Saudi Arabia and the Emirates must resolve their own differences
The Economist
February 19, 2026
AI-Generated Deep Dive Summary
The deepening rift between Saudi Arabia and the United Arab Emirates (UAE) highlights a growing tension between two key US allies in the Gulf region. Despite their shared economic prosperity from oil and gas resources and their strategic partnership within the Gulf Co-operation Council, personal, political, and economic rivalries are creating divisions that could have far-reaching consequences for regional stability.
The conflict stems from competing visions for leadership and influence in the Middle East. Both nations have demonstrated divergent approaches to regional issues, such as energy policies, political alliances, and diplomatic engagement. For instance, Saudi Arabia's cautious stance toward Iran contrasts with the UAE's more pragmatic relations with Tehran, while their differing positions on Qatar and efforts to mediate regional disputes have further strained ties.
Economically, the rivalry extends to infrastructure investments, renewable energy projects, and tourism development, where both countries are vying for global influence. Additionally, the UAE's growing assertiveness in international affairs, including its leadership role in the Abraham Accords, has reportedly unsettled Saudi leaders. This tension is compounded by the fact that neither side appears willing to compromise, leaving the situation unresolved and potentially destabilizing.
From a business perspective, this divide could disrupt regional economic cooperation, impact global energy markets, and affect US interests in the region. The lack of American engagement, as noted by critics, has allowed this tension to fester, raising concerns about its long-term implications for Gulf stability and US influence in the Middle East. Resolving these differences is crucial
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Originally published on The Economist on 2/19/2026