Dissertation_Dr Faisal Almubarak

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With the shift from traditional, bazaar urban economies to a modern economy based
on oil exportation, dualism in urban economies emerged. This was characterized by the
developing export-oriented commercial sector juxtaposed to the peasant agriculture and
bazaar economies. Dualism refers to the presence of a modem sector, which endows cities
with great economic opportunities, isolated from the subsistence activities of the
population. In developing countries' literature, the phenomenon of dualism has been used
to understand how cities continue to attract population. Moreover, dualism is argued to be
fostered by the growing importance of the state in the economy. Economically speaking,
the immense income furnished by oil exports has enabled the Saudi state to usher in
economic growth in urban centers, while still leaving considerable funds for the
development of rural areas.
The changes brought by oil affluence were far reaching in all aspects of the society,
including its physical environment. "Oil", wrote Philby in the late 1950s,
has a twofold effect on the social economy of Saudi Arabia. In the first place,
the wealth derived from it has created a desire for comfort and 'progress' on
Western lines among the princes and well-to-do citizens of the country...The
motor car, with its facilities for picnics, is a powerful agent in the direction of
progress; and it would seem but a matter of time,when Westernization will
become as general in Saudi Arabia as in its sister borderlands. 30
The early government expansion of services resulted in slow urban growth as locals
were attracted to work in the burgeoning government bureaucracy. The peasants, selfemployed
petty traders, craftsmen, and nomads have gradually become wage-earners, as
the economy transformed from a self-sufficient, domestic economy into an export-oriented
one adapted to the international economy.
IV. TWO DECADES OF TURMOIL (1953-1973): DEVELOPMENT AND CHANGE
AFTER KING ABDUL-AZIZ
King Saud, at the age of 53, inherited the fledgling administration after his father's
death and followed in the same steps as his father in governing the country. King Saud
inherited the callow polity with defined national boundaries, a functioning administration,
and a standing army, which though ill-equipped and trained, was by far superior to the
poor-armed tribes. The expanding affluence of oil has since placed the King with an
advantageous position vis-a-vis the undeveloped traditional sociopolitical institutions.
King Saud, though lacking his father's enthusiasm and adroitness, was ready to launch