Generous benefits and a popular king help stabilize the oil-rich kingdom
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King Abdullahg |
The contrast between Libya and Saudi Arabia on Feb. 23 couldn't have been more striking. As Qaddafi loyalists fought rebel forces east of Tripoli, oil majors such as Total (TOT) and ENI (E) cut or suspended their Libyan oil production, while the U.S., Britain, and Italy prepared to send ships and planes to evacuate their citizens. On the other side of the Arab world, Saudi King Abdullah returned from three months of medical treatment abroad laden with gifts for his subjects. Abdullah, known as the people's king, announced $36 billion worth of new jobless benefits, education and housing subsidies, and debt write-offs. The government even unveiled a new sports channel.