The escalating rivalry between Saudi Arabia and the United Arab Emirates may now be affecting one of the most basic foundations of their economic relationship: the movement of money.
Companies and individuals in the UAE have reported unexplained delays, blocks and reversals involving payments originating in Saudi Arabia, according to a report by the Financial Times.
Business figures said transfers that were supposed to reach bank accounts in Dubai have in some cases been held for days and then returned to the sender without a clear explanation. The incidents have fueled concern that the increasingly visible political tensions between Riyadh and Abu Dhabi may be beginning to affect commercial activity.
According to the report, the problem began emerging in May and has since been described by several business figures operating between the two countries.
In some cases, payments from Saudi entities to UAE-based companies or individuals were reportedly held for around a week before being sent back.
No official explanation was provided.
Three payments blocked and returned
One executive at a Western healthcare company operating from Dubai told the Financial Times that three payments from a longstanding Saudi client had been blocked and returned since mid-May.
According to the executive, even attempts by the Saudi client to make the transfer personally failed. After inquiries were made with banks, the company reportedly received only partial explanations suggesting that the blockage originated on the Saudi side of the banking system, with references to the Saudi central bank.
No clear reason was given for the restrictions, and there was no indication of how long the problem might continue. Another Dubai-based executive said payments from Saudi customers were taking significantly longer than in the past.
In one case, a customer was waiting to receive goods, but the transaction could not move forward because the payment had still not arrived.
The executive warned that the disruption could ultimately harm Saudi businesses themselves, since many suppliers serving the Saudi market operate from the UAE.
Businesses turn to PayPal and Bahrain
Other cases described in the report suggest companies are already searching for alternative payment routes.
One Dubai-based service provider reportedly had to use PayPal after a bank payment from a Saudi client was canceled, a more expensive option for the business.
Another businessman said he was forced to route funds through Bahrain after direct transfers into the UAE were blocked.
The difficulties also appear to extend beyond major commercial transactions.
A senior banking figure said even small transfers had been stopped without explanation, describing the situation as “very strange.”
Another person familiar with the issue said individuals seeking to move money between their own accounts, or transfer funds to relatives and friends, had also encountered problems in recent weeks.
The full scale of the phenomenon remains unclear.
Saudi central bank denies targeted restrictions
Saudi Arabia’s central bank rejected suggestions that direct restrictions were being imposed against specific countries. It said the kingdom’s financial sector operates under a strong regulatory framework and that banks apply risk-based measures consistently across transactions in order to protect the integrity of the financial system. The UAE also denied knowledge of an official pattern.
An Emirati official said the Economy Ministry had not received complaints or reports from private companies concerning unusual difficulties in completing payments between the two countries. The official added that Saudi-UAE trade and economic ties remain deep and that any complaints submitted to authorities would be examined through normal channels.
A political feud with economic consequences?
The reports come against the backdrop of growing tensions between two of the Arab world’s most powerful states.
Saudi Arabia and the UAE were once widely seen as exceptionally close strategic partners, particularly during the early years of Saudi Crown Prince Mohammed bin Salman’s rise to power.
But the relationship has deteriorated amid competing regional ambitions, disagreements over Yemen and broader rivalry for economic and political influence.
According to the Financial Times, relations worsened after Saudi Arabia accused the UAE of supporting a separatist faction in Yemen that acted against forces aligned with Riyadh.
The recent U.S.-Israeli war against Iran briefly created the appearance of renewed regional unity, but analysts cited in the report said the confrontation did not resolve the underlying Saudi-Emirati disputes.
It merely postponed them.
OPEC rupture adds to tensions
Another major source of strain came in late April, when the UAE announced its withdrawal from OPEC.
The move was widely viewed as a challenge to Saudi Arabia’s status as the organization’s de facto leader and as another sign that Abu Dhabi was increasingly prepared to pursue an independent regional strategy.
Saudi officials had previously insisted that political tensions would not spill into economic relations.
But the reported payment disruptions are now raising doubts among business figures.
If the incidents prove to be systematic rather than isolated banking problems, they could represent a significant new stage in the Saudi-UAE confrontation — one in which the rivalry between Riyadh and Abu Dhabi is no longer confined to diplomacy, oil policy and proxy competition, but is beginning to reach directly into the financial system and everyday commerce.
