# The Gulf and the oil monarchies The Arabian peninsula from the Saud-Wahhab pact through the discovery of oil, the founding of the petro-states, OPEC, and the modern hubs. *This story part of: Production and labor* ## c. 1517 — Ottoman Conquest of the Hejaz and Holy Cities After defeating the Mamluks, the Ottoman Empire took control of the Hejaz and became guardian of Mecca and Medina. Ottoman suzerainty over the holy cities lasted, with interruptions, until World War I. ## c. 1550 — Ottoman Expansion into Eastern Arabia The Ottomans extended control over the Al-Hasa region on the Persian Gulf coast during the mid-sixteenth century. Ottoman authority in eastern Arabia remained weak and contested by local tribes. ## c. 1740 — Wahhabi-Salafi Doctrine Muhammad ibn Abd al-Wahhab preached a strict, literalist reform of Islam that condemned practices he saw as idolatry and demanded a return to early sources. His teaching became the official creed of the Saudi state and a wider Salafi current. ## c. 1744 — The Diriyah Pact Muhammad ibn Saud, ruler of the oasis town of Diriyah, formed an alliance with the religious reformer Muhammad ibn Abd al-Wahhab. The pact joined Saudi political power to Wahhabi religious doctrine and founded the First Saudi State. ## c. April 1802 — Wahhabi Sack of Karbala Forces of the First Saudi State raided the Shia holy city of Karbala in Ottoman Iraq, killing many residents and looting shrines. The attack marked the expansion of Wahhabi power beyond central Arabia. ## c. 1803 to c. 1805 — Wahhabi Capture of Mecca and Medina The First Saudi State seized the holy cities of Mecca and Medina from Ottoman control. Wahhabi forces destroyed tombs and shrines they regarded as idolatrous. ## c. September 1818 — Ottoman-Egyptian Destruction of Diriyah An Egyptian army sent by the Ottoman viceroy Muhammad Ali, led by Ibrahim Pasha, captured and razed Diriyah. The campaign ended the First Saudi State and executed its leaders. ## c. January 1820 — General Maritime Treaty of 1820 Britain imposed a treaty on the Arab sheikhdoms of the lower Gulf to suppress piracy and the maritime slave trade. The agreement began British involvement in what became known as the Trucial Coast. ## c. 1824 — Founding of the Second Saudi State Turki ibn Abdullah recaptured Riyadh and re-established Saudi rule in Najd. Riyadh became the capital of a revived but smaller Saudi state. ## c. May 1853 — Perpetual Maritime Truce The Gulf sheikhdoms signed a permanent truce with Britain ending maritime warfare among them. The states became known as the Trucial States under British naval protection. ## c. 1891 — Battle of Mulayda and Rashidi Dominance The rival Al Rashid dynasty of Hail defeated the Al Saud, ending the Second Saudi State. The Al Saud went into exile in Kuwait. ## c. March 1892 — British Exclusive Agreements with the Trucial States The Trucial sheikhdoms agreed not to deal with any foreign power except Britain in exchange for protection. The arrangement made the coast a British protectorate in all but name. ## 23 January 1899 — Anglo-Kuwaiti Agreement Sheikh Mubarak Al Sabah signed a secret agreement placing Kuwait's foreign relations under British control. The pact shielded Kuwait from Ottoman claims and made it a British protectorate. ## 15 January 1902 — Ibn Saud Recaptures Riyadh Abdulaziz ibn Saud led a small raiding party that seized the Masmak fortress in Riyadh from the Al Rashid. The victory began the campaign to build the modern Saudi state. ## c. 1912 — Rise of the Ikhwan Movement Ibn Saud organized Bedouin tribesmen into settled Wahhabi military-religious communities called the Ikhwan. The Ikhwan became the shock troops of his conquest of Arabia. ## c. May 1913 — Saudi Conquest of Al-Hasa Ibn Saud took the eastern province of Al-Hasa from the Ottomans, extending Saudi rule to the Persian Gulf coast. The region later proved to hold vast oil reserves. ## 26 December 1915 — Treaty of Darin Ibn Saud signed a treaty making his lands a British protectorate during World War I. Britain recognized him as ruler of Najd and provided a subsidy and arms. ## 3 November 1916 — Qatar Becomes a British Protectorate Sheikh Abdullah