It is early 20th century, in the 1930s. The movie opens with a truce after internecine fighting between two Arab chieftains, namely Emir Nesib and Sultan Amar. The peace pact entails that Sultan Amar hand over his two sons, Auda and Saleh in custody of Emir Nesib for fifteen years.
Meanwhile, the American Company - Texas Oil is exploring for oil in Arabia. A Texas Oil officer approaches Emir Nesib about the prospects of rigging crude oil and changing the lot of his people by the immense riches gained by oil wealth. The liberal and progressive Emir gives his permission for oil rigging to American company and breaks the peace accord reached with Sultan Amar that the Yellow Belt will remain a No man land bordering their fiefdoms. This violation of the pact perturbed Sultan Amar who is conservative and does not approve of the exploitation of their natural resources by Americans. In order to appease the matter, Emir Nesib sends a delegation headed by prince Auda to convince Sultan Amar (his father) not to oppose oil rigging operations in the Yellow Belt as it brings wealth to them and they can build hospitals, schools and other infrastructure bringing prosperity to their region. But the orthodox and conservative courtiers of Sultan Amar would not listen to the soft spoken Prince Auda.
In the meanwhile, prince Saleh asserts to aggressively joining his father, Sultan Amar and kills his two companions on the way while he was fleeing to his father's camp. But Saleh was intercepted by Emir Nesib's son Tariq who ruthlessly shoots Saleh dead. Other contending factions from Arabia join forces with Sultan Amar to avenge Saleh's killing and oust the American oil company. In the midst of this mayhem, prince Auda made his best effort to appease both sides but to no avail. He loves his wife Leyla who is daughter of Emir Nesib and he wants to strike a balance between his rigid father and liberal progressive father in law.
Amid all this fighting the situation turns ugly when one of the overlords envisaging a detente between prince Auda and Sultan Amar, shoots from a distance and kills the Sultan. Heavy fighting erupts between the two camps and the warlord was about to kill prince Auda when a slave girl kills the warlord by stabbing him in the back. Prince Auda survives all wounds and ordeals. Auda returns to Emir Nesib who treated him respectably and prince Auda suggests his father in law to act as an chair in the board of Texas Oil overseeing the interests of their country. While princess Leyla brings happy news of her pregnancy to Auda who is thrilled and humbled.