ABSTRACT
The welfare state system in the Kingdom of Saudi Arabia is indeed a very special one in international comparisons, particularly when compared with other regions in Asia, and beyond. While the greatest emphasis of the Saudi welfare state system is placed on land redistribution, rather than income redistribution, it has also developed large social security systems with regard to education, public health services and unemployment benefits. While there is a pension system in place, the benefits are extremely low in international comparisons (in Saudi Arabia, land redistribution serves the functions of old-age income maintenance or lifetime wealth creation, i.e. land and housing ownership is a functional equivalent of pension income. While the health care system also serves the large proportion of expatriates working in the kingdom, pensions, land distribution, education and unemployment benefits are the main pillars of a welfare state system that mainly caters to local Saudi citizens only, which is a special characteristic of the welfare regime in rich countries in the Middle East (especially the Gulf Council states). As is the case in the Russian Federation, most of the current welfare state system is financed through oil and natural gas incomes generated through exports, which raises big questions about the fiscal sustainability of the Saudi welfare state system in the decades to come.
