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xiii | |
| Preface |
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xix | |
| Acknowledgments |
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xxiii | |
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1 | (40) |
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4 | (9) |
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13 | (6) |
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The Political and Foreign Policy Challenges of the Twenty-First Century |
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19 | (1) |
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The Coming Domestic Challenges |
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20 | (4) |
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The Economic and Demographic Challenges of the Twenty-First Century |
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24 | (11) |
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``Oil Crash'' and ``Oil Boom'' in 1996--2001: A Case Study |
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24 | (6) |
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The Impact of Demographics: A Rising Population Means Declining per Capita Oil Income |
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30 | (1) |
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The Ongoing Saudi Response |
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31 | (3) |
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Setting the Pace of Implementation |
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34 | (1) |
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The Security Challenges of the Twenty-First Century |
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35 | (6) |
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Territory, Strategic Depth, and Vulnerabilities |
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35 | (1) |
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Strategic Concerns and Military Requirements |
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36 | (1) |
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The Problem of Strategic Dependence on the West |
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37 | (4) |
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Foreign Relations and External Security |
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41 | (90) |
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Iran and Iraq: The Primary Threats |
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44 | (19) |
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44 | (8) |
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52 | (1) |
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Trying to Live with the ``Enemy'' |
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53 | (3) |
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The Threat of Iraqi Invasion |
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56 | (3) |
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Iraq and Asymmetric Warfare |
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59 | (1) |
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Iraq and Weapons of Mass Destruction |
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60 | (2) |
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The Saudi Approach to ``Dual Containment'' and the Overthrow of Saddam Hussein |
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62 | (1) |
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The Southern Gulf and Yemen |
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63 | (23) |
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63 | (7) |
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70 | (1) |
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71 | (4) |
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75 | (2) |
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77 | (3) |
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80 | (4) |
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84 | (2) |
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Relations with Israel and Policy Toward the Arab-Israeli Conflict |
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86 | (12) |
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The Saudi Shift Toward Peace |
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87 | (2) |
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Peace and the Second Intifada |
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89 | (2) |
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Crown Prince Abdullah's Peace Proposal |
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91 | (3) |
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The Arab Summit: Beirut, Lebanon, 2002 |
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94 | (2) |
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The Arab Peace Initiative |
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96 | (2) |
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98 | (1) |
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99 | (1) |
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100 | (1) |
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Relations with the Greater Arab World |
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101 | (2) |
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Relations with the United States and the West |
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103 | (17) |
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The Formative Period: 1933--1953 |
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105 | (1) |
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Nasser and Arab Nationalism: 1953--1968 |
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106 | (4) |
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The June 1967 War to the October 1973 War |
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110 | (1) |
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The October 1973 War to the Fall of the Shah |
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111 | (1) |
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The Fall of the Shah to the Gulf War |
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112 | (4) |
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The Gulf War to the Second Intifada and September 11, 2001 |
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116 | (2) |
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Developments Since September 11 |
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118 | (2) |
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Saudi Foreign Policy at the Beginning of the Twenty-First Century |
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120 | (11) |
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Politics and Internal Stability |
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131 | (30) |
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The Monarchy, the Majlis al-Shura, and the Royal Family |
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132 | (24) |
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134 | (2) |
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Current Prospects for the Succession |
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136 | (5) |
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The Need for Change in the Next Generation |
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141 | (3) |
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The Saudi Cabinet or Council of Ministers |
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144 | (3) |
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The Creation of the Majlis al-Shura |
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147 | (5) |
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The Changing Saudi Political System |
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152 | (4) |
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Political Reform and Opposition |
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156 | (5) |
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Opposition and Islamic Extremism |
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161 | (68) |
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Working Within the System: The Role of Saudi ``Modernizers'' |
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162 | (1) |
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The Character and Impact of Saudi Puritanism |
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163 | (12) |
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Putting Saudi Wahhabi and Salafi Beliefs into Perspective |
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164 | (2) |
