Other then creating a constitutional monarchy with a Prime Minister and such here is a system I am just brainstorming. My idea would be to create a 2 House System with a Court of Islamic Scholars.
The Upper House would be called the House of Saud. Make them kind of like the House of Lords but each one has a vote on who will be King. Each of the 100 something heirs to the throne as well as representatives of all of the major Saudi families have representation in this house. They don't create the laws but only accede their legitimacy. This would kind of be like the Diet in Japan. Maybe they could have a "Islam Legitimacy Veto" where laws that are against Islam would be passed on to the Court of Islamic Scholars for review.
The Lower House would be called the House of the People. They will be the legislative branch of government elected by local election and serve 6 year terms. They will create the laws and vote on them and pass them up the line. They would also be responsible for setting the budget and appropriating money for defense. They are also in charge of handing out oil wealth by overseeing the Oil Ministry. Also the Oil Ministry is Audited every year by an outside firm to make sure no-one is stealing from it. You can make it a Senate system where each region has like 5 House members or maybe a weighted representative system depending on population.
The Court of Islamic Scholars would be a separate body that would interpret laws and make sure that they are following the structures of Islam. Their veto can only be overturned by a Super-majority of both the House of Saud and the House of the People. You could either have them vetted by the House of Saud or have them elect their own members in a totally transparent process.
This Court would be the authority in all non-secular matters and be an engine for advanced Islamic thought. Kind of like the Brain-trust for the Islamic World. Their job is to be a counterweight against the Madrassas and other radical Islamic groups that misinterpret the Koran. These guys would be the best and the brightest the Islamic world has to offer and they can even invite members of other Islamic countries to join them. These Honored Men would become Saudi Citizens after a certain period of service to the Court but in the meantime they would not be able to vote. Being appointed to this body will be one of the greatest honors you can bestow in the Islamic World. Its Council of Elders would be the most learned, respected and pious men in all of the Islam. They would also be responsible for all Holy Sites in Saudi Arabia and have their headquarters in Mecca.
Finally, instead of a Hereditary King you would have an elected post. The House of Saud would vote for the King with each of its members getting one vote. The King would serve for 8 years and can run for another 8 year term. After that he would retire from public life but may be able to rejoin the House of Saud. The King can also come from another royal house or even be a commoner depending on who the House of Saud Picks. Then the Upper House would have its name changed to that persons name. So if the Kings family name is Bin-Ali the name would be changed to the House of Bin-Ali.
The post of King would not just be ceremonial but instead be the face of Saudi Arabia to the world. He would be in charge of foreign affairs, the economy (through an Islamic Central Bank,) the intelligence forces (who cannot be used domestically for anything except for counter-terrorism,) and be Commander and Chief of the armed forces. Of course declaring war would have to be a vote from the King, the House of Saud and the House of the People. The King can be deposed with a super-majority of both houses. Also the Court of Islamic Scholars can bring a no confidence motion against the King (but cannot directly depose him) if he acts in a manner that is against Islam. That would be a grave censure that most Kings would immediately resign rather then have this black mark upon their resume.
I'm sure there are all sorts of problems lurking in these ideas but it would be an interesting thing to see a bunch of Saudi Citizens with those purple fingers saying that they have voted. I also would love to see one body in charge of the more intellectual aspects of Islam. That body, if given enough weight in the Muslim World, might even see Sunni and Shia heal their centuries old rift. I mean if you get enough respected thinkers in one place anything would be possible.
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