Money transfers between Saudi Arabia and the UAE are being delayed or cancelled without explanation, forcing some businesses to route payments through third countries and some individuals to travel between the two Gulf states with large amounts of cash. The problem, first reported by Bloomberg, began more than a month ago.
Relations between Abu Dhabi and Riyadh have been strained by differing approaches to the wars in Sudan and Yemen, relations with Israel, and management of oil markets (the UAE left OPEC in May). Both countries are also competing to be the region’s primary business hub.
It is not the first time souring relations between Abu Dhabi and Riyadh have hit business in the region. Trade at the border was snarled in hours of queues in 2021 when Saudi Arabia imposed new restrictions on imports from the UAE. Riyadh has also introduced rules forcing companies that want to compete for Saudi government contracts to establish regional headquarters in the kingdom, drawing some executives away from Dubai.