Earlier quoted context omitted.
According to Hillary Clinton, Saudi Arabia is a kingdom.
The conventional long-form name of Saudi Arabia is "Kingdom of Saudi Arabia". This isn't some thing that Clinton made up, and I'm not sure why it's relevant to mention her. The country is referred to as "The Kingdom" by many. Of course, that doesn't preclude it being a dictatorship, as the two are not mutually exclusive. Did I just miss an attempt at sarcasm, here?
That was her response to a dig about why we're not pushing for democracy in Saudi Arabia. It was her way of saying they don't need democracy.