Al Jahra was once dominated by agricultural land and began as a small oasis village. Historically it became known as a notable trading point for camels and a stopping place on the way to Kuwait City. It gradually grew into a town and the historic Red Fort (Qasr Al-Ahmar) of Al Jahra was built. Al Jahra was the site of the Battle of Jahra in 1920, a conflict between Kuwaiti and Saudi forces. Today there is a national monument commemorating the battle. The conflict was settled in 1922 when King Abdul Aziz al-Saud recognized the independence of Kuwait in exchange for territory.