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In the past two weeks, Saudi Arabia sparked a wave of outrage with the execution of Shiite cleric Nimr al-Nimr and sent investors into a frenzy over the possible sale of shares in the world's largest oil company, the Saudi Arabian Oil Co. Many observers attribute the country's behavior to the dominant royal personalities of the day. Western media have described Deputy Crown Prince and Defense Minister Mohammed bin Salman, the 30-year-old favored son of King Salman, as arrogant, naive and impulsive, and they have credited him with steering the Saudi kingdom into somewhat unpredictable territory.

The young prince recently revealed himself further with a lengthy interview he granted The Economist - a stark departure from the Saudi royal tradition of delivering terse public statements to tightly controlled state-owned media. He spoke relatively freely about his desire to liberalize the economy and defended his country's policies toward Iran. However, the prince downplayed his role in building a more aggressive Saudi policy, stressing that the kingdom is "a country of institutions," where relevant ministries provide information to a king who makes the final decisions.

This is perhaps too generous a description for Saudi politics. After all, Saudi Arabia is better known for its emphasis on family and tribal politics than for its institutional maturity. However, there is certainly more driving the kingdom's actions than a novice prince with an appetite for risk.

An Uneven Playing Field

When you look at a map of the Middle East, three geographic features stand out: the Anatolian land bridge, the Iranian plateau and the Arabian Peninsula. Not coincidentally, these formations constitute the three most active powers in the Middle East today: Turkey, Iran and Saudi Arabia. But Saudi Arabia doesn't have the historical prestige Turkey and Iran do. The Turks and Persians were able to create unique civilizations and vast empires from their well-defined and buffered cores. Access to resources, popular trade routes and heavy migratory traffic gave rise to large populations and a working class. Institutions were created and refined over time to manage its citizens, its national defense and its commercial interests.

The Arabian Peninsula's story is quite different. Until oil was discovered in the 1930s, the harsh and barren landscape forming the core of the peninsula was home to only a small number of desert nomads who would survive off the camel caravan trade and raids on small oasis towns controlled and fought over by competing tribes. It was a simple, independent and rather unambitious life in this forbidding interior.

As T.E. Lawrence described in the early 20th century:

The Bedouin of the desert had been born and had grown up in it, and had embraced this nakedness too harsh for volunteers with all his soul, for the reason, felt but inarticulate, that there he found himself indubitably free ... in his life he had air and winds, sun and light, open spaces and great emptiness. There was no human effort, no fecundity in nature: just the heaven above and the unspotted earth beneath. There unconsciously he came near to God ... the Bedouin could not look for God within him: he was too sure that he was within God. He could not conceive anything which was or was not God. He alone was great, and yet there was a homeliness, an everydayness of this climactic Arab God, who was their eating and their fighting and their lusting, the commonest of their thoughts, their commonest resource and companion. ... They felt no incongruity in bringing God into their weaknesses and appetites, and invoked his name in the least creditable causes. He was the commonest of their words: and indeed we lost much eloquence by making him the shortest and ugliest of our monosyllables.

Lawrence, arguably the ultimate romanticist when it came to Bedouin life, elegantly articulates the deep religiosity in Arabia that so deeply unnerves observers in the West. It was in the upland region of the Najd - in the center of the arid peninsula, with the inhospitable al Nafud desert to the north, the Rub al Khali (or "Empty Quarter") to the south and the Hijaz Mountains to the west - where the austere Sunni sect of Wahhabism took root. This sect created a religious platform for the House of Saud to eventually carve out a state through conquest. The Najd-rooted state would include the more cosmopolitan Hijaz region - an area vital to trade and containing the holy cities of Mecca and Medina - and the fertile oasis area of Qatif and al Ahsa in eastern Arabia, where a Shiite-majority population stretches into Bahrain.

Internalizing the Iranian Threat

This historical backdrop informs much of Saudi Arabia's current behavior. The 84-year-old kingdom has been resilient in the face of jihadist rebellion, oil crashes and invasions of Kuwait and Iraq in decades past, but it is also very uneasy. Oil is the House of Saud's primary means of taming unrest at home and buying influence - and security - abroad. The majority of that oil lies in Eastern Province, where the demographic balance shifts in favor of the Shiites. The problem for Saudi Arabia is that it cannot be reasonably confident in its own military capabilities to defend those oil assets from interested parties in Tehran.

The Saudi royals remember well the last time Washington tried to work with Iran and Saudi Arabia simultaneously to manage the Middle East. During U.S. President Richard Nixon's administration, this was known as the "Twin Pillars" policy, but the Saudi royals knew that they were second-class allies to the White House compared to the Shah's Iran. In fact, Iran used its close relationship with the U.S. administration to present itself as the defender and U.S. military partner for all Gulf oil interests. From the Saudi perspective, this created the possibility that Washington would turn a blind eye and give Tehran implicit support to take control of the Arabian shore of the Persian Gulf. Today, Saudi Arabia can take comfort in the knowledge that the mullahs' Iran will not have nearly as close a relationship with the White House as the Shah's Iran. However, especially in light of the Iranian nuclear agreement, the Saudis also have to think longer term about the potential for politics to evolve in Tehran and for a deeper rapprochement to develop between Riyadh's primary security guarantor and its primary adversary. Moreover, Iran's covert arm will pose a more serious threat to Saudi interests - particularly in sensitive sectarian zones - once Tehran is no longer bound by sanctions.