Saudi Arabia Reportedly Blocks Transfers to UAE Amid Deepening Gulf Tensions

Saudi Arabia has reportedly imposed behind-the-scenes financial sanctions on the United Arab Emirates, blocking or delaying money transfers between the two major Gulf economies. The move escalates a growing rift between the two nations, exacerbated by the UAE's recent departure from the Organization of the Petroleum Exporting Countries (OPEC), a group historically led by Saudi Arabia.

According to the Financial Times, Saudi banks have been halting or slowing transactions to UAE accounts since mid-May. These restrictions affect both corporate payments and smaller personal transfers, often without clear explanations. One UAE-based healthcare firm executive reported that three payments owed by Saudi companies remain blocked.

Despite these reported measures, Saudi Arabia's central bank issued a statement asserting that the actions are not aimed at any specific country. The trade relationship between Saudi Arabia and the UAE is substantial, with annual trade valued at approximately $20 billion. The UAE's exit from OPEC in May signaled a potential intensification of competition in the energy market.

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There is no intention to target any specific country.