The Modern history of
Saudi Arabia begins with the unification of Saudi Arabia in a single kingdom in 1932.
Abdul Aziz's military and political successes were not mirrored economically until vast reserves of oil were discovered in
1938 in the Al-Hasa region along the
Persian Gulf coast. Prior to the discovery of oil, the main source of income for the government depended on the pilgrimage to
Mecca, which was around
100,
000 people per year in the late
1920s.
In the 1930s, Abdul Aziz granted an economic concession to the
Standard Oil Company of California to drill for oil in his kingdom, after oil was found in nearby
Bahrain in 1932. Oil wells were constructed in
Dhahran in the late 1930s, and by
1939, the kingdom began to export oil.
During and after
World War II, production of
Saudi oil expanded, with much of the oil being sold to the
Allies. Aramco (the
Arabian American Oil Company) built an underwater pipeline to Bahrain to help increase oil flow in
1945. Between 1939 and
1953, oil revenues from Saudi Arabia increased from $7 million to over $
200 million, and the kingdom began to be entirely dependent on oil income.
Abdul Aziz died in 1953. Only sons of Abdul Aziz have, to date, ascended the Saudi throne. The number of children that he fathered is unknown, but it is believed that he had 22 wives and 37 sons, of whom five have become
King. Prior to his death, he chose
Saud as his immediate successor.
King Saud succeeded to the throne on his father's death in 1953. Oil provided Saudi Arabia with economic prosperity and a great deal of political leverage in the international community. The sudden wealth from increased production was a mixed blessing. Cultural life rapidly developed, primarily in the Hejaz, which was the center for newspapers and radio, but the large influx of foreigners increased the pre-existing propensity for xenophobia. At the same time, the government became increasingly wasteful and lavish.
Despite the new wealth, extravagant spending led to governmental deficits and foreign borrowing in the
1950s.
However, by the early
1960s an intense rivalry between the King and his half-brother,
Prince Faisal emerged, fueled by doubts in the royal family over Saud's competence. As a consequence, Saud was deposed in favor of Faisal in 1964.
The mid-1960s saw external pressures generated by Saudi-Egyptian differences over
Yemen. When civil war broke out in 1962 between Yemeni royalists and republicans,
Egyptian forces entered Yemen to support the new republican government, while Saudi Arabia backed the royalists. Tensions subsided only after 1967, when
Egypt withdrew its troops from Yemen.
Saudi forces did not participate in the
Six-Day (Arab-Israeli) War of June 1967, but the government later provided annual subsidies to Egypt,
Jordan, and
Syria to support their economies.
In
1965 there was an exchange of territories between Saudi Arabia and Jordan in which Jordan gave up a relatively large area of inland desert in return for a small piece of seashore near
Aqaba.The
Saudi-Kuwaiti neutral zone was administratively partitioned in
1971, with each state continuing to share the petroleum resources of the former zone equally.
The
Saudi economy and infrastructure was developed with help from abroad, particularly from the
United States, creating strong links between the two dissimilar countries, and considerable and problematic
American presence in the
Kingdom. The Saudi petroleum industry under the company of
ARAMCO was built by American petroleum companies,
U.S. construction companies such as Bechtel built much of the country's infrastructure,
Trans World Airlines, built the Saudi passenger air service; the
Ford Foundation modernized
Saudi government; the
U.S. Army Corps of Engineers built the country's television and broadcast facilities and oversaw the development of its defense industry.
During the
1973 Arab-Israeli war, Saudi Arabia participated in the
Arab oil boycott of the United States and
Netherlands. A member of the
Organization of Petroleum Exporting Countries (
OPEC), Saudi Arabia had joined other member countries in moderate oil price increases beginning in 1971. After the
1973 war, the price of oil rose substantially, dramatically increasing Saudi Arabia's wealth and political influence.
Faisal was assassinated in
1975 by his nephew, Prince
Faisal bin Musa'id.
- published: 22 May 2015
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