Article: Desert Shock: Saudis Are Cash-Poor; Gulf War, Lavish Spending Leave Oil Giant Facing Painful Choices

When Iraqi tanks rumbled into position along the Kuwaiti border earlier this month, Saudi Arabian government and business leaders joked darkly that they couldn't decide which posed the greater threat: the return of Saddam Hussein's Republican Guard or paying for all the tanks and troops President Clinton sent to chase the Iraqis back across the sands.

Despite its prosperous image, this oil-rich desert kingdom is painfully strapped for cash. Saudi Arabia's treasury, which swelled to legendary proportions in the 1970s, has been depleted by falling oil prices, relentless budget deficits and the staggering cost of the 1991 Persian Gulf War.

Saudi rulers, who bankrolled a desert agricultural ...

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