bin Jassim Al Thani signed a treaty giving Britain control of Qatar's foreign affairs in return for protection. Qatar remained a British protectorate until 1971. ## c. 1924 to c. 1925 — Saudi Conquest of the Hejaz Saudi forces defeated Sharif Hussein of the Hashemite dynasty and captured Mecca, Jeddah, and Medina. The conquest gave Ibn Saud control of Islam's two holiest cities. ## 8 January 1926 — Kingdom of Hejaz and Nejd Proclaimed Ibn Saud was proclaimed King of the Hejaz, uniting it with his rule over Najd. The dual kingdom was the immediate forerunner of Saudi Arabia. ## 20 May 1927 — Treaty of Jeddah Britain recognized the full independence of Ibn Saud's kingdom under the Treaty of Jeddah. The treaty ended the protectorate relationship established at Darin. ## 29 March 1929 — Ikhwan Revolt and the Battle of Sabilla Ibn Saud crushed a rebellion by Ikhwan factions who opposed his accommodation with Britain and modern technology. The battle broke the Ikhwan as an independent military force. ## 1 June 1932 — Discovery of Oil in Bahrain The Bahrain Petroleum Company struck oil at Jebel Dukhan, the first commercial oil find on the Arabian side of the Gulf. The discovery proved the peninsula held oil and spurred exploration in Saudi Arabia. ## 23 September 1932 — Founding of the Kingdom of Saudi Arabia Ibn Saud merged his territories into the unified Kingdom of Saudi Arabia. The new state was an absolute monarchy grounded in Wahhabi Islam. ## 29 May 1933 — Saudi Arabia Grants Oil Concession to SOCAL Saudi Arabia awarded an oil exploration concession to the Standard Oil Company of California. The concession created the entity that would become Aramco. ## c. February 1938 — Discovery of the Burgan Field in Kuwait The Kuwait Oil Company discovered the Burgan field, one of the largest oil fields ever found. Kuwait's oil made it among the wealthiest states per capita after production began. ## 3 March 1938 — Oil Struck at Dammam No. 7 After years of dry wells, the Dammam No. 7 well came in as a commercial gusher, proving Saudi Arabia's vast reserves. The find transformed the kingdom's finances and future. ## c. January 1944 — Creation of the Arabian American Oil Company The California Arabian Standard Oil Company was renamed the Arabian American Oil Company, known as Aramco. It became the largest oil producer in the world and the core of Saudi wealth. ## 30 December 1950 — Fifty-Fifty Profit Sharing Agreement Saudi Arabia and Aramco agreed to split oil profits evenly, sharply raising the kingdom's revenue. Similar deals spread across the Gulf and shifted the balance toward producer states. ## 9 November 1953 — Death of King Abdulaziz ibn Saud The founder of Saudi Arabia died after ruling for over two decades. His many sons would succeed one another as kings into the twenty-first century. ## c. 1953 — Origins of Gulf Sovereign Wealth Kuwait created the Kuwait Investment Board to invest oil surpluses abroad, the earliest sovereign wealth fund. Its model of banking oil income for future generations spread across the Gulf. ## 14 September 1960 — Founding of OPEC Iran, Iraq, Kuwait, Saudi Arabia and Venezuela found the Organization of the Petroleum Exporting Countries at a conference in Baghdad to coordinate oil policies against the dominance of Western oil companies. ## 19 June 1961 — Kuwaiti Independence Kuwait ended its protectorate treaty with Britain and became fully independent. Iraq immediately claimed the territory, prompting a British and later Arab League deployment. ## c. 1961 — Founding of the Islamic University of Medina Saudi Arabia founded a university to train religious scholars and preachers, admitting many foreign students. Graduates carried Salafi teaching back to their home countries. ## 18 May 1962 — Founding of the Muslim World League An Islamic conference in Mecca resolves to found the Muslim World League, a Saudi-based body to propagate Islam and coordinate Islamic organizations worldwide. ## c. 1962 — First Abu Dhabi Oil Exports Abu Dhabi began exporting oil after offshore and onshore discoveries in the late 1950s and early 1960s. Oil revenue funded the emirate's rise and later the wider