<P> By 1970, King Faisal of Saudi Arabia recognized the republic and a truce was signed . Egyptian military historians refer to the war in Yemen as their Vietnam . </P> <P> In 1990, Iraq invaded Kuwait . The invasion of Kuwait by Iraqi forces led to the 1990--91 Gulf War . Egypt, Qatar, Syria and Saudi Arabia joined a multinational coalition that opposed Iraq . Displays of support for Iraq by Jordan and Palestine resulted in strained relations between many of the Arab states . After the war, a so - called "Damascus Declaration" formalized an alliance for future joint Arab defensive actions between Egypt, Syria, and the GCC member states . </P> <P> The extraction and refining of oil and gas are the major industrial activities in the Arabian Peninsula . The region also has an active construction sector, with many cities reflecting the wealth generated by the oil industry . The service sector is dominated by financial and technical institutions, which, like the construction sector, mainly serve the oil industry . Traditional handicrafts such as carpet - weaving are found in rural areas of Arabia . </P>

What is the primary foundation of the economy of the arabian peninsula