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Since the frontier between Saudi Arabia and Oman had never been demarcated and there was the possibility of discovering oil in the area, in 1952 Saudi Arabian forces occupied the oasis of Al-Buraymī, which Britain felt belonged to Oman and the emirate of Abu Dhabi (Abū Ẓabī)—both of which enjoyed British protection. In July 1954 the British and Saudi governments agreed to submit the dispute to an arbitration tribunal. It convened in Geneva in September 1955, but the negotiations broke down, and British-officered forces from Oman and Abu Dhabi reoccupied the oasis. During the Suez Crisis in 1956, Saudi Arabia broke off relations with Britain, and they were not reestablished until 1963. In September 1961, following the Iraqi claim to sovereignty over Kuwait, Saudi Arabia sent troops to Kuwait in response to a request from its ruler.
Since World War II the United States had become the most influential foreign power in Saudi Arabia. American interest was directed toward the oil industry, which was owned by U.S. companies. In 1960 Saudi Arabia helped found the Organization of the Petroleum Exporting Countries (OPEC). The Saudis favoured the United States in the Cold War with the Soviet Union, but they opposed American support of Israel.
As a result of the rise to power of Egypt’s Pan-Arab nationalist president Gamal Abdel Nasser, Saudi relations with Egypt were often strained. Egyptian propaganda made frequent attacks on the Saudi system of royal government. When Egyptian troops were sent to North Yemen in 1962, tension between Saudi Arabia and Egypt became more acute. The Saudis helped the Yemeni royalists against the Egyptian-backed Yemen republic. King Faisal ultimately agreed to assist Egypt with financial aid, provided Nasser withdrew his troops from Yemen.
Faisal, leader of the largest conservative Arab state, continued to warn against the danger of communist influence in Arab and Muslim countries. Saudi Arabia also acted against the United States, however, as a result of U.S. assistance to Israel during the Arab-Israeli war of 1973. The Saudis and other Arab oil producers organized a short-lived oil boycott, and the price of oil worldwide quadrupled.
The Saudi government gained direct ownership of one-fourth of Aramco’s crude oil operations in 1973. Ultimately, the Saudis achieved complete control of the company and, therefore, over their chief economic resource. By 1984 the president of Aramco was a Saudi citizen.
Reign of Khalid (1975–82)
On March 25, 1975, King Faisal was assassinated. He was succeeded by his half-brother, Crown Prince Khalid, and Prince Fahd was made crown prince. During the new king’s reign, economic and social development continued at an extremely rapid rate, revolutionizing the infrastructure and educational system of the country.
After the signing of the Egyptian-Israeli peace agreement on March 26, 1979, Saudi Arabia joined most of the other Arab nations in severing diplomatic relations with Egypt. (See Camp David Accords.) The establishment of the Islamic Republic of Iran in 1979 and the subsequent Iran-Iraq War (1980–88) also caused the Saudi monarchy serious concern—in no small part because of the large Shiʿi minority in eastern Saudi Arabia (the same sect that predominates in Iran) that rioted in 1979 and 1980 in support of Iran’s revolution. The kingdom thereafter supported Iraq in its war with Iran.
The only dramatic domestic challenge to the monarchy since World War II took place in November 1979 when the Ḥaram mosque (Great Mosque) in Mecca, the holiest site in the world for Muslims, was seized by followers of a Saudi religious extremist, Juhayman al-Utaybi, who had been educated by the Saudi religious establishment and was a former member of the National Guard. Juhayman protested what he saw as the un-Islamic behavior of the Saudi royal family. The rebels occupied the mosque for two weeks before they were defeated by National Guard troops.
Saudi Arabia under Fahd and Crown Prince Abdullah (1982–2005)
On June 13, 1982, King Khalid died, and Crown Prince Fahd, who had long been influential in the administration of affairs, succeeded to the throne. Fahd maintained Saudi Arabia’s foreign policy of close cooperation with the United States and increased purchases of sophisticated military equipment from the United States and Britain. In the 1970s and ’80s the country had become the single largest oil producer in the world, and the government played a major role in determining OPEC policy on oil production and pricing. Oil revenues were crucial to Saudi society as its economy was changed by the extraordinary wealth channeled through the government and derived from oil operations, notwithstanding a downturn in oil prices and production in the mid-1980s. Urbanization, mass public education, the presence of numerous foreign workers, and access to new media all affected Saudi values and mores. While society changed profoundly, however, political processes did not. The political elite came to include more bureaucrats and technocrats, but real power continued in the hands of the dynasty.