federation. ## c. 1966 — Discovery of Oil in Dubai Dubai found oil at the offshore Fateh field, with exports beginning in 1969. Its modest reserves pushed Dubai to diversify early into trade and services. ## 16 January 1968 — British Withdrawal East of Suez Announced The British government announced it would withdraw military forces from the Persian Gulf and Asia by the end of 1971. The decision forced the Gulf protectorates to prepare for independence. ## 23 July 1970 — Qaboos Seizes Power in Oman Qaboos bin Said deposed his father in a British-backed palace coup and began modernizing the isolated sultanate. His long reign opened Oman to development while keeping it neutral in regional disputes. ## 15 August 1971 — Bahraini Independence Bahrain declared independence from Britain after a UN survey found its people favored sovereignty over Iranian claims. It was the first Gulf state to develop oil and later hosted the US Fifth Fleet. ## 3 September 1971 — Qatari Independence Qatar became independent after the end of its British protectorate. The small peninsula would later leverage vast natural gas reserves to become one of the world's richest states. ## 2 December 1971 — Founding of the United Arab Emirates Six of the former Trucial States federated into the United Arab Emirates as Britain withdrew; Ras al-Khaimah joined in 1972. Sheikh Zayed of Abu Dhabi became the federation's first president. ## 17 October 1973 — OPEC Oil Embargo of 1973 Arab members of OPEC cut production and embargoed states supporting Israel in the Yom Kippur War, quadrupling oil prices. The embargo demonstrated Gulf oil power and reshaped global energy politics. ## c. 8 June 1974 — The Petrodollar Arrangement The United States and Saudi Arabia agreed to economic and military cooperation under which oil was priced in dollars and surplus revenue was recycled into US assets. The arrangement tied Gulf oil wealth to American finance and security guarantees. ## c. 1976 — Founding of the Abu Dhabi Investment Authority Abu Dhabi established a state fund to manage its oil surplus, which grew into one of the largest sovereign wealth funds in the world. Such funds turned Gulf oil income into global financial power. ## January 1978 to February 1979 — Iranian Revolution 1978-1979 revolution that overthrew the Iranian monarchy ## 20 November 1979 — Seizure of the Grand Mosque in Mecca Armed militants led by Juhayman al-Otaybi seized the Grand Mosque and held it for two weeks, denouncing the monarchy as corrupt. The shock pushed the Saudi state toward stricter religious policies at home and abroad. ## c. 1979 — Opening of Jebel Ali Port and Free Zone Dubai opened the giant Jebel Ali port, later adding a free trade zone that drew foreign firms. The project anchored Dubai's shift from oil toward trade, logistics, and services. ## c. 1979 — Second Oil Shock The Iranian Revolution disrupted oil supply and sent world prices to new highs. The shock brought another surge of revenue into the Gulf monarchies. ## 22 September 1980 to 20 August 1988 — Iran, Iraq War 1980-1988 war between Iran and Iraq ## 22 September 1980 to 1988 — Iran-Iraq War Iraq invaded Iran, beginning an eight-year war that the Gulf Arab states largely financed on Iraq's side. The conflict deepened rivalries and drove the founding of a Gulf security bloc. ## c. 1980 — Global Export of Salafi Ideology Using oil wealth, Saudi Arabia funded mosques, schools, charities, and preachers spreading its religious doctrine across the Muslim world and beyond. Critics linked the campaign to the growth of hardline movements, though its scale and effects remain debated. ## c. 1980 — Nationalization of Saudi Aramco Saudi Arabia completed its gradual acquisition of Aramco, taking full ownership from its American partners. State control over the world's largest oil company gave the kingdom direct command of its main asset. ## 25 May 1981 — Founding of the Gulf Cooperation Council Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE sign the GCC charter in Abu Dhabi, creating a political and economic union of the Arab Gulf monarchies amid the Iran-Iraq War. ## c. October 1986 — King Fahd Adopts the Title Custodian of the