 Saudi Arabia did not join this Egypt-led and Cairo-based union until 1974, most probably due to the tense relationship between Saudi Arabia and Egypt at the time.On 14 April 1976, Arabsat was formed under Arab League jurisdiction with the goal of serving the information, cultural and educational needs of its member states.Saudi Arabia was the main financier of the new organization due to its expanded financial resources as a result of its flourishing oil-exporting industry.