Crossroads of the Middle East: Iran’s Ideology vs. Saudi Arabia’s Reform

By Dr. Tim Orr

Imagine two nations, each claiming the mantle of Islamic leadership in the Middle East yet moving in polar opposite directions. On one side is Iran, where the legacy of the 1979 revolution still dictates every aspect of life, embedding religious law into politics, economics, and personal freedoms. On the other is Saudi Arabia, a nation once synonymous with rigid conservatism, now attempting a bold reinvention under Crown Prince Mohammed bin Salman's (MBS) leadership. Iran, governed by the strict ideology of Ayatollah Khomeini, remains bound to theocratic control and international isolation. At the same time, Saudi Arabia races forward with sweeping reforms, opening cinemas, lifting bans, and envisioning a future beyond oil dependency.

What’s at stake in this dramatic divergence? These two nations are setting up contrasting models for governance and modernity in the Muslim world. One clings to a past anchored in revolutionary ideals; the other, though still authoritarian, has chosen a path toward globalization and transformation. In the unfolding story of Iran and Saudi Arabia, the stakes are high, and the choices they make today are shaping not only their futures but also the entire Middle East. Join us as we dive deeper into how these nations’ differing visions reveal a world between tradition and progress.

How Iran Changed Under Khomeini

When Khomeini came to power in 1979, he envisioned a pure, Islamic state guided by religious principles. His rule instituted Wilayat al-Faqih, or Guardianship of the Jurist, which placed ultimate authority in a religious figure—the Supreme Leader—over political and judicial affairs. While Khomeini aimed to establish a devout society based on Islamic values, his approach led to strict controls and many unintended consequences that impact Iranians today.

The Grip of Theocracy:
Iran’s system of governance, centered on Wilayat al-Faqih, gives incredible power to religious leaders, limiting the role of elected officials and making it difficult for reformists to gain any real traction. While Iran holds presidential elections, the Supreme Leader and conservative clerics hold most of the power, and only candidates vetted by the ruling clergy can run. Over time, this strict control has led many Iranians, especially young people, to feel disconnected from a government that prioritizes ideology over their needs and aspirations.

Tight Social Restrictions:
Khomeini’s regime imposed strict dress codes, mandatory for women, and cracked down on personal freedoms. While women had previously been making strides in public life, Khomeini’s laws reversed much of this progress. These restrictions remain, despite the resistance of many Iranian women and younger generations. Even today, morality police enforce dress codes and social norms, creating an atmosphere where people feel the weight of state surveillance in their daily lives.

Economic Isolation and Stagnation:
Iran’s economy has long struggled under the weight of international sanctions, particularly due to its nuclear program. These restrictions have crippled oil exports and contributed to severe inflation, making it challenging for ordinary Iranians to make ends meet. Although Khomeini’s vision was to build an economically self-sufficient Islamic society, Iran’s focus on ideological purity and isolation has left it economically underdeveloped, unable to leverage its educated workforce and natural resources fully.

Aggressive Foreign Policy and Regional Tensions:
Khomeini’s Iran also pursued influence abroad, supporting groups like Hezbollah in Lebanon and Shiite militias in Iraq. By backing these groups, Iran seeks to extend its influence in the region and counterbalance rival Saudi Arabia. Yet this strategy has led to economic and political costs, fueling tensions with neighboring Sunni-majority countries. This outreach has also isolated Iran internationally, leaving it as an outlier in the region, especially compared to Saudi Arabia's westward-looking ambitions.

Resistance to Reform:
While reformist leaders like Mohammad Khatami and Hassan Rouhani have attempted to loosen restrictions and foster a more open economy, conservative factions who prefer the status quo have largely blocked their efforts. This cycle of hope and disappointment has left many Iranians increasingly frustrated with their government and skeptical that meaningful change is possible.

Saudi Arabia’s Progressive Pivot Under MBS

Under MBS, Saudi Arabia has taken a notably different path from Iran. Recognizing the limitations of its oil-based economy and the need to open up to the world, MBS has embarked on a series of social and economic reforms under the Vision 2030 plan. His approach blends selective modernization with a controlled loosening of cultural restrictions.

Easing Social Norms:
Saudi Arabia was once infamous for its ultra-conservative restrictions, especially regarding women. However, MBS has lifted some of these restrictions, allowing women to drive, work in more fields, and travel without a male guardian. This marked a significant cultural shift in a country where women’s freedoms were previously limited. While MBS’s reforms are not universally accepted, especially by more conservative Saudis, they have gained broad support among young Saudis eager for change.

