Saudi-UAE Tensions Grow as Businesses Report Blocked Money Transfers
Businesses have reported delays and blocked payments from Saudi Arabia to accounts in the United Arab Emirates, raising fears that growing political tensions between the Gulf neighbours are beginning to affect trade.
Several companies told the Financial Times that transfers from Saudi banks to UAE-based accounts have been returned or held for weeks without clear explanations. A Dubai-based healthcare executive said payments from a Saudi client had been blocked since May.
Saudi Arabia’s central bank denied imposing restrictions targeting specific countries, but the reports have increased concerns over the future of one of the Gulf’s most important economic relationships.
Saudi Arabia and the UAE are the Arab world’s largest economies, with bilateral trade worth more than $20 billion annually. However, the two countries have faced disagreements over regional issues, including Yemen, Israel policy, oil strategy and economic competition.
Tensions intensified after disputes over Yemen and the UAE’s decision to leave OPEC earlier this year. Analysts say the recent Iran conflict temporarily pushed differences aside, but underlying rivalries remain.
Despite the tensions, Saudi officials have previously said political disagreements would not harm economic cooperation between the two nations.
