ABSTRACT
This chapter outlines and analyzes the changes that have taken place in inter-Arab relations in the 1970s, with particular emphasis on the impact of oil and the wealth newly acquired by a small number of Arab states, on these relations. The emergence of the oil-producing states, especially after 1973, introduced an important new variable in the dynamics of inter-Arab politics. The rise of the oil-producing countries resulted in the 1970s in a noticeable growth in inter-Arab regional institutions, particularly economic ones. An analysis of joint inter-Arab economic ventures up to 1979 shows that 55 per cent of their capital was contributed by five Arab countries—Saudi Arabia, Kuwait, the United Arab Emirates, Qatar and Libya. As the balance of power shifts throughout the region, the changing roles of Egypt and Saudi Arabia are of particular interest. The oil embargo provided Saudi Arabia with the moral legitimacy and political credibility necessary for playing an influential role in the Arab world.
