The transformation of Saudi Arabia from a poor desert kingdom whose economy was based on pilgrimage and primitive agriculture into one of the key players in the global economy is a direct result of the discovery and exploitation of its colossal oil reserves. However, the path to wealth was determined not only by the presence of resources but also by complex geopolitics, strategic control over their extraction, and a far-sighted, albeit contradictory, policy of the ruling dynasty. The Discovery of "Black Gold": A Deal with the West Until the 1930s, the economy of Saudi Arabia was extremely limited, and its state budget depended on revenues from the pilgrimage of Muslims to the sacred cities of Mecca and Medina. A turning point came in 1933 when King Abdulaziz ibn Saud, in need of money, granted an oil exploration concession to the American company Standard Oil of California (SOCAL). After several years of fruitless searches, on March 3, 1938, oil of commercial quality was discovered at well No. 7 in Dharan. This discovery forever changed the fate of the region. In 1944, the American company was transformed into Arabian American Oil Company (Aramco), which for decades became the main operator of oil production in the kingdom. The Era of Nationalization and the Acquisition of Sovereign Control The first decades saw most of the profits from oil sales go to Western shareholders of Aramco. However, with the growing global demand for energy resources and the strengthening of the Saudi state, the Saudi leadership began to fight for an increase in its share. The key process was the gradual nationalization of Aramco's assets. Starting with a 25% stake in 1973, Saudi Arabia acquired 100% of the company's shares by 1980, gaining full sovereignty over its natural resources. This step coincided with the oil embargo of 1973, when Arab oil-exporting countries imposed restrictions on supplies to support Egypt and Syria in their war with Israel. Oil prices quadrupled, and Saudi Arabi ... Read more