PNN – Saudi Arabia has halted the transfer of funds to bank accounts in the UAE.
According to the report of Pakistan News Network; the escalating tensions between Saudi Arabia and the United Arab Emirates—previously evident in the political and military spheres—have now spread to the financial and banking relations between the two nations.
A report by the Financial Times indicates that since May, Saudi banks have blocked transfers to bank accounts in the UAE or subjected them to lengthy delays.
Several informed sources have told the newspaper that financial transfers sent by Saudi companies and individuals to companies and residents in Dubai are either being returned or facing delays of several days, without any clear explanation.
An executive at a Dubai-based healthcare company, who asked to remain anonymous, stated that since mid-May, three payments from a long-standing Saudi client—with whom the firm has worked for years—have been blocked and returned by Saudi banks.
He added: The funds are typically held by the bank for about a week and then returned to the sender without any questions being asked of either the sender or the recipient.
Political tensions between Riyadh and Abu Dhabi date back to last December, when Saudi Arabia accused the UAE of backing a Yemeni separatist group that had launched attacks against Riyadh-aligned forces in Yemen. This crisis marked the most significant rift between the two Persian Gulf neighbors in decades.
Although the US-Israeli campaign against Iran initially prompted the two nations to set aside their differences to confront a shared threat, analysts say this unity was merely superficial.
In late April, the UAE dealt a heavy blow to Saudi Arabia’s position as the oil cartel’s de facto leader with its surprise decision to withdraw from OPEC. Emirati officials attributed the move to their “economic outlook and changes in their energy mix,” but the decision—made after years of dissatisfaction with OPEC production quotas—was interpreted as a hostile act against Riyadh.