crpriry ot mling "Mrpbrb mftaed b 460 lho6$d .Lbr mdm ps bour ln dditior\ ctdia.ygdcEron car&rt 4. ro 45 t Mw sd ttc ldgrh of.larici., djsriburid n.sort

Ar rirD.n wid J.2-km Muly md 4000 squ. m6 o( tu.Is dd t (ti!6 h6sreb€ comprcrcd. runhm@j ' rcoo neNort of 435 tm b6 atso ben t.id.

Tn. IndGEis d Yeb! iDdurml c'ty @ djsdd do r[E ot son6.

. a$h hdl!ti6: Th4 ,ndeiB e uddrtq by SABIC ud SAuDtAMMCO. lO b6ic indurial pt.nrs havc bm csrlbli$.d ehic[ e Dow jn

. SFo4rry ldu!.rls: Tb6e iDdud6 c FebtifiGd by ltc pnve !ab,.ndd.pcod oD rh. psducB ofb6sic udBri6 lt@ e I I phrb D opa!ri6.

. Su!@.-t lrdulrrtd: Th@ plmlr prcdlce mtqi.r, wllion @ n .dcd by oihoindusie o rt. ho@$s ffir dunng co@ron ,bso r tor op.nri;n dd

Tb.e. pLsb e arbhrhed dd opmad by rhc privar.$6r. Cllltrtly, u\c m l9 Dt rB in Mhon

Itrdu .Ll ltd.lopr.li tiI.E tr rt. Xtn.doDOkrlh. pd l[F. da.de, d.Ktopm. p6t dd..vor suc..cd.d m. !!h ins01ft be ot pomiqing hdei,t d.v.lopDonr h rb. Kinrdon Tb. bq hr $;e@dry'ry ru nslry lhd hdude sev.El ru(.$tu1 p.@hcmi..L bdiq miningooor hoshs *hrch bost a6d qu.liry 4d @@ew. DEd(ts $,1 hrv. nudeaNdcnbl. @.aibudon b ltl@c pr.druon. ov6tets. &d o,rd.l dFrll'

Meag.mnt ed ttrvelopmot of rh* indutj6 @ undsirton b, tbE gioiudond colporrid, !.ndy lne S.udi Bsic rdudiq CorDddon (S,qBrq; $.:oud ,1e?.9it.co?or.tion (sudi

^RAi/rcol ed n sludi Aab@ Miliry

Corpo€l'on (I',la .dd) All rh6e corpoErion. 4oy a s*bte p.sdon in rh. ddionci@Dody,

'n l.1fu ot Drodmtio0 votume. rhe qoltd repu$ion of d.n qmhryprcdEb od tb. advecd t*.1 ot rr. kchIotos, ,r.y sa b 6.r, c@rd oi d6:rio66 se I tu dB|lrdirs exmptc of s@ of rhe dfvctopMt ds {du. porici6 th.t pac w fi m M b ,.c.tdr. udeid dd.toD[mr krhin rh.ftuMrk ot rh. rourry s rud.g' b J,vhiry prcdlcron bsc md ro cduc.cxmce 0n cru& oii plldudjon ed d@tu

S.udi Anbl.D Bsi. t!d!.Hd Corpor.rrotr €AaIC)SABIC*senblis[.dm t]9ortoT6Jwi(hrptudupspl6tofSR tObru6q]hi.b

SR 15 brllD'. ot *n,cb 70 p4.nr r oM.d b, 6. Saud.8ovffint sd 30 pa6r hy Siudi ed CCC tuu[ie citizs, SABIC,S apjnlhs ben ni*4 s n mndy sbDdr.t SR 15 bilio! In addnioA SABIC ei!;iESR 7.s bilioD c sraruiory lffi, SR l_j 6i im $ c;h ud reh@lo6/r.&flB, SR I1.9 6illion 6 8en@l rsd.! dd SR 13.2 bilid of rllind cdinE:The qro$v.

'nd6Er.t@noD pbgEm uds-blo b, SAatC R coBdad s rnildo.. in rb. Kredon! Ddreirl d.Etopnoi prGE epedly h rhc ha3ic,oov$hr lnd suppon whi.fi ublr. rhc hrd@.rboN mcr.I] Frrcuhrly rh.

oomi ea. wrh r in to ruimiz lh. v,luc add.4 of ih* mou@r

B, r!. end of t424l?5 t2@41. SAATC @mrtcEd opmriob of 16 *o,td{ts,Ddrh.l onpdie in ,ubrl ..d ydbq

'd ot *bjcb G Jo,n( vonG *irtrmmbonar mmprid sNh a S[eU. Eironl Mob,t. MjalbBb Chmc.t.r., *itnrcrud pduchon orabolt 42.c mnlion m.hc 6nr ofb6rc cb.niqh,,nr.rn diarchhcd&,letuldeN, m.bts ud potyn.u. ftd.p,od(ts we tuuretur.d w,rho

:|:_:*--::"'I ..f rbr.fo[o*h8 anpe6. $udr rrod .nd ser conpoy1L3*^?'; yudr_ Mcrhhor coq&y GxR^zr)i Jub.il Fqrl46 c.nisy

Y&bu P.r(idiatr Cohpey ay^N?6.I): Jub.it

Conwny KEMYAIi Siudi P.t*hmob CorpMy (SADAR: NitjoD,l Mcrhuolumpoy lEN srNA)i ^Bb'il

pclrEhdiqtr Corroey (PETROx!|v{yA):*h^pcr*bmicab compey (SHARe). srudi Adbiu Fcnrri2$ cornpet(5sI u). Nalonal Ch.miol Fdihzer Compey rlaN AL BA\TAU: Nad;n;Pra5t6-conDdy (IBN IiAyyANli N ioDat bdutrjd ce Conp;y (cAS),s.uo c@p..n p.tsmnhcd comFsy 0BN zAIR)i Anba sy hcrc Fib.rcomp^6y {lNB RUSHD), &d rbn HrD,M plahc Cotrpry (IAyb crd s^!tcruo aoeh.Dcab. Jubsil unikd p.rolhmak conDj, &NtrED).

