Saudi Arabia to bury King Abdullah on Friday

(Reuters) - Saudi Arabia will bury King Abdullah in an unmarked grave on Friday, hours after it moved to ensure a smooth transition by appointing a new king and crown prince to quell fears of dynastic instability at a time of regional turmoil.

Abdullah's successor, King Salman, now takes over as the ultimate authority in a country that faces unprecedented tumult in the region and difficult long-term domestic challenges compounded by the plunging price of oil.

Salman must navigate a white-hot rivalry with Shi'ite Muslim power Iran playing out in Iraq, Syria, Yemen, Lebanon and Bahrain, open conflict in two neighboring states, a threat from Islamist militants and bumpy relations with the United States.

Reputedly pragmatic and adept at managing the delicate balance of clerical, tribal, royal and Western interests that factor into Saudi policy making, Salman appears unlikely to change the kingdom's approach to foreign affairs or energy sales.

But by immediately announcing the appointment of his youngest half-brother Muqrin bin Abdulaziz as Crown Prince, King Salman decisively moved to end speculation about the direction of the royal succession and splits in the ruling family.

Many Saudis in a country with a young population will be unable to recall a time before King Abdullah's rule, both as monarch from 2005 and as de facto regent for a decade before that.

His legacy was an effort to overhaul the kingdom's economic and social systems to address a looming demographic crisis by creating private sector jobs and making young Saudis better prepared to take them.

"I think (Salman) will continue with Abdullah's reforms. He realizes the importance of this. He's not conservative in person, but he values the opinion of the conservative constituency of the country," said Jamal Khashoggi, head of a news channel owned by a Saudi prince.

Oil prices jumped on Friday as news of Abdullah's death added to uncertainty in energy markets already facing some of the biggest shifts in decades. [O/R]   Read More 

Saudi King Abdullah dies, new ruler is Salman