ABSTRACT
This chapter examines some important ways in which the discovery and development of oil has affected economic and political change in the states of the Arabian Peninsula. In Arabia, governments and rulers have received revenues from oil companies in many forms—concession rents, fees, royalties and income taxes, but by far the most important form for those countries in which export production has been established is the income tax. The oil companies may offer a compromise in the form of arrangements which give the appearance of partnership without granting the government partner any share of control over offtake. In addition to the partnership arrangements made with their new concessionaires, most of them have established national oil companies. The two important national oil companies in Arabia are the Kuwait National Oil Company and the General Petroleum and Minerals Organisation (Petromin) of Saudi Arabia. KNPC was established in 1960 with a 60% government and a 40% local private ownership.
