Businesses report that Saudi Arabia has been blocking or delaying financial transfers from Saudi banks to accounts in the United Arab Emirates since May. These payments, destined for companies and individuals in Dubai, are reportedly being returned by the Saudi central bank without clear explanation. Executives describe funds being held for about a week before cancellation, with banks offering vague reasons about central bank directives. This is disrupting trade between the two Gulf powerhouses, which have annual bilateral trade exceeding $20 billion.

One executive noted that suppliers from the UAE serving Saudi Arabia are impacted, suggesting the kingdom is harming its own supply chains. While the Saudi central bank stated its financial sector operates under a robust regulatory framework without country-specific restrictions, banks are applying risk-based measures. An Emirati official stated their economy ministry has not received formal complaints, but some businesses have resorted to routing funds via Bahrain or using more expensive platforms like PayPal.

The payment disruptions coincide with heightened political tensions, particularly following Saudi accusations that the UAE backed a separatist faction in Yemen, creating the most significant rupture between the neighbors in decades. These frictions also follow the UAE's surprise exit from Opec in April, a move viewed as a blow to Saudi Arabia's leadership in the oil cartel. The financial blockages suggest that political disputes are now directly impacting economic and commercial ties.