Riyadh Freezes the Money Bridge to Dubai

WEST ASIA / GULF DESK — Since May, Saudi banks have delayed, returned, or blocked transfers to UAE-based businesses and individuals, usually with no explanation given. A Dubai healthcare firm had three payments from a longstanding Saudi client blocked since mid-May; a personal-transfer workaround from the same client also failed. Affected firms are rerouting through Bahrain or switching to costlier rails like PayPal to keep goods moving. Saudi Arabia's central bank denies country-specific restrictions, citing standard risk-based compliance; UAE's economy ministry says it has received no formal complaints. WHY IT MATTERS: Bilateral trade hit $25.7B last year, up from $21.7B in 2024. The friction sits on top of December's Yemen rift and the UAE's April OPEC exit — two Gulf powers now competing openly to be the region's finance and AI hub. SOURCES: Financial Times, Bloomberg, Middle East Eye, PYMNTS, Enterprise AM.