Richard Beeston, Times Diplomatic Editor, examines the legacy of King Fahd of Saudi Arabia, who died this morning at a hospital in Riyadh

How will King Fahd be remembered? What is his legacy?

King Fahd will be remembered as the ruler who steered Saudi Arabia through a period of extraordinary change. He used the country's huge oil wealth to transform the nation, building modern cities and establishing high tech infrastructure while safeguarding the country's conservative religious foundations.

Fahd established himself as an active player in international affairs. He launched a peace effort in the early 1980s, effectively calling for a two state solution to the Israeli-Palestinian conflict, which was rejected by Arab leaders at the time but has since been broadly accepted as the main hope for a peaceful settlement.

His greatest legacy in foreign affairs was his strengthening of strategic ties with the United States. He joined with Washington in helping to support the mujahideen in Afghanistan fighting Soviet occupation. He supported Saddam Hussein during his war with Iran.

Notably, he allowed hundreds of thousands of US-led forces to deploy in Saudi Arabia before driving Iraqi forces out of Kuwait in 1991. This ultimately led to the difficulties that Saudi Arabia is facing today from Osama bin Laden's al-Qaeda movement, which is violently opposed to the country's strong links to the West. While the crisis was partly of his making, King Fahd was spared having to tackle the problem. He suffered a stroke 10 years ago and effectively surrendered day to day running of the country to his half-brother.

What are the implications of Crown Prince Abdullah's appointment as monarch?

Crown Prince Abdubllah has been the de facto ruler of Saudi Arabia for the past decade. The succession will be smooth and policy is likely to remain unchanged. That means that the authorities will continue to battle al-Qaeda insurgents and push through modest political reforms. Fortunately for the ruling family, the high oil price has given them the funds necessary to tackle social problems.

The real challenge facing the Saudi royal family is the next generation of leaders. Crown Prince Abdullah and his designated successor Prince Sultan, the current Defence Minister, are both in their eighties. While the House of Saud has defied its critics and remains firmly in control of the Kingdom's affairs, it nevertheless faces huge challenges in reforming a deeply conservative Islamic state in a region where change is moving at a dizzying pace.

Who is next in line? Is that clear yet?

Prince Sultan, the long-serving Defence Minister and brother of King Fahd, has been named as the next Crown Prince. He has overseen the build-up of the Saudi armed forces, where he has strong allegiance. But because of his advanced years it is not clear whether he will ever ascend to the throne.

What does the future hold for Saudi Arabia?

For the immediate future the House of Saud seems secure. The terrorist attacks that have shaken the kingdom appear for now to be under control. Al-Qaeda activisits have been killed or arrested and the Royal Family has closed ranks. Relations with America, which hit an all-time low after the September 11 attacks, when it emerged most of the hijackers were Saudi nationals, have been repaired.

But serious challenges remain. What will happen when the estimated hundreds and maybe thousands of battle-hardened Saudi jihadis return home from Iraq, threatening to bring the war home with them? How can Saudi maintain an absolute monarchy and a strict Islamic code in the face of dramatic changes in the Arab world where democratic elections are taking place and previously taboo issues are now openly discussed on Arab news channels? How much longer can men in their eighties, who grew up in a deeply tribal and traditional society, cope with the demands of a fast growing young generation, many of them educated in the West?

Times Recommends

• Rio Tinto four held as China prepares case
• Diplomats must keep heads down and trousers up
• When in Rome should one make like Berlusconi?