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Global Oil Supply Security and Al-Qaeda's Abortive Attack on Abqaiq, Saudi Arabia

(Institute for Contemporary Affairs/Jerusalem Center for Public Affairs) Mordechai Abir - Had the February 22 attack on Saudi Arabia's largest oil complex at Abqaiq been successful, oil prices would have likely broken all records and might have caused a worldwide economic crisis. The two car bombers who attempted to breech the Abqaiq security perimeter were senior al-Qaeda members, giving credence to the Saudi government's claim that it has largely succeeded in breaking the back of the organization and that only a handful of veteran activists are functioning. Riyadh is expected to have $220 billion in financial reserves and a budgetary surplus of over $30 billion in 2006. The kingdom's per capita income, which declined from $21,000 in the early 1980s to about $6,000 by the end of the 1990s, increased to $13,000 in 2005. Properly managed, Saudi Arabia's economy is likely to continue to prosper and help the House of Saud overcome the frequently forecast collapse of its regime.
2006-03-17 00:00:00
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