Saudi Arabian history spans thousands of years, but its modern formation began in the 18th century. The most significant historical events include the rise of the First Saudi State in the 18th century, led by Muhammad ibn Saud, who established the basis for the present-day Saudi monarchy. The Second Saudi State emerged in the early 19th century but collapsed due to Ottoman expansion. In 1932, Abdulaziz Al Saud united various regions into the Kingdom of Saudi Arabia. The discovery of vast oil reserves in the 1930s transformed the nation's economy and international importance. Saudi Arabia played a vital role in Arab politics and the OPEC. The nation has been impacted by regional conflicts, such as the Gulf Wars and Arab Spring. Throughout its history, Saudi Arabia's rich cultural heritage has remained rooted in Islam, shaping its social and political landscape. Saudi Arabia has an absolute monarchy political system, where the King serves as both the head of state and government. The King holds significant powers and makes all major decisions, supported by a council of ministers and religious leaders. There are no elected representatives or political parties, and the legal system is based on Islamic law (Sharia).

Saudi Arabia's economic history has been shaped by its vast oil reserves, discovered in the 1930s. The oil industry rapidly became the main driver of the nation's economy, propelling it into a prominent position in the global energy market. This period of oil wealth brought significant economic growth and development, but it also led to a heavy reliance on oil revenues, making the economy vulnerable to fluctuations in oil prices.

In response to the need for economic diversification, the Saudi government launched a series of development plans. One of the most significant is Vision 2030, introduced in 2016, which aims to transform the economy and reduce its dependence on oil. The plan focuses on several key areas, including promoting non-oil industries, encouraging foreign investment, developing tourism, and enhancing education and healthcare. In the present day, Saudi Arabia remains a major oil exporter, playing a critical role in the global energy landscape.

As a major oil exporter, Saudi Arabia supplies a considerable portion of the US oil imports, ensuring energy security for the US. In return, the US is an essential market for Saudi oil, supporting the kingdom's economy. As a result, Saudi Arabia's currency, the Saudi Riyal (SAR), has been pegged to the US Dollar (USD) since 1986. This peg maintains a stable exchange rate between the two currencies and fosters confidence in trade and investment between the nations. Saudi Arabia's monetary policy follows the US Federal Reserve's policy due to its currency peg to the US Dollar.