Khalid's Reign: 1975-1982
King Faisal was succeeded by his half-brother King Khalid during whose reign economic and social development continued at an extremely rapid rate, revolutionizing the infrastructure and educational system of the country; in foreign policy, close ties with the US were developed. In 1979, two events occurred which the Al Saud perceived as threatening the regime, and had a long-term influence on Saudi foreign and domestic policy. The first was the Iranian Islamic revolution. It was feared that the country's Shi'ite minority in the Eastern Province (which is also the location of the oil fields) – might rebel under the influence of their Iranian co-religionists. In fact there were several anti-government riots in the region in 1979 and 1980. The second event, was the seizure of the Grand Mosque in Mecca by Islamist extremists. The militants involved were in part angered by what they considered to be the corruption and un-Islamic nature of the Saudi regime.
Part of the response of the royal family was to enforce a much stricter observance of Islamic and traditional Saudi norms in the country (for example, the closure of cinemas) and to give the Ulema a greater role in government. Neither entirely succeeded as Islamism continued to grow in strength. King Khalid empowered Crown Prince Fahd to oversee many aspects of the government's international and domestic affairs. Economic development continued rapidly under King Khalid, and the kingdom assumed a more influential role in regional politics and international economic and financial matters.
During the 1970s and 1980s, more than 45,000 Saudi students per year went to the United States, while more than 200,000 Americans have lived and worked in the Kingdom since the discovery of oil.
A tentative agreement on the partition of the Saudi-Iraqi neutral zone was reached in 1981. The governments finalized the partition in 1983.
King Khalid died in June 1982.
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