In the aftermath of World War I, King Ibn Saud wanted to annex Kuwait and absorb it into Saudi Arabia.

Following the war the Saudis imposed a trade blockade on Kuwait from 1923 until 1937, which heavily impacted the Kuwaiti economy.

At the Uqair conference of 1922 which was convened to decide on the borders between some of the newly formed Arab states, Ibn Saud succeeded in persuading British diplomat Sir Percy Cox, the high commissioner in Iraq, to give the Saudis two-thirds of Kuwaiti territory.

Historically, there was a Saudi–Kuwaiti neutral zone inhabited by coastal fishermen; however, with the discovery of oil, the countries agreed to divide the territory, and reached an agreement in 1969.

Some of the Kuwaiti Royal family members fled to Saudi Arabia during this time.