Saudi Central Bank is reportedly subjecting UAE-bound transfers to high-risk scrutiny

The Saudi Central Bank (Sama) reportedly placed financial transfers to the UAE under additional scrutiny, Reuters reports, citing unnamed sources. The UAE is reportedly among more than half a dozen countries in the region deemed high-risk for financial crimes by Sama.

The central bank reportedly notified major banks earlier this year to apply the additional oversight measures to settlements with the UAE. Several executives told the newswire that Saudi banks delayed or returned transfers in various currencies without providing an official explanation. A banking source had also told EnterpriseAM last month that some payments from banks in Saudi Arabia to accounts in the UAE have been delayed, returned, or blocked outright since at least May, confirming reports first picked up by the Financial Times and Bloomberg.

Some Saudi clients have asked UAE-based firms to relocate operations elsewhere entirely. The head of a Dubai-based consultancy told Reuters that some of his Saudi clients were struggling to pay him — and had suggested he do just that. Other companies said local authorities had asked them not to do business with UAE-based firms.

The official line, on both sides, remains that there’s no story. Sama denied the presence of restrictions on specific countries, and a UAE official also told Reuters that the Economy Ministry received no reports from firms about facing such difficulties.

Background: The UAE and the Kingdom have had conflicting views over oil quotas and geopolitical influence and have competed for foreign capital and talent for the past couple of years. The rift later reached a boiling point over tensions over Yemen in December and was not helped by Abu Dhabi’s April exit from Opec.