The Late Cretaceous sediments on the margin of the Arabia Plate contain information of tectonics and eustatic fluctuation of the Neo‐Tethys Ocean. The sedimentary association in the north of Saudi Arabia, combined with that from Jordan, Israel, and Egypt, revealed three fourth‐order sedimentary sequences that occurred in the Late Cretaceous and Palaeogene. The evolution of the sequences indicates that a most extensive transgression occurred in the south of Neo‐Tethys Ocean during that time, which deposited phosphorite and carbonate overlying the Devonian sandstone directly. The occurrence of thin and interbedded lithological layers implies vigorous fluctuation of the sea‐level during the transgression. We argue that the transgression is the results of tectonic activities and eustatic fluctuation, but may be closely controlled by the regional subduction and Neo‐Tethys collision.