Economic Reforms and Vision 2030:
Vision 2030 is MBS’s ambitious roadmap for moving Saudi Arabia from relying on oil by fostering tourism, technology, and finance sectors. High-profile projects like NEOM, a futuristic megacity, are part of this plan to attract international investment and create jobs. However, while these projects are bold and futuristic, they also raise questions about their feasibility and the challenges of making such a radical economic transformation.

Broadening Cultural Life:
Alongside economic changes, MBS has relaxed cultural restrictions, allowing cinemas, concerts, and international events to occur. These moves aim to improve quality of life, attract tourism, and redefine Saudi Arabia’s global image. This cultural shift reflects MBS’s efforts to present Saudi Arabia as a welcoming, open nation while carefully controlling the pace of change to minimize backlash from conservative factions.

Firm Political Control and Quashing Dissent:
While MBS has introduced a range of progressive reforms, he has also taken a hardline stance against dissent. Prominent activists, journalists, and even royal family members who opposed his policies have faced harsh punishment. Internationally, the killing of journalist Jamal Khashoggi in 2018 has highlighted the limits of MBS’s tolerance for opposition. By consolidating power, MBS tries to ensure reforms move forward without significant resistance, but this approach has drawn international criticism.

Diplomatic Shifts:
MBS has sought to balance Saudi Arabia’s relationships with major powers, strengthening ties with the U.S. while pursuing economic partnerships with China and Russia. He’s also pursued a more diplomatic approach in the region, working toward reconciliation with Qatar and seeking to lower tensions with Iran. These moves are part of a broader strategy to position Saudi Arabia as a stabilizing force and an influential player in the Middle East.

Comparing Ideological Rigidity and Pragmatic Reform

The paths Iran and Saudi Arabia have taken could not be more different. Iran’s government has clung tightly to the ideological framework Khomeini established in 1979, while Saudi Arabia has shown a willingness to evolve and adapt. This difference shows in their respective societies: Iran remains socially conservative, economically limited, and globally isolated, while Saudi Arabia cautiously embraces a more open society and a diversified economy.

Iran’s Current Challenges:
Iran faces growing challenges as its people, particularly its youth, become increasingly disillusioned with the restrictions imposed on them. Economic hardship, social repression, and political stagnation have fueled periodic uprisings and calls for reform. While the government remains resistant, Iran’s internal divisions suggest a country at odds with itself, caught between a desire for modernity and a system rooted in revolutionary ideals.

Saudi Arabia’s Balancing Act:
Saudi Arabia’s situation is more hopeful, though it is not without its difficulties. MBS’s reforms have been broadly popular, yet his consolidation of power has stifled political freedom. Additionally, Saudi Arabia’s reliance on oil revenue remains vulnerable, especially as it seeks to transform its economy. Nevertheless, the progress made in recent years has placed Saudi Arabia on a path that, if successful, could set a new standard for modernization in the region.

The Future of These Two Nations

Looking ahead, Iran's and Saudi Arabia's futures will likely continue along these distinct paths. Iran’s government seems more concerned with maintaining ideological purity than addressing its citizens’ demands, potentially deepening internal divisions. Saudi Arabia, under MBS’s strategic vision, may continue its journey toward a more open and economically diversified society. The contrasting models of Iran’s strict theocracy and Saudi Arabia’s controlled modernization will shape their societies and the broader region in years to come.

Iran’s and Saudi Arabia’s journeys reveal two dramatically different approaches to governance, ideology, and modernization. Iran clings to Khomeini’s revolutionary legacy, while Saudi Arabia, under MBS, is charting a future that blends tradition with pragmatic reform. Both paths come with their risks and rewards, but only time will tell how each nation’s choices will impact its people, the Middle East, and the world.

Tim Orr is a scholar, Evangelical minister, conference speaker, and interfaith consultant with over 30 years of experience in cross-cultural ministry. He holds six degrees, including a master’s in Islamic studies from the Islamic College in London. Tim taught Religious Studies for 15 years at Indiana University Columbus and is now a Congregations and Polarization Project research associate at the Center for the Study of Religion and American Culture at Indiana University Indianapolis. He has spoken at universities, including Oxford University, the University of Tehran, and mosques throughout the U.K. His research focuses on American Evangelicalism, Islamic antisemitism, and Islamic feminism, and he has published widely, including articles in Islamic peer-reviewed journals and three books.