Overview
- Saudi Arabia’s central bank quietly told major banks earlier in 2026 to apply enhanced checks to payments bound for the UAE, placing those transfers in the same higher‑risk category used for jurisdictions flagged for money‑laundering concerns.
- Companies have reported delayed or returned transactions since mid‑May, with at least six business leaders telling reporters their transfers were held up or blocked without clear explanations.
- Some firms are routing payments through third countries such as Bahrain to bypass processing bottlenecks, a workaround that raises costs and adds new points of strain in Gulf payment flows.
- Both SAMA and the UAE economy ministry have publicly denied imposing formal country‑specific bans, saying banks apply risk‑based controls and that no widespread complaints have been recorded.
- Analysts say the move risks raising transaction costs and creating regional chokepoints but note a full economic rupture is unlikely given deep trade, investment and logistics ties and recent tensions tied to the UAE’s April 28, 2026 OPEC exit.