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Charity and Extremism: The Flow of Money |
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166 | (1) |
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Most Islamic Puritanism and Extremism Is Not ``Wahhabism'' |
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167 | (2) |
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Islamic Extremism and Saudi Youth |
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169 | (4) |
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Trying to Co-opt Islamic Extremism: The Rising at the Grand Mosque |
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173 | (1) |
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Islamic Extremism and the Failure of Co-option in the 1980s and 1990s |
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174 | (1) |
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Education as a Self-Inflicted Wound |
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175 | (2) |
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Making Women Part of the Problem, Rather than Part of the Solution |
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177 | (2) |
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Religious Extremism and Active Political Opposition |
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179 | (27) |
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Moderate Opposition: Religious Fundamentalism |
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181 | (2) |
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Hard-line Peaceful Opposition: Sheikh Safar al-Hawali |
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183 | (1) |
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Nonviolent Islamist Opposition: Salman al-Auda |
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184 | (1) |
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Nonviolent Islamic Opposition: Sheikh `Ayd al-Qarni |
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185 | (1) |
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``Quasi-Violent'' Islamist Opposition: The Committee for the Defense of Legitimate Rights (CDLR) and Muhammad al-Mas'ari |
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185 | (3) |
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Violent Islamic Opposition: The Saudi National Guard Bombing |
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188 | (2) |
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Militant Islamist Opposition: The Al-Khobar Tragedy |
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190 | (1) |
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The Initial Course of the Al-Khobar Investigation |
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191 | (3) |
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Serious Progress in the Al-Khobar Investigation After May 1997 |
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194 | (2) |
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The United States Issues an Indictment |
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196 | (1) |
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The Role of the Saudi Hezbollah |
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197 | (3) |
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The Detailed History of the Attack |
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200 | (4) |
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The Role of Iran and the Threat of an American Follow-up |
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204 | (1) |
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The Saudis React with Denials |
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205 | (1) |
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206 | (4) |
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Militant Saudi Extremists: Osama bin Laden and al-Qaeda |
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210 | (3) |
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Militant Saudi Extremists: Other Threats |
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213 | (1) |
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Opposition, Extremism, Terrorism, and Saudi Counterterrorism |
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214 | (7) |
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International Cooperation |
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216 | (1) |
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Arrests and Questioning of Suspects |
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216 | (1) |
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Legal and Regulatory Actions, Freezing Terrorist Assets, and Combating Money Laundering |
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217 | (2) |
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Actions Taken in Regard to Charitable Organizations |
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219 | (1) |
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Other Initiatives Related to Fighting Terrorism |
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220 | (1) |
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Looking Toward the Future |
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221 | (8) |
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Economic, Demographic, and Social Challenges |
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229 | (88) |
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The Dynamics of Recent Demographic Change |
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229 | (6) |
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Trends in Total Population |
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230 | (2) |
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Trends Toward Urbanization |
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232 | (1) |
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232 | (2) |
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Population Exposure to Media |
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234 | (1) |
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The Future Pace of Demographic Change |
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235 | (4) |
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Demographics, Per Capita Income, and Consumption |
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239 | (8) |
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Historical Patterns of Inadequate Real Economic Growth |
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239 | (4) |
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Population, Per Capita Income, and Relative Wealth |
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243 | (4) |
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Redefining ``Oil Wealth'' in Macroeconomic and Human Terms |
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247 | (3) |
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Demographic Pressures on Saudi Society and the Saudi Labor Force |
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250 | (11) |
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Estimating Future Job Needs |
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251 | (5) |
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The Labor Force Implications of the Seventh Development Plan |
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256 | (1) |
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Skill Levels and the Saudi Labor Force |
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257 | (4) |
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The ``Youth Explosion,'' Foreign Labor, and Saudisation |
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261 | (19) |
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The Blessings and Curses of Saudisation |
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271 | (1) |
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Real-World Progress in Saudisation |
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272 | (2) |
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The Current Level of Progress and Nonprogress in Saudisation |
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274 | (2) |
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Saudisation and Native Saudi Unemployment |
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276 | (3) |
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The Impact of the Seventh Development Plan |
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279 | (1) |
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Saudi Economic Development versus Saudi Education |