Tobl l@powd .rDploy.d by SAAIC ed ill ,mldd @npoj6 by thc dd of142415 (200it) @hcd t6 l}ollsd of yhjch S.udi uro.rls '@ur fq a2 |l.tql

11 q.. &:yL^"| Ddu n.r Md m,*{ins @p.Erro. pdicll.jly elln cccIshaE i1!h. Blbrm AtmMconioy {ALBA)

:lj, T .,1j F.-l 11" ,l_ adf Arhinlm Ro ins Mi co,leey (cAriico) 6*.r 5 zo.u psqr ot ln. N.lionrt Cl,m6& TMponins Coettuy. tr,tso ow

ode lhin of fi. cndl Pcrebencab Inde6 Compdy (CptC), dd owB 2<pdcd sbe in Eoerg), cornpoy for Jubqit ud ymbu *hict $6fi6 fl6By &dw.t6 rr rwo 'ndult

iil .irie. ta. Mour of sAllc adl6 ot Dddtdioh roE@pe,!@hcd 6 mllon-mtrlc bn., whilb onpriss of beiL rbmiqb;InleffEd,aGri Dolvdlefi n s, PVC udD6lv.su.

SABIC i. e*ina hed ro minbi" "o-* r,* *,t,o.r*.*,n m@ rbd IOOc@tsle @ad 6. *ald. SAttC aLo @ntiM ro 3ct &tCitiotut oDporbnjriB

ovcGes thdr 6cy tu *nh its 6D eriviricr,

By tt dd !i t42,t45 (2004), SABrC @k€{t lod eons lh. wo d,s brgdlpcrreh.mcd @r4aid lc produlon homEd 7 p.ear of *oaa p.rel-il*prcowon. ss( .rpon! kGLbird! of iB prcduclon, wtucb @hcd 42.o rFlrjc@-Dc. SAAIC conrrs of $ c.gl( brrhes u6: Brtic ch.mi(rk: mklmdhr.!,poD okfin !i PVC md potyqrn, tdi ia! od dut! Its dporr! rccch ro mor. thtu100 @ubB-of rhe sortd s ro ows: 40 p.wl b Ari4 28 p.nc to ltudd]c E$qz! p.'€r b rdp. dd r0 rMr b orhs 6u6eSrrdl Adbl.n Oit Compuy (SAUDI ARAMCO)on Safar 4, 1352, (May 29. 1933), thc Saudi AEliu cotudt ligned r. bdicmc46n asrctod wnh Stad'd Ol Codrp.ny of c.troni. (s-ocAt ). noekDk a {CH-E\IRO!r, dd rt. AnbiD Affiitu O,t Coqmy (ARIMCO) wslm.d in.r3t2 0atJ) !o op@k rh. mnc?sion dg. tn Dat fl973), rhe sABIc i,wor*inC hmd ro natroin ttuBdom lcqri,ed a 25 ,erenr $uity inbd meqru r o[ dd 3d hdwtry 6s.ts, *hi(b m@.d to 60 p4.nr in | \aa ( I97a)ed b 100 FE.nr in l40O ( 1980).

O.4 Ribf lr rao9 rylvcqbr tJ, 1938r. Rorrt DeF No. \4,8 ws i$ucd.tppbimg romtren ot lbc Srud, Amb.s Oit Compsy TSAUDI ARAMCOT 6asmc lMcg.nrtod opcFlrdd BpoEibitifie Roy.t DmNo M,t *s su.dl4l4 (r!lt t. tqal), 3ud@ng s d€isio by rb. Co@t otMh$4 b n6g. 6b |n. Conrpany, r of lh. KiDSdomt oit Etneie {dp.bokf producls (llrhbdon

'nd tuk.rrng ta.it[Gs. W,rh ih.s. &lded duricq

bccam ,6p.nsibt. for mod ot 6c KinAdon,. pcfttchlflli T! o9-yl" **_oo*. p.rorut sh{. h ax do;Lic ro;, Dmr*r:',.:y:j,il" ":*i'h.*: ryT. 'r.n

rdEd io sAUDr rreMco * po(^o6d d Mrnr3d_s d.c6jd No 29. diEd 22 S.fs l4l? Uuty 8, r 99O In r 42Oi2 |

InrmaloMri, Inllgd.d dd u0rou.@mpoy In lhc fi.tdofflc,s).

1q!.1R1y:o aNntoB d hsic pr e of rhc M@ @oony, *hEhqhDuB rgtohtr y rd intue otCDp,rd gddrriod of publr ffiu {d:ITy :lllii. rry @mpmr is mNidoed s ! vtir pivot oiadvued opftrionud hMas.mnl sylltu i4d e .teft or a bro.d tinkasc \ h $e ;vs(cdT-1* -: j" oc aub6edd su of oit pibd(doD ud apo( od El.r.ddl)llfuh hdBtr'6 6 w.ll a lh. advlncd r€hnoto6, Equ@EnB.

In 142425 r2OO!), SatDI ARAITCO ws EDonrbt. tm dfugnS c0 o,t ficldsurougholr rhc Kqgdom IncludDs lt. Rd So .E MoMva, 6v.; fields bd .

ga i.ld ir lh. Plnirioned Nolrat Zonc & udcr de dponsibitiry ot oin6 ojlconpanB while thcir producrion is shorcd bctw.cn tlE Kingdm 6d Kuwd!. Thcp6vd.\tu6nh ctud. oit Ecfr6 in ur. fi.tdt l:)ha€d by SAUDI A.R]\Mm,nd@ oh @q.rrq 'murcd ro 26{.3 br rofi berL ir t42rr25 ttOO4). Tt6.Iffi4 bNtituk rbd o qqs otrh. trorlot brl '!@€ mdr18 srudr AFbraoe coxay Mb $. ttrget o 's4 In $c rorld. Funh.fuq rsdB ot ss.DcludlB NmEr.d tdrslv.d ed op gb) Md Dotrenr.d g4 tohtcd 2at.4hton errrrd,abic t4t by 6..nd of I124A5 (2qNr, rhR6y dntrng ri.N4aom d re rounn larget rn rm of 3@ EsB.

DutrS rbr p.nod 1,t09 I t 939) Md t42 t 4, t2@t L sa tjDt A&{lv.o.! dplmrioneflbB ehieved succss in rh. Cahl, Wesrn dd .{onhh pbtuqt $bn 0EBr ol ndd q djscovs.d u Hub m in 1409. fouowcd by, oMbq ot oit udas ,nkr b tb. c.nud Ptuhe r t410. shicb €nhitr vqy '*d Npcr tigbr @d.oil. r!n[n dl dlcodiB wlc md. m t4rdr7 (t99O !r Ueylah.'wi$; cap otr$ocratcd BE ar Sbjb at. Abu Sbid.d bd Vutcyh. tn $. Eslm provibe, rcn-asocrlrd sar ga ud @Dd.NG w.,. dsv.r.d in | 4l&t 5 I r99{) D rh. pFKbutrJouf lts.mir in Hrwiyd aa ot Chl*d 6old s wcu d 3wd lon-.ssnr.dgd in rh. Urhnurya! aa of lbe Chlwtu field ,n Jouf d@o/. Shadrn fi.td ofsw..tnon-ssoci.t.d ss w4 dMveEd in l4l9roil999).

