Khafji city is located in the southern part of the ex-Neutral Zone and on the far northeastern tip of the Kingdom of Saudi Arabia facing the Arabian Gulf, 300 km. Northward Dammam City in the Eastern Province and 130 km Southward Kuwait city.

Chronology of the Neutral zone between Saudi Arabia & Kuwait
The Neutral Zone was established between Nejd Sultanate under the rule of Al-Saud Family and the State of Kuwait ,which was a British Protectorate at that time.
The reason for establishing the neutral zone was demarcating a free-wander area for nomads between the two countries have been equally sharing the rights and administrative responsibilities in this area.
The two countries respectively announced their rights to the continental archipelago and Ra's Al-Khafji bat at the offshore area opposite to the Neutral Zone whereas they equally shared the sea bed and underground resources.
The two countries signed an agreement stipulated that the neutral zone is divided into two areaswhereas each country imposs its domination over one of them,provided that the underground resources remain equally shared between them.That agreement came into force as of June 1970.