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After spending Dip points to get SA allied with the ALLIES - the next turn it became conqured by Germany. I reloaded and moved 3 brit motor divs into its the city and the nex turn it still went to Germany and the 3 brit divs disappeared.

The only Saudi city (Tabuk) has no VP value. This is why the country surrenders immediately to the enemy alliance leader.

This problem will be fixed in 1.20. You can also fix it yourself by editing cities.csv file and changing VP value for Tabku from 0 to 1.