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280 | (8) |
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A Mixed Picture of Strengths and Weaknesses |
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280 | (1) |
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Progress in the Sixth Development Plan |
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281 | (2) |
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The Impact of September 11 |
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283 | (1) |
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Progress Planned in the Seventh Development Plan |
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284 | (2) |
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Looking Toward the Future |
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286 | (2) |
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Saudi Entitlements, Infrastructure, and Diversification Problems |
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288 | (3) |
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The Challenge of Subsidies |
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291 | (3) |
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Pressure on Infrastructure |
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294 | (5) |
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Electricity as a Case in Point |
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294 | (3) |
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The Broader Infrastructure Problem |
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297 | (2) |
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The Interaction Between Demographics, Water, and Agriculture |
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299 | (7) |
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Water and the Goals of the Seventh Development Plan |
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302 | (1) |
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The Impact of Agriculture |
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303 | (2) |
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Sustaining a National Water Problem |
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305 | (1) |
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Meeting the Kingdom's Economic, Demographic, and Social Challenges |
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306 | (11) |
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Building True Wealth versus Overdependence on Petroleum and the State |
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317 | (146) |
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The Saudi Economy at the Edge of the Twenty-First Century |
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318 | (25) |
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The Key Challenges the Economic Reform Must Meet |
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322 | (1) |
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Tangible Steps Toward Economic Reform |
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323 | (3) |
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The Supreme Economic Council |
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326 | (1) |
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The Economic Consultative Commission (ECC) |
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327 | (1) |
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The Supreme Council for Petroleum and Minerals (SCPM) |
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327 | (4) |
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The Saudi Arabian General Investment Authority (SAGIA) |
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331 | (2) |
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A New Foreign Direct Investment Code and Other Measures |
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333 | (1) |
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The Provisions of the New Foreign Investment Law |
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333 | (1) |
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334 | (1) |
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Foreign Ownership of Real Estate |
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334 | (1) |
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Fund for the Development of Human Resources |
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334 | (1) |
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``Negative List'' of Areas Excluded from Foreign Investment |
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335 | (2) |
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Saudi Efforts to Join the WTO |
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337 | (3) |
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The Supreme Commission for Tourism |
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340 | (1) |
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Saudi Efforts to Use the GCC to Strengthen the Saudi and Gulf Economies |
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341 | (1) |
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Future Reforms Now Under Consideration |
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342 | (1) |
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Putting Current Saudi Efforts in Perspective: Plans and Goals versus Actions and Achievements |
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343 | (8) |
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The History of Saudi Planning: The First through Fourth Development Plans |
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343 | (4) |
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The Fifth Development Plan and the Gulf War |
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347 | (1) |
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The Sixth Development Plan |
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348 | (3) |
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Looking at the Future: The Seventh Development Plan |
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351 | (5) |
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The Macroeconomic Implications of the Seventh Development Plan |
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351 | (5) |
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The Labor Force Implications of the Seventh Development Plan |
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356 | (1) |
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The Challenge of Dependence on Petroleum Exports and Revenues |
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356 | (20) |
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The Other Impacts of Petroleum Dependence |
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365 | (4) |
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Political and Military Risks of Saudi Overdependence on Petroleum |
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369 | (7) |
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``Oil Bust'' and ``Oil Boom'': The Interaction Between OPEC and Market Forces |
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376 | (7) |
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OPEC, Mild Winter, and Asian Recession: The Oil Crash of 1997 |
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376 | (5) |
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The Wheel Turns: The Oil Crash Turns into an Oil Boom |
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381 | (2) |
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Oil Wealth and Demographics: Understanding the Future Limits |
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383 | (7) |
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The Challenge of Reducing the Government Sector |
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390 | (1) |
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Managing and Restructuring the Saudi Budget |
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390 | (20) |
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Saudi Budgets in the Early- to Mid-1990s |
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394 | (5) |
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Budgets and the Sixth Development Plan |
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399 | (1) |
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Budget Deficits, the Oil Crash, and Oil Boom |
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400 | (6) |
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The Need for Budget Reforms |
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406 | (4) |
