Since 1932 Saudi Arabia has had full international recognition as an independent state. In 1934 a boundary dispute with Yemen initiated a seven-week war in which the Saudis were generally victorious. Hostilities terminated with the Treaty of Taif, by which the Saudis gained the disputed land, but relations with Yemen remained tenuous up into the 1990's.
Establishing boundaries for the country remained a problem throughout the 1930's. Much of this was caused by the tradition of tribal overlordship rather than territorial boundaries. The frontiers with Iraq, Kuwait, and Jordan were mostly demarcated by 1930. However, along the southern region, no agreement was reached on the exact site of the frontiers with Yemen, Muscat, and Oman.
During World War II, Saudi Arabia was a neutral country until 1945, when it declared war on Germany. This declaration allowed Saudi Arabia to enter the United Nations. Ibn Saud also joined the Arab League at this time.
Before World War II, the economy of Saudi Arabia was based primarily upon the millions of Muslims who came on pilgrimage to Mecca, as well as customs duties and taxes. In 1941 the Saudi government began to exploit the vast oil pockets that had been discovered near the shores of the Persian Gulf. In early 1944 a number of employees of Arabian American Oil Company (Aramco) went to Saudi Arabia.
Saudi Arabia's vast oil reserves created a mixed blessing. Saudi Arabia was unable to supply the oil company with sufficient skilled workers, which meant a large influx of foreign workers into the country. Cultural life began to change, brought about by the disturbance of traditional patterns, and a population shift from rural areas to the major cities occurred. Despite the new wealth, extravagant spending led to governmental deficits and foreign borrowing by the 1950's.
World History