Two Holy Mosques King Fahd replaced royal titles with Custodian of the Two Holy Mosques, stressing the monarchy's role as guardian of Mecca and Medina. The title tied Saudi legitimacy to its stewardship of Islam's holiest sites. ## 2 August 1990 to 28 February 1991 — Gulf War Iraq invades Kuwait and a US-led coalition of 35 nations expels it in a six-week campaign. The war establishes American military dominance in the post-Cold War Middle East. ## 2 August 1990 — Iraqi Invasion of Kuwait Iraq under Saddam Hussein invaded and annexed Kuwait, seizing its oil fields. The invasion triggered a global crisis and a US-led military response. ## 25 June 1996 — Khobar Towers bombing A truck bomb destroyed part of the Khobar Towers housing complex used by US forces, killing 19 American Air Force personnel and wounding hundreds. ## 1 November 1996 — Launch of Al Jazeera Qatar launched the Al Jazeera satellite channel, which broke the state-media mold across the Arab world. Its coverage gave the small emirate outsized regional influence and irritated its neighbors. ## 11 September 2001 — The Gulf and the September 11 Attacks Fifteen of the nineteen hijackers in the attacks on the United States were Saudi citizens, straining ties with Washington. The event intensified scrutiny of Gulf funding for extremist networks. ## c. 2005 — Founding of the Qatar Investment Authority Qatar created a sovereign wealth fund to invest its gas revenue in global assets. The fund bought stakes in banks, property, and companies across Europe and beyond. ## 4 January 2010 — Opening of the Burj Khalifa Dubai opened the Burj Khalifa, the tallest building in the world, as a symbol of its transformation into a global hub. The tower capped a construction boom that made the city a center for tourism and finance. ## 14 February 2011 — Bahrain Uprising of the Arab Spring Mass protests in Bahrain, led largely by the Shia majority, demanded political reform from the Sunni monarchy. The uprising was the most serious Arab Spring challenge to a Gulf state. ## 14 March 2011 — Peninsula Shield Intervention in Bahrain Saudi Arabia and the UAE sent GCC forces into Bahrain to help crush the protests. The intervention showed the Gulf monarchies' resolve to prevent unrest from spreading. ## 25 April 2016 — Announcement of Saudi Vision 2030 Crown Prince Mohammed bin Salman unveiled a plan to diversify Saudi Arabia's economy away from oil and loosen some social restrictions. The program included giant projects, tourism, and reduced clerical influence. ## 5 June 2017 — The Qatar Blockade Saudi Arabia, the UAE, Bahrain, and Egypt cut ties and imposed a land, sea, and air blockade on Qatar, accusing it of backing extremists and Iran. The rift split the GCC until reconciliation in 2021. ## 21 June 2017 — Mohammed bin Salman Named Crown Prince King Salman named his son Mohammed bin Salman as heir, concentrating power in the young prince. He drove sweeping economic and social change alongside a crackdown on dissent. ## 24 June 2018 — End of the Saudi Women's Driving Ban Saudi Arabia lifted its ban on women driving, one of the most visible reforms under Vision 2030. The change came alongside continued detention of some activists who had campaigned for it. ## 2 October 2018 — Killing of Jamal Khashoggi Saudi agents killed the journalist Jamal Khashoggi inside the Saudi consulate in Istanbul. The murder damaged the kingdom's image and its relations with Western governments. ## 15 September 2020 — Abraham Accords Agreements normalizing relations between Israel and the United Arab Emirates and Bahrain, later joined by Morocco and Sudan. They were the first Arab-Israeli normalizations in a quarter century. ## 20 November 2022 — Qatar Hosts the FIFA World Cup Qatar became the first Arab and Gulf state to host the football World Cup, after years of spending and scrutiny over labor conditions. The tournament showcased the country's wealth and ambition on a global stage. ## 10 March 2023 — Saudi-Iran Détente Saudi Arabia and Iran agreed to restore diplomatic relations in a deal brokered by China. The agreement eased years of rivalry and signaled a growing Chinese role in Gulf affairs.