Saudi-UAE Feud Forces Global Firms to Draft Contingency Plans

Executives at major Wall Street banks and private-equity funds are preparing for worst-case scenarios as the diplomatic and economic dispute between Saudi Arabia and the United Arab Emirates deepens. Bloomberg reports that some banks fear having to choose between Abu Dhabi and Riyadh, prompting reviews of force-majeure clauses, logistics routes, and local partnerships.

Rivalry Between Oil-Rich Gulf Giants Rattles Wall Street

The two oil-rich neighbours have long been “blood allies,” but diverging positions on Yemen, Sudan and the U.S.–Iran war have strained ties. In April, the UAE withdrew from OPEC after years of cooperation, citing Saudi Arabia’s reluctance to act against Iran’s regional moves. Saudi Arabia continues to push Riyadh as the regional business hub, while the UAE expands oil output after leaving the Saudi-led OPEC bloc in May.

Rivalry Between Oil-Rich Gulf Giants Rattles Wall StreetMiddle East Eye

Logistics bottlenecks have emerged at the UAE-Saudi border, with Semafor noting delays lasting “several days” and some truck drivers sleeping in trailers for up to a week. The Financial Times adds that payments from Saudi banks to Dubai-based accounts have been returned or held up since May without explanation. Reports of “under-the-radar financial sanctions” describe Saudi banks blocking or delaying remittances to UAE accounts. Analysts warn that a repeat of the 2017 Qatar rupture—when Saudi Arabia, the UAE, Bahrain and Egypt cut diplomatic ties with Qatar for four years—could again shock global markets.

Middle East Eye

Wall Street firms are reportedly “walking a tightrope, reluctant to take either side,” according to Bloomberg, and are drafting contingency plans that include alternative supply chains and diversified investment strategies. The shift of both sovereign wealth funds—Saudi Arabia’s $1.21 trillion and the UAE’s $2.7 trillion—toward AI and infrastructure heightens the stakes, as losing either partner would diminish access to trillions of dollars of capital.

Rivalry Between Oil-Rich Gulf Giants Rattles Wall Street

• “Wall Street is walking a tightrope, reluctant to take either side.” — Bloomberg, News Agency

Rivalry Between Oil-Rich Gulf Giants Rattles Wall Street

• “According to the Financial Times (FT), there have recently been growing cases of "under-the-radar financial sanctions," in which Saudi banks block or deliberately delay remittances made to accounts based in the UAE.” — Financial Times, Publication

Rivalry Between Oil-Rich Gulf Giants Rattles Wall Street

• “The Financial Times also reported that payments from Saudi banks to UAE-based accounts belonging to companies and individuals in Dubai had been returned or held up since May, often without explanation.” — Financial Times, Publication

Middle East Eye