Thr fidr mi.Nmd.d gs disv?.y ws nE& m t4ll (lc{\) whm SAUXIaxM( o drsvdcd 96 on de Rqr S.a co6ot pt&n, berv..n Unnuiaid At-W h.rnd dlo.diMvcEd oilD Mdyb tuo d 6c nonhcm pd oflhe Ra So @4r. iy@ d[6. gs sd md.Drc mE dievd.d in rb. s.ft |6 t |4lI(t99|),ud9lmtory ell iD Al-Joufbsin B!.lci! de.xisr.ncc ofn.lunt g6, whft SAuDrAMMCO Ealiz.d 3uc$ in i|! fNt cxploElion .fon in th. nonn:eql.h r.sion,

T1E qpldtim pFglm is d6ignd ro l@k fr oth.. tud6 of Frmjln oil ddno0-asialed.sn m bc vrcjniry of th. .rBug oir ed ss f& b;. A! pd of ilredd.3y.to ebl.\. mft prcfirable podufton, SAt Dt ARAn .O sgn,fimtlyhrcae.d l-D *ihjc sb.ymg u t4l2 (ta92) b roE ctfdv.ly d.tiEr. rh;

B, thc-.nd,of t424l25 t2OO4r, SAUDj AR]\I,CO ws oDrding n@ly tj.20oip€hn6. Tb. Comp!.y @mddd ! vd, @rv.

8na or op!h6 to trituDon tude orl. 96. nlNDl s6 |,qu,& (NcL), coDd.$aresm r.rDed podu.lr Tbe dd. oL p,pdm. ryrh tuporl, five lTs ot crud. o,lmm o. nd@ rMtcn in -nc

su rd, nodtd od 6hl pmdad8 m b rh.phE ror prMns 'd tnh ror aDod vi, rh. s potu;f l",nr;"h -d Rsco6r hd ydbu on lb. w.dd coad. Tt. rjtun itbdrn$oir dd. oil ro domsrL cnncna Th. Mab cs sysi.n @;i,B of !

:ei6:!r:.n@ry ered@ ril h,$d 5u se b udtu.yx\ sb.dgm sd*he sdir N lmv.d md ss ir lho d.tiv.r.d io rctl

As pln of ib sbucs, b rcdue d.!ad.ne oo rbc Fodu.d qudb€ of .ssilGdg6 do ro r.l grc"mg domd. d.tMd for gs, SAUD, ARAMCO s

implmatrg dbrkB d@ ro b6osr iL! m.-seill.d gs prcdunon fioust ap6J(r stucn Dvoke @mhruon of rso sat Drcc6n3 ptdb od .bou 2oo0K,rcm.cft,or prptrre *hrch m Do* rn the dei!, &d @Nturion phed Ir BMudp.red lhll rrs poj4r w, inc@. rhe rube clprcity or lhc Mlc cssyt.m by abou 3e0o mittid 3todrd obr f..t pq dry (MSCirDr.

In I4l1 l4l.lt99Jr SjUDI AXIMCO conptcrd M ,mpo^m, Foj.ct ro rrftde@ c+&,ry !r s. 1.200-}m loo3 E6/W6r @d. oit rp.h. fiom j..2 MBD b a|urmm or 5 MAD. ThL pFelin. ryncm urk Abqlq ir esh pbvie kitYMbuo$.R.dSs@er,B, t4t6/t417 ilqs6) BmCs ptatlBs.ivingotrdprcc* ng arpb\ iroEIy 100 MqCFD ofsou C6 troh fie.ds tdokd D ri. loLrh, roDqde toer gn supplie ro Jubd itrduhsl dry on $. Anbru Cut(@di Thb EptE.@ by b. @npt.ron orr tj7-bn tong dd,O0 MSCfD pjFbr. for rb. $uSs,coquJlc hom Abqi,q b am aa pthr h t4l8/14t9 (t998t, r[e p.trdMpMucr tuha$m pipctin. fiom

'n. Eskm prcvjnc. ro tuyodh *o niugmrer,w,rh a linl ro Al.Hog {d m$s b e4sjm coveriru o ro6t d$!@ ot 8rltiloffi

SAUDI ARAMCo opfllr.6 fiv. don.drc Ffinei.s ar ,endd, Rabrgn, ymhqRiy.db md Rs Te@ m rddtioo b rh. KDedomt sb@ h Jublt SASiE Ffin.ry:io ITh sAl,{RII EE4y hr} . @mbiocd pEddioo @paciry of 2 05 MBpdio_y:1y]Ie No M/1, orMuh,mm r L r4l4 Udy L lo3, nmr.rEd lo SA|DIAqM( u,hc Esponsibiliiy olopedllng yedu. Joddat &d &y!{b r.nncrjB aldn. r.tud D.hreM pod(r dishhubon n.rwrt wbcb ld6 niltioE ot@Bu]rm.r@ (hc Kingdon S UDI AXTMCO ah. bdm GpoBibh raop.6nna b. ffi rmimb .t 1ue. R bE6, Dub, md ,.d.bl, ; iddiroo royuoJ oD rc.lr.d sea ro.r( snd R,s tmm Md lu,rlrmon rhc Cu.r cosr. TteseGmmk bdd and rerrc

-dd. ort, \OL md rfin d ptutcuh prcducB. A! ps rhe

:Tl:,:::1 ::*131:g_rtar sk. in romcvonE Ero;6 D ir. Kj;g{,onW.U d9 llutdcd TO SAUDI AI{AMCO. Tb6' R'DftI E SAUDI A.RAi'@voon K.rncry {saMRfF) y&bu. sAljDl AMMCO Sh.ltR.In.., {sAsREF)dt Jubail, in oddirion ro Rlhigh rcfrnary.

l-':_119 :Tpl* *: r.1-r AMMco hs t'r6 tuI p.s@n or tubBni::11"1-y '".g* r.

