1This updated edition analyses the challenges, both internal and external, facing Saudi Arabia in the twenty-first century. Two new chapters discuss the political, economic and social developments in the aftermath of 9/11, painting a vivid picture of a country shocked by terrorism and condemned by the international community. Madawi Al-Rasheed reveals that fragmentation of royal politics, a failing economy and fermenting Islamist dissent posed serious threats to state and society in 2001. She assesses the consequent state reforms introduced under pressure of terrorism, international scrutiny and a social mobilisation of men, women and minorities struggling to shape their future against a background of repression and authoritarian rule. While Saudi Arabia is still far from establishing a fourth state, there are signs that the people are ready for a serious change that will lead them to a state of institutions rather than princes.