
Increased tensions between Saudi Arabia and the United Arab Emirates will result in heightened economic, diplomatic and defense competition, making it difficult for some businesses to operate in both countries and exacerbating security risks in countries like Sudan and Yemen. On July 18, The Wall Street Journal reported an uptick in tensions between erstwhile Arab Gulf allies, focusing on off-the-record comments made by Saudi Crown Prince Mohammed bin Salman made to reporters back in December 2022 in which he noted the United Arab Emirates had "stabbed us in the back" and threatened to take countermeasures because of perceived betrayals by the Emiratis. While the Saudi government did not confirm this report, the crown prince's alleged statements reflect underlying tensions between the two nations, which are driven by competition between their development models and their divergent foreign policies.