14 15 oun. r. r{5,. rn rarT r ree6r, ud by r d.cri;no, rm (ohoror Mhds. sALiDt AMMco,cquird perronint scr,l In rwo

l.ll:l_1T ,y:1"y dr bl@riB d r.d{hn: vir: ptunin Lubicdjna oirfrlll! *.p-l rr"x"D -d pcmdjn Llbnonns o,l conwly {pc!oiub.).,'_::-il yt:.l.:..: r:"dr owr.d nrr Erxon vob,r. rhis mnprd.d rr.rsSftnon or ritol Kingdom r peuot.umr.fning mddEflburion t&,liri6.s lcu sreaotu . Jod+mhre dohqc Efinin8 llrtE€B ,nio SAUDI AXnMCO lnra20/21 ()000), d. F.ddbn of uiJod.d g&tiD. rbrted for thc [d rim. ro hc

rn \hs d |!. lignintue ofoi. ftfiriDS mdbEy in dre Krgdo(, bricf prent. 6h.tuc rboul dcb dooetic FnD.ry.

' R^ T$ rn.R.fn.ry: ft. tufin.r, sen on lrrcm u 1360 rlo4l) wr$ ,csp&'N or 10,000 BPD ot fl& oit. *hile thc pDodrcn (,p,crty cwtritv

!6!& ar 325,000 BPD in .drilion io 2@ rhoed b6rcr!.f @nd6s{6,

fte ne* urc wbic'r caft s p.d of de Etindy *pM!jo, pm,.d war dButu r r4l3 oc98) lh€rchy &b$Ds rh. min obj*tN. of lhl EnndyutgEd., ic oN€rtilg ln€ e6ndy ton a hydrHti@ing f4iliq inio

'rm.v6'oD fmility for ir@ed p@dudm fl.ribiti9 in roB of 8sotin eddi*l outpu 6 v.I e podd qurlity, 0nd coGeqnally in@i.d nmciircrms of rlc Eaoin8 poc4!cs.

. J.ddo! R.l!:":1!j' Eiiay sd!onsftu jD lrss(re68).srbiprcd@o!qpeiryot12,000 BPD of ddc ort. h hdw.Dt s.vfrtqpu$oD pceses bb.ost prod@lion ro i$ cuffit cQooity of34,OOO B?D.

. W !:ry2' prc&clo mmocd d D94 {le?4) wirh . o!@,ry orl5-0m BPD Ine (,in.ry hs ud.rgd. sdt dp@ion ph4. d;bybriasins rh.lmdltuon opeiry b lr.OOO BpD. Ttc;efin..y;buru ir! @&oil ton tlc Eat-Wan PiFlina

. y.nbu R.fi'.ty: Drtdv\6 sod.d ,n l40r (1983'. rB prcdlcaod c.p.c,ty 6215.0008PD.

. Rabist' R41'.ry: r\c t{Ecty wmr m sr@ iI r4ro (|989) s i roinchMr nc rorogn prrlnsr 50 ps.dr shrE wd acquiFn D t4 t 6 99i) tre pbdmdono.peity is 370,000 B!D.

Th. Don6ttc Jotlwdarr. Retu rh.

. SALTDI ARAMCO Nd EuoD,/Vobit R.fiD.r, Comp!try Lrd. TSAMREF):r rc rMery, tomrcd !i yMbu on ft R.d Sa c@( E . 5CV50 J@lvcnhe wittAtDI AxnMco dd EuoD4rob,t, rd hd onffic.d oFilrid in t4oi{rrej Mo . producnon qpdry ot 160,000 BpD $nr hs ben 6tu d b ,Bchd kkt or 400.000 BpD. SAMREF F5r6 p.tut.rn prcdud pntut) Cor

. S.AlrDl TR MCO/Si.I R.fb.ry Cooprry (SASREF): Thc ,€tD.ry. l@r€dAJ,bnn cutf oar. is a 50/50 ionlv.,hm wir Sh. , md

comsc€d-op.rahN m r40J 98rr siih e D,odkdd c,p&ity of lo5,0m:.y : .1"

. D|!"uB fthlcd p.rDleM plbd4 sd cn Djc,t pt jB,r..dstrk pntuity for !al. d mrcm.uonrl tutd

. llP.l^jl^Mc_g Lubricr bs o R.'|rrtrs co (L!bar: sArrDrAl<sr u ha r 70 p.ed mt r Lub.rf wbit. Eqon/Mobit ow . 30Flld lb4. This johr-vah@ ws dblirh.d D t394 (tt4, md @moc.drB rdrn lub. oit in 1393. A sdd tub. oil reEn.ry. tocar.d ( yanbu,oomeno.d opdariaft in 1419,20 ( 1999).

I-!b.E_f '@ive

f!.1oil ion SAUDI AxAMm,s Jcdd.h ed y&6u Efndiqed Fitrd I into wh b knom 6 bse ort!, which G.tporlcd. ptulub. udos.r rcmpuF r |no Kingdom bl.nd suh ort, nb ru@r oit prcdkb. Tt.cotuDd ope'ry of borh E[ftne s a.2 niltjoD b.fttt po yd,. q@!ry

sdioient to covq tbe local d.n&d ond expon lnc r6t b d. region.l tutcts.. il"-tlt-cg !_1!l-g$ o! co. (P.hhh.): n. @DF'y w6udMd

'n t 3$ r I e6E) ed bE afhdiB ir ,.ddrh. tuyrd[ ud Jub.it. led&h,no Ky.d Rnnse e. joi ly osned bt SAUDT AR-{MCO ord euoo^tobr!qn8 /t ps(nt,ed 29 p.rsr Epdiv.ty. tl prod@ mb oit phd@

l:o]ll-ts iT^b'.idry e'&r ft'r r ior.t €Fciry of 6.5 nitLd h6Eb pa yE.n rur* | ru prod(r (dd rhc uld.nurk "pftmin o,t!, biud @; and ir!p'@cts aE xkd by 25 Fhl of SaJdr Eker p.htub. btd& dd prckpru!6 ror rbrd-?'ny €npu6, ttl prod4 e Nra&d in mc d; ll6hb6 dd ln. 6!Doy hs btcndins .nd li.4i.g agEm.nrs alrrrt

. SAIIDIAi/rMCO GurWdk Co,: This@mpoy M.lbbLsbed h pebrury,d op€Elod oa lh. KitrSdoot sh& in l[Gsun.red @ ot lb. p.nnion€d anc nonhw6t ot rb. AEbh cutt

D&trlburim: fte $le .f SAUDI AxaMCO 6oh r.fDd prcdkE d rhc@@uc mra lu.b.d 434 5 mi im bmts ud 51.2 mj ionFydoi tudc

