(FILES) Saudi Arabia's Crown Prince Mohammed bin Salman bidding farewell to UAE President Sheikh Mohamed bin Zayed al-Nahyan at King Khalid International Airport in Riyadh on September 3, 2025. (Photo by Abdulla AL-BEDWAWI / UAE PRESIDENTIAL COURT / AFP)
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Moneycontrol30-01-2026, 22:15

Saudi Arabia and UAE: From 'Iron Brothers' to Gulf Rivals

  • The long-standing alliance between Saudi Arabia and the UAE has fractured, evolving into a quiet but significant rivalry.
  • The shift is driven by economic competition, diverging security priorities, and clashing regional ambitions, with Yemen serving as a key battleground.
  • Saudi Arabia's Vision 2030 and initiatives like "Project HQ" challenge Dubai's economic dominance, forcing multinationals to relocate.
  • In Yemen, the two nations backed rival factions: Saudi Arabia supported the Presidential Leadership Council, while the UAE backed the Southern Transitional Council.
  • Both countries are forging new alliances: Saudi Arabia with Pakistan and Turkey, and the UAE with India and Israel, reflecting their distinct strategic approaches.

Why It Matters: The Saudi-UAE alliance has transformed into a rivalry, reshaping Gulf politics due to economic and strategic divergences.

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