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Developments in Iran and the Middle East, together with Saudi doubts about Washington's ultimate commitment to the defence of the regime, have impelled the Kingdom to put its military expansion plans into top gear. A very high level of defence spending is one of the few certainties about the next Five-Year Development Plan, and again US contractors can be expected to win most of the work.

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Although the South Koreans are passing through a particularly painful phase of economic readjustment, including a sharp shift away from their previous export mania, the Seoul government has acted swiftly and with apparent success to reassure the Saudis of its commitment to the Kingdom's public housing program, in which South Korean construction firms enjoy a position of lucrative domination.