Dr. Hala bint Diab Almutairi, Secretary-General of the Saudi Historical Society, said Imam Muhammad bin Saud’s experience shows that economic recovery in the first Saudi state was inseparable from social and political reforms.
She emphasized that security was a critical factor in later prosperity, especially in agriculture, which was the backbone of the state’s early economy.
In an interview with Asharq Al-Awsat, Al-Mutairi explained that the first Saudi state was created in central Arabia during a period of deep political and economic division. Before its establishment, Najd was divided between competing local factions, with no central authority capable of maintaining order or protecting the public interest.
This instability has weighed heavily on economic life. Agriculture and trade declined due to frequent conflicts, attacks, and highway robbery. The caravan was endangered and commercial links between Najd and neighboring regions weakened. Economic activity was limited and unregulated, and in the absence of organized financial structures or reliable public revenues, residents relied primarily on modest individual efforts to support themselves.
Security first
When Imam Muhammad bin Saud assumed the leadership of Diriyah, he recognized that a durable state could not be built without security and disciplined management of resources. He sought to strengthen his authority in the surrounding area, secure trade and pilgrimage routes, and protect his caravans from attack.
As order was restored, confidence returned to Najd’s trade routes, many of which had been abandoned or considered unsafe. Merchants resumed overland travel, stimulating internal trade and strengthening links with other parts of the Arabian Peninsula.
Mr. Al-Mutairi noted that the security implications are particularly pronounced in agriculture. Diriyah and Wadi Hanifa experienced significant agricultural expansion once stability took hold. Production of staple crops such as grains, dates, and vegetables increased, strengthening the food supply for the population.
Farmers were encouraged to reclaim land, improve irrigation systems, and adopt better cultivation methods. A degree of self-sufficiency has been achieved and dependence on imports has decreased. Agricultural surpluses supported local markets, provided food for caravans, and strengthened economic ties between settled communities and surrounding tribes.
Diriyah’s commercial rise
As agricultural production increased, Diriyah’s market flourished and became one of the most important commercial centers in Najd. Merchants from across the region gathered at the market to exchange local produce, handicrafts, and imported goods.
Along with trade, the craft industry also expanded. Carpentry, blacksmithing, and agricultural tool manufacturing created new employment opportunities and improved living standards. The market also served as a center for social interaction and knowledge exchange, enhancing Diriyah’s status as both an economic and cultural center.
Al-Mutairi pointed out that the Saudi First State’s financial system is characterized by simplicity, organization and adherence to Islamic principles. Revenues were derived primarily from zakat and charitable donations, which were collected and managed in an orderly manner. Additional income was obtained from modest market levies, agricultural production, trade activities, and resources from territories under the jurisdiction of state power.
This system avoided excessive taxation and reduced the excessive burden on merchants and residents. At the same time, it provided enough revenue to fund administration and defense, maintain public order, and ensure a degree of financial stability. This balance strengthened public trust in the emerging nation.
Economic policy as a national strategy
Financial stability has enabled Imam Mohammed bin Saud to invest in infrastructure and security. Roads were secured and maintained, markets developed, and agriculture supported. Importantly, political expansion was pursued without depleting local resources or undermining economic vitality.
The resulting prosperity has had tangible social impacts. Standards of living improved, conflicts over resources decreased, and bonds between tribes and Diriyah people strengthened. Economic power also strengthened political authority, making it possible to gradually expand territory without relying exclusively on military power.
According to Al-Mutairi, the experience highlighted how closely economic development is intertwined with social cohesion and political stability. As agriculture expanded and markets flourished, social solidarity deepened and loyalty to the state grew.
Diriyah’s strategic location along Wadi Hanifa further contributed to its success. While the valley supported agricultural activities, its location along caravan routes linked domestic markets to broader regional networks. The steady movement of goods and capital created jobs and strengthened Diriyah’s role as the Arabian Peninsula’s major economic center.
Build trust between the state and society
Al-Mutairi stressed that examining the economic foundations of the first Saudi state during the reign of Imam Mohammed bin Saud reveals the central role of economic management in nation-building.
Security, agricultural growth, active markets, and organized financial management collectively promoted social and political stability. Balanced economic policies have laid the foundations for sustainable development while addressing immediate challenges.
By promoting the values of work and productivity and linking economic discipline to religious and ethical principles, commercial transactions became more regulated. Fraud and monopolistic practices have decreased, and social solidarity has been strengthened through predictable zakat collection and fair distribution. People with means helped the poor, inequality narrowed, and social tensions eased.
This framework fostered mutual trust between merchants, communities, and nations. Clear and understandable economic regulations encouraged broad participation in productive activities and expanded the state’s economic base.
Al-Mutairi added that these policies are not just a means to increase revenue, but to build a cohesive society and resilient economy. During the Saudi state’s formative years, political and economic stability were not separate trajectories, but mutually reinforcing pillars that ensured the state’s permanence.
