Some UAE companies have withdrawn from the World Defense Show in Riyadh, scheduled for February 8-12. Sources say the move reflects rising tensions between Saudi Arabia and the UAE. It is unclear whether all UAE participants in the country pavilion have pulled out. Neither the UAE foreign ministry nor Saudi government media has commented on the withdrawals.
The decision comes amid a broader Gulf rift that is now affecting business relations. Saudi Arabia and the UAE were once strong allies in regional security and trade. Disagreements have emerged over oil quotas, geopolitical interests, and Yemen. The conflict became public in December after a UAE-backed Houthi advance threatened Saudi borders, prompting a Saudi-led strike on a UAE-linked weapons shipment.
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The UAE has since pulled all its forces out of Yemen, but tensions persist. Saudi officials allege the UAE assisted a Yemeni separatist leader to escape through Somalia. Analysts say the defence show withdrawal signals that political disagreements may spill over into trade and investment ties. This could affect joint projects and contracts across the Gulf region.
Despite these tensions, routine cross-border business largely continues. Some companies have quietly prepared for disruptions in trade and defence deals. Observers note that while day-to-day commerce remains stable, political disputes are beginning to trickle down to the corporate level. The defence sector could face delays, cancellations, or reduced participation if the rift escalates.
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The World Defense Show remains a major event for regional and international arms industries. Analysts will watch closely whether other countries or companies follow the UAE’s lead. The developments underline how geopolitical tensions between Gulf powers can influence both politics and commerce across the region.