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Saudi Arabia vs UAE: The Emerging Rivalry and its Implications

Published February 16, 2026, 17:16
Saudi Arabia vs UAE: The Emerging Rivalry and its Implications

An intense competition is emerging between Saudi Arabia and the United Arab Emirates for regional hegemony in the Middle East. This rivalry, while not a direct conflict presently, concerns which country will dominate the region in the coming years. During the past decade, the two countries were close allies, based on common interests and the confrontation of common threats, such as the war in Yemen and countering the influence of Iran. However, differences in approach to Yemen, with Saudi Arabia supporting the central government and the UAE supporting southern separatists, began to create fissures in their relationship. The common crisis with Qatar in 2017 was a period of cooperation, but the balance of the alliance shifted when Saudi Arabia sought to claim the role that the UAE had in attracting investment and international presence. Saudi Arabia, with 'Vision 2030,' is seeking to diversify its economy from oil and strengthen its geopolitical and economic power. Through the requirement that multinational corporations establish regional headquarters within the Kingdom to access government contracts, Saudi Arabia has undermined the UAE's position as a regional business hub. This move has forced many multinational companies to relocate their headquarters to Saudi Arabia, undermining the UAE's economy. This conflict reflects a deeper issue regarding the reshaping of power balances in the Middle East and the different approaches of the two countries to economic development and geopolitical influence.