Unexplained delays and blocks reportedly hit Saudi to UAE bank transfers

Saudi-UAE transfers getting stuck? Payments from banks in Saudi Arabia to accounts in the UAE have been delayed, returned, or blocked outright since at least May, often with no explanation from the banks moving them, a source in the know tells EnterpriseAM, confirming news first picked up by the Financial Times and Bloomberg.

What’s going on? The alleged cases involved money leaving a Saudi account and never landing in Dubai, some transfers held for about a week and then bouncing back, and electronic payments refused with a mere “transaction failed,” the FT reports.

What we’re hearing: Our source says the issue has been happening for about a month. They think it most likely reflects the Saudi Central Bank tightening compliance screening on inbound and outbound transfers rather than a blanket block.

Official statements point in the same direction. The Saudi Central Bank said the financial sector “operates within a robust regulatory framework” with “no direct restrictions on specific countries,” and that banks “apply risk-based measures consistently across all transactions.” The UAE’s economy ministry also said it has had no complaints from private-sector firms about transfer problems.

If true, this would create friction in the Arab world’s largest trade relationship. Bilateral trade between the two hit USD 25.7 bn last year, up from USD 21.7 bn in 2024, and many firms run their Saudi-facing business through Dubai hubs. Some companies caught in the delays are reportedly already rerouting through Bahrain or onto costlier rails like PayPal to keep goods moving.

Why it matters: The backdrop is the sharpest UAE-Saudi rift in years, with tension over Yemen reaching a boiling point in December, followed by Abu Dhabi’s April exit from Opec. Whether these snags are routine de-risking or a symptom of that strain, they raise the cost and the uncertainty of moving money between Dubai and Riyadh.