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Foreign and Domestic State Debt |
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410 | (4) |
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The Limited Impact of the Present Debt Burden |
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410 | (1) |
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Past History and Future Risk |
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411 | (3) |
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Privatization and the Private Sector: Intentions versus Implementation |
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414 | (21) |
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The Seventh Development Plan and Meeting the Challenge of Diversification |
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420 | (2) |
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The Growth of the Private Sector |
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422 | (3) |
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The Success of Privatization by Firm and Sector |
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425 | (1) |
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The Privatization of SABIC and SIPC |
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425 | (2) |
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The Privatization of Natural Gas |
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427 | (1) |
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The Privatization of Telecommunications |
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428 | (1) |
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The Privatization of Saudi Airlines |
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429 | (1) |
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The Privatization of Postal Services |
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429 | (1) |
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The Privatization of Electricity |
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429 | (3) |
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The Privatization of the General Railway Organization |
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432 | (1) |
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The Privatization of the General Port Authority |
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433 | (1) |
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Overall Progress in Privatization |
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434 | (1) |
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Private and Foreign Investment and Banking Reform |
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435 | (13) |
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Investment and Stock Market Reform |
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439 | (5) |
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Opening Up Saudi Arabia to Foreign Investment |
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444 | (4) |
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Broader Goals for Economic and Social Reform |
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448 | (15) |
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Shaping the Future of the Saudi Petroleum Sector |
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463 | (88) |
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The Critical Global Importance of Saudi Oil Reserves |
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465 | (2) |
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467 | (20) |
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The History of Saudi Oil Development and the Role of Aramco |
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467 | (6) |
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Saudi Oil Production Today |
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473 | (3) |
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Oil Production and Quotas |
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476 | (7) |
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483 | (2) |
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Expanding Saudi Oil Production |
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485 | (2) |
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The Case For and Against Foreign Investment in Crude Oil Production |
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487 | (1) |
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Export Facilities and Distribution |
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487 | (2) |
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489 | (5) |
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491 | (2) |
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493 | (1) |
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494 | (4) |
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Saudi Basic Industries Corporation (SABIC) |
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495 | (1) |
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Petrochemicals, Privatization, and Foreign Investment |
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496 | (2) |
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498 | (4) |
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502 | (9) |
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504 | (3) |
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Foreign Investment in the Gas Sector |
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507 | (4) |
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Saudi Energy Strategy in the Twenty-First Century |
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511 | (14) |
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The Strategy in the Seventh Development Plan |
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511 | (2) |
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The Statements of the Saudi Oil Minister |
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513 | (2) |
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Longer-Term Saudi Strategy |
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515 | (2) |
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Shaping Future Saudi Oil Production Capacity and Exports: Western Estimates and Projections |
|
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517 | (2) |
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Shaping Future Saudi Oil Production Capacity and Exports: The Saudi Approach |
|
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519 | (5) |
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Saudi Ability to Meet Long-Term Increases in Demand |
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524 | (1) |
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Changes in Saudi Energy Strategy and Investment Policies |
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525 | (15) |
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The Problem of Oil Prices |
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525 | (3) |
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The Saudi Debate Over Investment Strategy |
|
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528 | (4) |
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Oil Crash Becomes Oil Boom, and Oil Boom Turns to Oil Crunch |
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532 | (3) |
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Future Need for Foreign Investment in Upstream Oil |
|
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535 | (1) |
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Saudi Oil Production Capacity Strategy |
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536 | (2) |
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The Impact of Limiting Production to Maintain High Prices and Maximize Oil Export Revenues |
|
|
538 | (1) |
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The Impact of a Maximum Market Share Strategy |
|
|
539 | (1) |
|
Living with Uncertainty, and Doing So with as Little Ideology, and as Much Pragmatism, as Possible |
|
|
540 | (11) |
|
Saudi Arabia at the Start of the Twenty-First Century: Key Conclusions |
|
|
551 | (10) |
|
|
|
552 | (1) |
|
Population, Youth, and a Vision of the Future |
|
|
553 | (1) |
|
The Need for a New Social Contract |
|
|
554 | (4) |
|
Oil Wealth or Oil Poverty? |
|
|
554 | (1) |
|
Creating the Need for a New Social Contract |
|
|
555 | (1) |
|
The State Budget, Subsidies, and Welfare |
|
|
556 | (1) |
|
Privatization and Encouraging the Private Sector |
|
|
556 | (2) |
|
Population and Foreign Workers |
|
|
558 | (1) |
|
The West and the Pace of Saudi Modernization |
|
|
558 | (3) |
| Bibliography |
|
561 | (10) |
| Index |
|
571 | |