File photo- Crown Prince of Saudi Arabia Mohammed bin Salman, left, and Crown Prince of Abu Dhabi Mohammed bin Zayed in 2018.Photographer: Anadolu Agency/Anadolu. The two Gulf Arab countries have many common interests, especially in the spheres of geopolitics and security: They are both threatened by Iran and its proxies, are wary of Turkey’s growing influence in the region and fear the political Islam propagated by the Muslim Brotherhood and its offshoots. For this reason analysts predict that the rift is short lived since it does not serve the interest of the Gulf countries
UAE-headquartered multinationals woke up on 31 January to an unwelcome surprise: Saudi consulates across the Gulf are quietly refusing, delaying or cancelling business-visa applications filed from the United Arab Emirates. The disruption, first flagged by the Financial Times, follows a sharp deterioration in political relations after Riyadh accused Abu Dhabi of supporting a Yemeni separatist faction in December. In the past week alone, banks, consultancies and energy-services companies have reported dozens of rejected or unanswered visa requests, forcing executives to reroute through Qatar and Bahrain or to enter the kingdom on short-term tourist visas instead.(ft.com)
The timing could not be worse. Since 2024 Saudi Arabia has required foreign companies to move their regional headquarters to Riyadh to qualify for government contracts. Visa denials therefore derail feasibility studies, project kick-offs and compliance audits that rely on UAE-based specialists shuttling across the border. Several firms told the FT they suspect this is a “sticks-and-carrots” tactic designed to accelerate relocations.(ft.com)
Saudi officials insist that no formal change has been made to entry rules, and point to a gradual easing of delays in recent days. Nevertheless, immigration lawyers warn that relying on tourist visas exposes employees to fines or deportation if caught working. Risk managers are advising travellers to carry invitation letters, hotel bookings and proof of onward travel to reduce interview times at Saudi immigration.(ft.com)
For UAE-based employers, the episode is a wake-up call about over-reliance on friction-free Gulf mobility. Contingency plans being discussed include seconding key staff to Riyadh on longer assignments, hiring Saudi nationals for project work, and adding specialist visa-processing units inside HR. In the medium term, companies may revisit the question of locating regional hubs: the UAE still offers unparalleled lifestyle and logistical advantages, but the cost of disrupted Saudi access is beginning to rise.
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