Bloomberg: Unusual Delays in Bank Transfers Between Saudi Arabia and the UAE

SadaNews - Bank transfers from Saudi Arabia to the UAE have experienced unusual delays over the past few weeks, raising concerns among companies and individuals working between the two largest Arab economies.

According to knowledgeable sources who requested anonymity due to the sensitivity of the information, these delays have affected various sectors, with no clear reasons or defined extent of their occurrence.

Several individuals reported facing issues where money left accounts within Saudi Arabia without reaching the intended beneficiaries in the UAE, or being returned to the senders, alongside disruptions in electronic payments between the two markets. This has led some to reroute transfers through other countries that appear unaffected by the issue, according to some insiders.

Intertrade Exceeds $25 Billion

Saudi Arabia and the UAE host sovereign wealth funds managing assets of around $3 trillion, making them among the largest sources of capital for "Wall Street." In recent years, there has been competition between the two countries for the leading regional position in sectors ranging from finance to artificial intelligence. This has forced companies to maintain a delicate balance in their presence in the two largest economies in the region.

In December, there were tensions related to military operations in Yemen. The UAE announced in April its withdrawal from "OPEC," which Saudi Arabia is considered the actual leader of.

Numerous institutions, including banks and multinational companies, operate extensively in both countries. Total trade between Saudi Arabia and the UAE rose to $25.7 billion last year, compared to $21.7 billion in 2024, according to data collected by "Bloomberg." This came after years of efforts to deepen financial integration, including establishing a shared regional payment infrastructure.

Reassurances from Saudi Arabia and the UAE

The Saudi Central Bank, in a statement to "Bloomberg News," said that the financial sector in the Kingdom operates within a strong regulatory framework, without clarifying whether there are new regulations or recent increases in transfer durations. It added: "There are no direct restrictions on specific countries, as banks apply risk-based procedures consistently across all transactions to preserve the integrity of the financial system."

The statement clarified that banks operating in the Kingdom apply controls and preventative measures to mitigate risks based on their internal assessments and institutional risk appetite, along with evaluating various risk factors.

For its part, an Emirati official stated that the Ministry of Economy and Tourism had not received any complaints or reports from private sector companies regarding unusual difficulties or delays in completing bank transfers between the two countries.

The official added in a statement: "The UAE and Saudi Arabia maintain deep and long-standing economic and trade relations, supported by significant flows of trade and investment between the two countries." He continued: "We continue to communicate regularly with the private sector and relevant parties, and we will review any specific concerns presented to us through appropriate channels."