SAUDI ATAMCO ow 20 mi" drsb rion poinrs D.ddilrm b 17J.r tu.tD8urE rrs. p.urr ed uiB spDty cfin.d Fldur, to ,6. don*ic Id4 an r;nun tusporMbn !@.i s w.u a b privac, pubti. &d indlsfirl seron_

l**!!1. om':rlinr voor.: s,nc. th. eEbtrsh4.nr of s^rr jj AxAMco ir tao,jn obje$6 bs bar b ill.Jw cud. oir sllamuSn fhrbodloi v4tE, ro pnvide grar.r mkd ed pri*lhbitiry. sdo E n4^rddrdd ncom for the Kmsdor llom rctirjns sd rok dng @e;tiorr@rcd s d ammm bo m* barmc ptu in rhe Colowhs firc intmboMr

Ptun Co-tpotadon: tn-t4r4n5 I ar4). S^L DI AJrArm ,cqlu.d , 40 p€reDr:lllty hk='ln

're P.bn c.rponrd *hich B ft. phitjppD. N.uond o,lampdy (PNoc),_rhc t.red 6mpey ro, EfDjn€ cdd. ;,r .d dsbibutrls

:.j"Mj1"! ' pplipD,I p.ron rctud 40 perem of rhe omp!ry.3 N.6m orkd lnc Enrniu 20 pe6rro, pubtic tubsriptron. b t4i84'a (le9s),

iT!^:"cydtrdd^, ercld ,t , 4pE:d.d r6.roinr- vatoF E6ms op4rry 6!hI N,@ bpd ro I 30.000 bpd. tn I,{ | 9/20 I | 9cct, jt !dd.d ! conbtrbE cbd}\ricR.romr uit /cCR) Md mkEd rh. p.tuchmcd rukd wi6 .hc @hpt;tio,or r hxd drmrbJte b.E€. wr. SAUDI ARA 4CO h6 q emibEDr @Pbvc s pdoi ot L\c Ffin.ry's .rud. oit rlllltl]bk(:!:,^E:'.r,t"., Moriva $brpisc h r roinlvdr@ o.e.cn s{uDrI 150 p.reru, ind I h olmMg oD rhe Cutf:Gr @ 4cm 6- | of fi. usA. ft. joinr v.nlw owN aou E6ndi6 *,rh !bl.l :.er,iy of 880.000 hd tr hs 50 sbng. md didibuion 6r.,s udIukE.b pbducts uwugh d,jmburrd hrs' tb b6t sslc. otfrobr tuclrHcncd 6()0 rhoMd bd.trdlv.

' S-Oil Cotpuetio,: ttr vtrh 2000, SMg yons O,t R.nnin8 ConpoJ, Lld.chss.n ib_!M. b S.O corFdron. SAUDr ^naMCO

.cq;,.d . j5 Fcd.*, i sT-s-I:"c q R{-s conpa,y Lrd m raet lbar itrrud.d tul(djDs43.6 ud a | 00,000 BpD RfDdy in lbc R.plbtic of sourb KoRe sy 1997 s-oi-lrnc@ed iB cftua capccrq b 525,000 BpD lbmueh D. oNfkrob ot sul} tuer ort turing ficitiy d ,B E6rdy in Os A.tdjron,l upgndB,@|re &d d.s pe4qB uill w.E drdtcd j, rbc r.rin.fy lhI dobt.d th.compMy b.rt r ne peuochen@t mter rhrc!8h rle prcdlcroo orpddytdoSAUDI AIAMCO-\a ! @mmd @ :uDpry 90 pqc;r of ihe r[;.r] i'qud.or

'!q@m.n.r. s4il 3uppL6 bBpon tu.t, to rhc rdoil scsMl ot tb.@cbc mrd oD a ulimwi& bais vi, 1,150 btud.d snie !buo6. Inl4lc20 (laq9l, SATDI AXaMCO p'lfur.s sbm u S-O wa, std ,utjngSAUDI AXAMCO rb. $1. EmnrnS ind@hat sheholdcr In lh. @nDmy. wirban!!l of 50.065 p€ent of ttc sh@ itu .ntid.d !o vor. d rh. ;tr;;yh

. Motot Ul E 116 ud-/vta Oit: b l4l6 ( 1996) SAUDr A!AMCo lcqun d , 50D.:6r she in l[c Cdt Etuins @dp.ny Moior o GI.[G) co;6 ud eeci.r.d ruAdng finn AvD Oit. e bdurrjal otlrllRot ed 'M.im oilco.mpuy. H.llas h4 t00,000 BpD fun-convGion ctin.ry ar Corjnrh, ,Oklomcrd *€r ofAfi.N. dd SAUDI AMMCO prcvid6 ir wjlh ir crudc oEqtr'Mftt . H.Uas sugpla Enr..t prodxr b Avin Ort whicb Et.!, ln.muc b. avrn br.nd lm.dFrghod crcc. vii6t0 rdire sdio! lr lbosupplra mmnc cnd i.r tu h ro major fttuileF h c,qe, sho ,n M sell lhe.pbdrLr d L\. tDtention l lMt r

. 1t-,1:HI..!aor,8 coip.n! (swEDt n E6,r,j rn r.{rs (ree7),f! ' RUid s 15 pd qt shft in SUMED "s rb,fqEd b sA uDr A^Alvcd

Th.,conp&y pbhdc! s chdpq.tr.ruuqe ro 6pod md. oit io rh. Euopan6e by rr$Ftus $bd4ual q@!d6 of crudc o r,onth. R.dss;u.Mrd'i.fu.e So rbroueh pip.|lne ot SUMED. r!. op@rdrl c.prc,ry of

b..mrdohrr Mrt.ritra .!d Inrpod.lo.: tr t42lr4 (2001), sAuDlMMr u @nrN.d to ud6rd. alt ot $. Krgdon\ ,nr.h.ronol et6 of E6n.dprcouBi NUL 4d sulJi!. ddudi4 ourpur 6om $. p4lonod Ntu@l zone. Ticshpdny poduc.d l0 I MB oi LpO. @NEnng of pbpde ud bLbe u zool b,bdorctc mdloDt FfEi6 !d t0/.5MBof gehi( i! 200j, &d ob6( 2.t ni jonmns or{rtu.,[ Mk cd rh. se. qusntjry ,n rh. pP,o6 ye, (tOO2). SodAMM( o m- r.l.d 8lJ er(3r q6dd4 of rc6n.d proddr lmouhne b 414 5 vBIn z@ m dbon to 51 2 mi ioD betsofcmd.6rl

b 142241 t20o2r, vssets ou.d by V. i tnrmronsl Mdnc Con!tuy LrmiEd,sn AXAMCO s rbsid'ary, hsponed on a\eag. r.s nthon bMch pcr day otr@ crud. ori lo mk6. V.tr a.so udpon d 29J dIiotr baftl! ot ,.frncdp@lm. 6y br..nd or llis ya, V.t c@ lo oh ! ULCrytf fi*! n addir,m io

