Tiny neighbor of Saudi Arabia

QATAR

["This wealthy Gulf nation is known for its vast natural gas reserves and will host the 2030 Asian Games."]

The clue points to Qatar, a small country on the Arabian Peninsula that shares its only land border with Saudi Arabia. It’s often called "tiny" because of its relatively small size compared to its much larger neighbor. The answer fits perfectly as Qatar is well-known geographically and politically in the region.