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Also spelled as Dammam, located in eastern Saudi Arabia. It lies on the Persian Gulf northwest of Bahrain Island and forms a larger metropolitan and industrial complex with Al-Khubar, Al-Qatif, and Az-Zahran. The discovery of immense oil reserves in the locality in 1938 led to the radical transformation of the once-small coastal settlement into a boom town that is now a major seaport, a petroleum and natural-gas centre, the commercial hub of eastern Saudi Arabia, and the eastern terminus of the railroad to Riyadh. Ad-Dammam is strikingly modern, with sprawling suburbs--most of the town has been built since the 1940s. Apart from the oil industry, the city's economy is supported by agriculture, especially dairying. Large herds of imported beef and dairy cattle are kept on experimental farms. King Faysal University opened in the city in 1975. Pop. (1980 est.) 200,000.

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