:lcj.-ol lr:1y I'yo rlifuj r.hr3 nd ie lupponcd by ode_ Lr*h ch@Ed by vcr,

on kry^^tuBol sLndnrdr bars. ln l42tl22 l2OOl) SAUDI AR]AJi,CO obbnd,JU yw @tr€r. ror mrrog@t hd opeErim of shipl h 0 sl. 'llec rh.r

prol.cr! envnonedt asainll D.lutior.Ca G!rt€.ln! Pmlnb:

Fu.l C! .!d Nrtont C! Uqtridr: SAlrDt ARAMCO i! 6|md.d ro r!.prov$'oo fd d.FloDnd! of Bo.ied n$!rl g6 supptiB prcduced D $. B6rdrrcwce b!.ae o wrtt'dertimuon, ct{blc D.wcr godrjoD ud !o DtrovdcFEI Cs Md NCL ptu<tuc.d 60o utord Ss rlpponmdGElar dddoptEr od p.reh@c.l pioddion i, ir. indutE.l cjri6 ot.,;h.ilMd

,Yeb!. lid ,retd LPC for .rpon. ln pfteirg ntul EB, toxjc bydn!6$trh. !, rcm@ed ond @wdi.d lo yr.ld sjtu ior opod. G.ik! q@dri6ofpbp8ne tuLn. ed mMI gsollne _ $. @i, smpon@lr ot NcL _ftb.bsorErd bs.rr,l KiDgdotubs.d Fteb.nidl udei6 U! ltd vch. ro der.6dr s $rcugb .rpo( a p.l eh.miqh Alt qcs NGL @nbue io bc

Dud4 41940 ti9oo). propee prcdudon bbtd t2O8 mj ,6 barr.t4 butu.pductoD @!d 7o.t nittrd bafttr od Mur.t g@tD. prcducuon ,9.8 ni im

Thc mnplny ds€nm rh. KnSdomr Nt6rq Cd Sysrm iMCS), *bch hs ilrclpacrty bp@Mtt It0 nitm cubic trh{4.5 bdtd cubrc f4l}F&rofMoral cd T. M_cs @lld alm'cd sc frm olboE,nd ofilhoE i.r.r!,;dnon-uscdtcd ga lilm d..p fi.tds in rho ConDeyt soqhem !RMUs mmDo.ntr tnclud. n@ty 4l gs.drt seprEior ptdB, inctudrg rhe non.

in8 plbr!, Iou NGL firrtoorriz.nd f& rlb6 _ .lYbbu. ru ilm.n, Abqaiq &rd Rr Tuu _ ud lh. Ersl-wd NOL FFlinc. Th.l. 170 tjioncG O?6 mit.l prDllin.. whrch b€g'N d Sh.dgu so tw p,r,l t.t htn9:,*i*:::i...99ll'p'lb'svsr.m tD Ymbq hs

'c!p4,rv or 2e0.000 bpd ottreeo,. 6. compoy be8u lho contuhon of , ns 3cpl.€b3 prdi .nd Mi.rcd ff,tjri6 .r Hrwirln .E of rh. Chrw fcl{t. -Tb.

tbl4( E 6. Nr signitr@r dFsid otdc MCS,iM iE uccpdo .@ dq l jys ago. Tn. gs gar[6n3 pogM cltlmUy grlhR dd p@.s6 rb.Di 4.67D rrcn rtu@d dbtr tect pcr d.y of os*D'ed sd non.sscrri.d gs frm o,t &dg6 li.l&

'!d prodB th. tollowing pbducls:

. 2 c brtt'd cubc frr F dry pri@ y of tu.I gs (minty fttDe., Bed ror rh.Md .r.ckic po*.r g$duon ptd6. tr E atlo u!.d sree6o.k ind tirl tor SABIC F oleds Md olhs domBbc irdBhq in Lhe Esrm

. Pmdc t5l mithd cubic fa pd dly ot.rtft, uen s tcd.rck o, ikl forp.mcb.mrir 'ndurtn.!

or Jubail md ysbu

I Prdue 805,000 bdEb pa dly ofNotr prituily fr expo(

. Podec 4.600 rons p.r diy orsulftr ,ho for expon,

In l3Ao/r 190 (19?0r. only I I p€ffi r.r l'J b lion cubrc me|m of prcdued dhlnlBA^wx 4euvdy uriiz.4 rhe cr *s drhe einl*Fd d ,tar.d Si@ t4O4(ry4r. odry dt natunr gd pEdc.d hs b€ urihz.d. Supph.! olnd.'s,rcd

ga.Iron d.-KuF iomhor weE rappcd s or 1404 (t984) duc b dehnc rn lheprmufton-or gs.Ascidcd w.rh.tud. dt ud iro@d l.|smt denwd tor S6.,1T,ITT1:1 :' *n1:' s.* ri'.b.d 2.8er bruio, cubr 0]|6 in ra2425 ed4).wor. @ur ol aG uriried uch.d 60. I br 6n (ubrc tu

Itrfitrc md T_r-!totos: SAUDT AR]IVCOT work force by lh. dd ot 142445

:.-Yxl f-f ..1: .g*d .,!ror.B. 'b.

rojority d ,hon {85 Fcnr) e!.uos rM! hoid l0o pohl of rfi. Cohpur,r bp tl]@g.1Gl pos,ri6 ud B Ip.rd oi r. cohpdy! hior D.6i!ion5.

SAIJDI.{Ri-\,CO s hbin! prcehq on. ofrh. t&gcd of,ts hnd in r!. sort4 air5ar mMn3 rebnitos| b rlcsludi rupo*d Thn pDge B md.@ld by a

l:Mjj,ryll I TTc *tr d rndutur rMr.s cmh, rob sL, . rn_lalcnEF do I nhrn8. Mrca! bm(h6. Th. min hhjns cenh contu.ti$mNsAUDr AR MCO prcvde Elinbe ro rhosedr of S.udi

:Lli"l: :l.1 ,* rErnins proslm h.rnde sildy @u..! oD-rh.-job E{nn&uB6ty g@8, mm6 D deyelopinS prcf*i@l qaX@ .nd pod-gnducsor6. h. ampey enrhuA rts pDsrn ro .nhre pioddivity _a r i.po*woft pedol]Mc. ed rb oq up ltrou3h rupfl,erylbffnlinms.

