Saudi Arabia tightens regulations on money flow to UAE, in latest sign of deepening rift
The measures, which were not announced publicly, could help explain why a number of companies say they have had difficulties transferring funds from accounts in Saudi Arabia to the UAE recently.
Saudi Arabia has implemented stricter financial regulations on transactions to the United Arab Emirates (UAE), indicating a potential deepening rift between the two Gulf monarchies, according to sources with direct knowledge of the matter. The enhanced oversight, not previously disclosed, could explain recent difficulties in transferring funds from Saudi Arabia to the UAE, first reported by Bloomberg and the Financial Times in July.
Six businesspeople spoke to Reuters, stating their companies experienced delays or returned transactions without any official explanation. Saudi Arabia's central bank mandates additional scrutiny for high-risk financial activities, including money laundering and terrorism financing. The Saudi central bank clarified there are no direct restrictions on specific countries, emphasizing its robust regulatory framework aligned with FATF standards.
The UAE's economy ministry reported no such issues from private-sector companies. The enhanced scrutiny places the UAE among several high-risk regions in Saudi Arabia, including Lebanon, South Sudan, and Iraq. Despite maintaining strong economic ties, the two nations have diverged on various issues, including Yemen and Iran's conflicts.
The tensions have spurred Riyadh to seek cooperation with Iran and push for Saudi Arabia's leadership in the Gulf.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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