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The Kingdom is one of the world's most religiously conservative societies,
and its identity is closely bound to its religious links, especially its position as the
guardian of Islam's two holiest sites. Charitable giving, or zakat, is one of the five
pillars of Islam. It is broader and more pervasive than Western ideas of charity--
functioning also as a form of income tax, educational assistance, foreign aid, and
a source of political influence.The Western notion of the separation of civic and
religious duty does not exist in Islamic cultures. Funding charitable works is an
integral function of the governments in the Islamic world. It is so ingrained in
Islamic culture that in Saudi Arabia, for example, a department within the Saudi
Ministry of Finance and National Economy collects zakat directly, much as the
U.S. Internal Revenue Service collects payroll withholding tax. Closely tied to
zakat is the dedication of the government to propagating the Islamic faith, par-
ticularly the Wahhabi sect that flourishes in Saudi Arabia.
Traditionally, throughout the Muslim world, there is no formal oversight
mechanism for donations. As Saudi wealth increased, the amounts contributed
by individuals and the state grew dramatically. Substantial sums went to finance
Islamic charities of every kind.
While Saudi domestic charities are regulated by the Ministry of Labor and
Social Welfare, charities and international relief agencies, such as the World
Assembly of Muslim Youth (WAMY), are currently regulated by the Ministry
of Islamic Affairs.This ministry uses zakat and government funds to spread Wah-
habi beliefs throughout the world, including in mosques and schools. Often
these schools provide the only education available; even in affluent countries,
Saudi-funded Wahhabi schools are often the only Islamic schools. Some
Wahhabi-funded organizations have been exploited by extremists to further
their goal of violent jihad against non-Muslims. One such organization has
been the al Haramain Islamic Foundation; the assets of some branch offices have
been frozen by the U.S. and Saudi governments.
Until 9/11, few Saudis would have considered government oversight of
charitable donations necessary; many would have perceived it as interference
in the exercise of their faith. At the same time, the government's ability to
finance most state expenditures with energy revenues has delayed the need for
a modern income tax system.As a result, there have been strong religious, cul-
tural, and administrative barriers to monitoring charitable spending. That
appears to be changing, however, now that the goal of violent jihad also extends
to overthrowing Sunni governments (such as the House of Saud) that are not
living up to the ideals of the Islamist extremists.
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The leaders of the United States and the rulers of Saudi Arabia have long
had friendly relations, rooted in fundamentally common interests against the
Soviet Union during the Cold War, in American hopes that Saudi oil supplies
would stabilize the supply and price of oil in world markets, and in Saudi hopes
that America could help protect the Kingdom against foreign threats.
In 1990, the Kingdom hosted U.S. armed forces before the first U.S.-led war
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