D!tug la2a45 (?mal lhfr *k rbour l5B3 p€n,c,pets h lob-Et.r€d rc.d.dc@lle. ed .rmsr I 7{6 .m .d d .tob 3*jtb ,nd on_6Gjob IrrnDg DtuE'.s.SAUDT AXrMCO6bblNh.d erSbr gorcmoronng'ng b. rorlt .Mber of *heL ebhr,+.,ir953_

sohoob, in 142425 (2004), lh@byby ARAMCO to 139 sc[@h sim.

Sr{di Anbl.r MtoioS Cohprtry tMA. DEN)I bc sM Arrb'bt iniIg cor@4y (MA ADENj hs bar dbbt,sbed s pf d.tr11-5T. i: M/rT rLrd r,s lr4r? s d .ubmmu joh !to.*.or4oyruuy oMd by lrc aowmEer s't ! @ptul oa SR 4OOO muror. Th. C.;m;qd.|lrM svdd nrtrs rtiviri€ Ftlr.d b,lr s.s6 of nitun8indBby inctudin;

f nin,n3 indBry od producE 6 we s ,.kknj:^iTT,T: ll.. i.ry:y :pa€ on ommfthr b6r ro Mrik p,onr A! peuuc or Mrur6 rGolurioo No. I09 dalcd t/.VI42, !D@v!d rb. *btirhrdor MA ADEN Cor@any .nd its pnvrtratiod widm ;; pnv,.iz.riotr sEgyruftrurc. h. compey om M d Adh Drhlb Mhe bd fto sfldi pr(i;uMclris Compeyrsultraybbt Mr.r. MA.ADSN rtso obbin d .xptoEuoD h.cB6::.1.E".9: 1..w4 ^9,q'h. !"""" sbcbe

^r Dusarhi rtrd DuruD,

^u!nrh.ll.?-T...1I1111 fTPi 6r prc,h.r. m u w.di Ar sshd dd ru,t rornsrerr u arsb,4 rablt Ab( sd Jlhst At Rur.!M, ror am in Ar Kbrurquiirh;ror,Kdto^c

'o lob.l KaBb a 'dr 4 ticn,B to .rptorarion ot inddlrDt non;.iatrc

In ribrt !,.{l|n. Po[oM8 e lh. mro, qu,,tc .i oc coopor.

y::1-idl;g:l:" $., ydd 4dr.Dd!b mrb. tr $. c$r prodkrs mn. in rh.^n3@m

or,tj'ldr Anba..The rhc h tocdted h Midmo Mtulwio regron, ed istu),otu by MA ADEN orrpatry, om d elE*non bd dplorbron of puioEi:.::. '":1": '6e qd^loo m r.o8 rre3e) dd ,s prodlcrod r r420,2trrwj l!d.d .bod 69J14 oulu orgo|lr 10,t89 offis ot3it€, s?3 6D oa@p!q €nccDil.t* atrd j040 l@ of zinc conc.ndztes. L Aiat2s trnal

p@du.lion @b.d 5J,414 M6 of gor4 2t3,8I ou@ of snE, 652 to,e of6t0tr6n6h.te ed l.797lou of t.c co.mrd€.

Sru.tl Prcdou {.r.! Cohprny (Sut!.ybr..0: Sul}0yb.6r tu. D toc.cd i!v4srn EAion I e m., *ltcb B tutb om.d by MA,ADEN, aiB ir qptoibriond tord d Fcrcs ,fuls u tr cGion |M Th. $ud priou M.u&:,:TTl *'e :l:!^ql1il '10,

( re8e) hd sred prcdudion ,n | 4r r ( rae r ). rr,.pr@!!o, d,l42o4l (2000) Hc\ed lbour 47:99 ou6 of gotd od w6 62,stJow6 b bc tal y@ of rhc sdatb pts ta24,.25 (2oo4r.

.B.l{la_ gT.l!]osr.d m lr.rr4aqins,h Mmsd dsbid. I hs mne u tu } os.cd.y l" "yN lgl qbadi!8 md dptoitins pEbD sr.L. rhc nj!; $ttcdpdkuoo o 1422n I t2002) htb d @qut of 2l,293 Mc of sold tre poddi..

'4hsd r 03.429 ou€ ofsotd i! t 4242t r 2OO4t.

l.:lil:i.a1c. " ,-11T * AE. rh. mift. whicb r ury oM.d by M!.d. dru.ddhdbn ud lrliahn oIpftioB mbh.Ir r@d prcdldion in ta2l,2i(zwr rwb D ouFLnof2z,273 oucc, ofgotd ed ?0,oo9 ouc$ ot3,tv.r.

Its^prcd@.r lmoEd rtd Ja,O4J ob6 of gotd ed 252, j 80 ob€ o, s,lrer ht4z4n5 (2004\

C.@.logcrl s!rt!.ed Ehnic.l studr.5 h w y uds wiy tor $. dftlopMror ArAme Md Ai-c&iroh tunes a $. s rfic orhd nDtodion @s sb;d bMA ADEN. Th. 6mpey hs r 7 Lcrue ror dDlon on oi dl $?e of p;ioE inder |l).@ m drnimr '!u of th. Krned.n

TEXT OF TEE 1983 SA!'DI ARABTA MODEL COII.IRACT

(INCDOM OF SATJDT ARAAIAM\'TSTRY OF COMMI]RCE

INTERNAL COMMERCE CONTROL

CONTRACT OF AGENCY OR DISTRIBT'IORSHI?

0)

(r0A9

'hls .sr6mdt h6 ben m.d. by-&d b.l;;;

cR.No.by (Hs.mano rfed.d n

& rh. s4ond Pony/Aedu:

TI,EICITAIS\t HE_RE- A,S, borh pini6 derrc ro mc nro m ig6cy o, dshomBnp arug.mmrrc 3w o.r muMi blft* &d ro sp4i& ,h. riehB dd obl,satim oi.@b frry ml@mrm6. !!d

WfiEREAS, the" SEond &rV (Sandi) dsj&s lnat leh EhrioDnip conf@ lo the

- yjl:"l, d^"&b"Tj qd Esad b fNisn ""a" r.,p"a ""a

_p"nr,rp<D,qry,o. (.'lJ1mid Asdd6 tu8utdi@ .!d !lM&mr, d.fu in lh.Nng@n d saldl A6b4 which EgutauoB Tqur., diMr rctalbnrhjp b€tu*n theDutr$ .got.or .dierib'hr ofpoducE &d $c orisimror arpad) sbd. Nons,!ds d! prcbjbir.d - qqtiDs u imDod od odn bqi,6g M @nrllm,at3aacB In be xirsdom ofs&dj Anbir

Both p.rtle hdby rgr€. s toloE:

OENEML /QTICLESArticl. (l) Ihe !hov. €id! sndl be enljdcrcd { int g4t put of&tu snlract,

ilijff ;U ;""tr f-* Sffi fff;,?il11,rf$iisJ#j:,;:X::: :T*Tllt, j.,t*uc6 tr s.di* *qoio u, a"u:r"rooaip.t@l @ b.holf of tudinlh.@ot

Anicl. (1) The t oF of rbD rgocy 6nM @v6 l[.

