Women participated and voted in Chamber of Commerce election for first time in Kingdom’s history 28 November. Saudi Arabia became 149th member of World Trade Organisation after 12 years of talks. U.S. added country to list of violators of religious freedoms.

King  Abdullah  named  Prince  Bandar, former Saudi ambassador to U.S., as Secretary-General of new National Security Council. NSC to have wide-ranging powers to protect Saudi Arabia’s political,  economic, military, security and social interests.

Third most-wanted militant, Zaid Saad Zaid al-Samari, killed in clash with police in Dammam. U.S. allowed country 6-month extension to show improved treatment of religious minorities.

Security forces killed al Qaeda leader in Saudi Arabia, Saleh Awfi, in Medina clash. Saudi police killed 3 others, arrested 41 in series of raids in Riyadh and Medina. U.S. briefly closed embassy and consulates in response to terror threat: UK, Australia warned of possible attacks. New King Abdullah assumed crown following 1 August death of King Fahd; pardoned 5 political activists jailed for demanding democratic reforms and agreed to free 1,200 Yemenis imprisoned on various charges.

After long illness King Fahd died 1 August; replaced by his brother, Crown Prince Abdullah, de facto ruler for last decade: Prince Sultan named new Crown Prince. Alleged local al Qaeda head al-Hayyari shot dead by security forces, 3 July; 8 suspected militants arrested 14 July. Over 100 high-profile men issued statement opposing women driving. Court of appeals upheld long prison sentences against 3 reformers: al-Hamad, al-Doumaini, and Faleh.

Interior minister dismissed call by Mohammad al-Zulfa, member of Shura Council, for lifting of ban on women drivers. Authorities released new list of most wanted terrorists; 21 of 36 names believed to be "abroad", but no suggestion from government as to where. Al-Qaeda chief in Iraq, Abu Musab al-Zarqawi, reportedly declared key Saudi militant killed in U.S. airstrike there.

Continued clashes between police and militants. Riyadh gunfight 10 May after police discovered explosives in car, led to arrest of suspected militant. Protests took place in reaction to Newsweek report on U.S. desecration of Koran, later retracted. Government rejected estimates 2,500-3,000 Saudis in Iraq. Concern as King Fahd admitted to hospital 27 May

Security forces clashed repeatedly with Islamist militants: gunbattle in northern town of al-Ras reportedly left 14 militants dead, including Abdulkarim al- Mejjati, alleged mastermind of May 2003 Casablanca bombings; shootout in Mecca 21 April killed 2 militants and 2 policemen. Meanwhile, final round of voting in municipal elections took place 21 April. Candidates backed by clerics, including the controversial Safar al-Hawali, swept to victory in Jeddah; moderate Islamist candidates won all seats in every major Saudi city.

Second phase of municipal council elections – held in eastern and southern provinces – passed off well, with strong turnout and campaigning. Shiites won all seats in Qatif stronghold. First round held 10 February in Riyadh; next set for 21 April in west.

In tentative step forward for democracy, first round of municipal elections passed off 10 February, with good turnout and interest, but ban on women voting and complaints some candidates had formed unfair alliance: candidates backed by clerics won 6 of 7 seats in Riyadh. Further rounds set for March and April. Prince Saud al-Faisal said women might be given vote in next elections. Trial of three democracy advocates postponed after they rejected closed trial.