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In the short run, all oil exporting countries including Saudi Arabia are affected by the low oil prices. But Saudi Arabia benefits in the long run with estimated currency reserves of about $700 billion, allowing it to bear current low oil prices for a few more years. Low oil prices also give Saudi Arabia political power over other oil exporting countries that are its political rivals. For example, Saudi Arabia clashed with Russia and Iran over the Syrian conflict when the latter kept supporting Bashar al-Assad's regime against Saudi Arabia and its western coalition.
The history of Saudi Arabia in its current form as a state began with its foundation in 1932 by Abdulaziz Al Saud, although the human history of the region that is now Saudi Arabia extends as far as 20,000 years ago. Fahd became king in 1982 - during his reign Saudi Arabia became the largest oil producer in the world. 2  However, internal tensions increased when the country allied itself with the United States, and others, in the Gulf War of 1991.