Dsid.d rh. frEr Pany d h.E-dersprofi.d TlE prcd(Is hctnded in $is agency

anicr. (4) Th. Ssgnph,c .Ea covmd by rhf conhr sb.I b.Gpecii/ \ h.rher rhrougholr rhc Xrgdom or fo, , l*d r.gi6.)

dMbl. elduticalty fo. sothd period.t l.a16e notuns p.ior ftinen noli@ oftis i edon io

lam of rhi! @ntr*r shdl b€

RXCIPROCAI! OALIGATIONS*:]. (61P**

'r'. s."*a parry i, obhcrd und.r s,ud taw b g@ettr rhcq@ry or bc pro{ucts and mreials shrh fom tb. subr4r of ltls Mbn ud !o

d s?e p€^ rr t!.fubr. pnc6 *hd EquiEd hy@s@8. rb. Finr P&ry lhr abo be obLs.rcd lo lhc ,tg-r ro, o. @ioo'g oro tr cmdoce w h lhe Equtr meots oi rhe cobum.6 od lhdl posd.s@mDtue on skh d!t6 crd shrl prcvj& !(h,p€E pm b sM 'm@t

6my F spefrd by lle Ago.. In lddrioD. th. F6 p.rty $il pblde ro rh. s@ndi-8lly

ill.s::l'. en,ej lkl sryF pm md nc.d.ry ruhtuc .rboush d.d. onr yea loitow'n8 lb. qpiry.tsk ofrh* onhd o, t n lhe riu ofappo-idmg

Anrl. Or Tb. S*dd plrty r ootigdcd uder Siudi hw b prcvdc undo rhtr@n@r ody pbdlcts aJld mEriis rhr e @mp.rbtc qrh ih. arprcvcd shn !.rdy::lyuoi: r b. K:cdoT ric Fid pie .tnr smr.c rb. qu.hy or rh6.Fnm dd mrhats rnd llrM thr rh., co.lom b apprcv.d sbdritrpRtr'cdo$ in, rh. Kingdom: rhe Agor .bal nor oe obtiSrr.d b d.rv., or b.ep.tu,Dre ror dtrrtbubon of, &, quhnes u.ivcd 6od d. FiB{ pdry rhd *on@y ro $ch rquind shlded ipeitidrios.

g1:1" !91 ry." *d:, ,,,11 :I"src rhb enhd in i*ordme willl &*nowhnscdoud6s ptunFs tud Eood faj6. s(h obtisarron shr REDd oo inchd. dl cctivi;6aTY ^ p-

"r u. anld Eq!,l!ffits bd6 scn.rlty *.er.d buird

SPECIAL OBLIGATIONSanicb (r)in s@Dd p'ny shdl uldafilc b:fo) Porid._ th.jrcnisb rcquiEd tor $. aeor ro tu hls bqhe. r ln. K,Dgdomwrm ms oM 8ta . ctsis. rD E$oirbtc cft sd drl,8oc., ed b. dl|U.d toru. Bt d 6. ffi@ Md t*bnicd *Jdis. ot de Fd p6ty a od yhdrb) Pdfm--rU-.wdll neacry

lll.ue h. ercdlcb, srr.. Nlilrb,e slilrbk srods. '@. opa m,(l&Md c.nc: s oy b. nGqry 6d povid. tocrl re@ qiiE the 'E@vcd by inc dM. Tb. Seond pdy $.1t. ir !h. Frf(r|@. oa 646nnd. b. ot ted b $. rhr Fiur priy s Fadtuk bur sitnou, uy adddoN o,mddfi€noN H. shal .l$ erfl hR ben .d.o( ro trEl. ,ucb hocm&k knoq

Anid. (10) ftc fiht pally 3hill Dod.nlt to:a) Poy the S(ond Psry a comiercn in lhc o@ur of

or tll.- eolu of |.b.rkE std q$q {:. €drd 0E; |f d,rur.. re ud.drcrly b i Thdt pdy b) lh. FiR, pdly S.h.d . or p6rrmB lndi -;O) Erek- lh. conhd utn dlLaqc. wb.rhcr s b ob!.fr,ron o, good qulnrypr@4.bd dcn'tq which fom rt. srbjd or lhe @fac( or urs $r. ddgloo d.nv.ry !o $. s@nd pdty. o, ro frdfr obtig.rtu Fsrding qwdue .41dds 3p<ift.d in 6e send Ptuw\ onl.Fk) B@ Gpodrbrtry for th. tautts of hitu!.tr bd his mptor€. wh.n ju.h f.ulrcurE b dm*. i0 rb. s4ond PfrE!plr', C.nc.ttrtton !d ComD.uldoraft.le I I I r TnE oDhr shdt bc t.frin,red if p.rfo@ by .rt])d F4r nM'.r.d iD?os'hlc q upor rb. dcdr! d ft. ro.! oi@q.rtuy. or rh. b€;k$kyor ath* p&9 This odhcr my atso b. tm{.d by rc;@.!@ uoon a sbsllnd;la ru. rn aaunon bv u\e oth.r bmAnjck ( | 2) Th. Agdr !b,l b. qld.d ro @dp.M!d tu d.tug6 *hi.h m, |eourord. Pnnopalr uDbilrry ro dd hrs 6d1nhdB, rcodDs 6 ric cob@l o!

9:1.,:1,3)_,1 |}: ly:ed RITT lo rc'w tr @,rN. woli Bdq $u @Diad, lll.mMrd Agoi 3hr be mrirkd ro (enaltc comphldion for br iflrvrh.! !h.t

r su4.* m thc budeN of$e lminord ABoL:rly,-1:9a"" 1r., *r b..nrd.d b omp@.iiotr ro, bi! p,o@ri-on l

ition tn 6uk i! goodwitt rhd ruy 4me b dE

africlc (14) Th. Prtuipol tuy cld. otrp@tion Glm ll|. Agdr ad d,886qus.d a ! Fsulr of rhe A8has,bedonin! du fuacy pnor b ihc qpiry of;hconEadorasar.!!tro' &ybRacho.rhBsorldbyrleA;.d.

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