Saudi-UAE Tensions Seen Spilling into Economic Sphere

Dow Jones
Aug 20

1447 GMT - Tensions between Saudi Arabia and the United Arab Emirates are increasingly spilling into the economic sphere, says Jason Tuvey, deputy chief emerging markets economist at Capital Economics. Saudi Arabia's tighter oversight of financial transactions involving the U.A.E. is best viewed through the broader geopolitical tensions between the two countries, rather than solely through concerns over Emirati ties with Iran, he says. Tuvey expects the direct economic impact on Saudi Arabia and the U.A.E. to remain relatively small even if restrictions broaden, but says the consequences could be larger elsewhere in the region as the two countries compete for influence.

 

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