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Oil was discovered in 1938, with oil concessions being leased to US and British companies, and exports began in 1946. During the first oil boom (194752), the country was transformed from a poor pastoral kingdom into an affluent modernizing state, as annual oil revenues increased from $10 million to $212 million. During World War II, Ibn Saud remained neutral, but sympathetic towards the UK and the USA. In 1945 he founded the Arab League to encourage Arab unity.
His father was the son of Faisal, the sultan of Nejd (Najd), in central Arabia, at whose capital, Riyadh, Ibn Saud was born. The al-Saud family had dominated central Arabian politics since the mid-18th century, when it had established itself as the standard bearer of the Wahabi fundamentalist Islamic sect. In 1891 a rival north Arabian dynasty, the Rashidis, seized Riyadh, and Ibn Saud went into exile with his father, who resigned his claim to the throne in favour of his son, who was brought up in Kuwait. In 1902, following a Bedouin (nomadic Arab tribe) revolt, Ibn Saud recaptured Riyadh and recovered the kingdom. By 1914 he controlled much of the former Turkish possessions along the Gulf, and in 1915 Britain recognised him as Emir of Hasa (eastern Arabia) and Nejd.
The flag was said to represent the nation's hope for a green revolution in agriculture. Green expresses the people's Muslim faith. Effective date: 20 November 1977.
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