The long-standing alliance between Saudi Arabia and the United Arab Emirates is showing deeper strain, with growing competition over oil policy, regional conflicts and economic influence driving the two Gulf powers further apart.

The UAE’s decision to step away from OPEC has highlighted widening differences with Saudi Arabia, which has traditionally dominated the oil producers’ bloc and used its influence to shape global energy markets.

The move signals Abu Dhabi’s push for greater flexibility to expand production and pursue its own energy strategy.

The divergence reflects a broader breakdown in relations that were once defined by close cooperation.

A decade ago, Saudi Crown Prince Mohammed bin Salman and UAE leader Sheikh Mohammed bin Zayed were aligned on regional security, working together in Yemen, isolating Qatar and opposing Iran’s influence.

However, relations have shifted as both countries pursue competing economic visions.

Saudi Arabia’s push to become a global business and tourism hub has placed it in direct competition with the UAE, particularly Dubai, which has long been the region’s financial centre.

Riyadh’s requirement for international firms to establish regional headquarters in Saudi Arabia has further intensified rivalry.

The competition has also extended into emerging sectors such as artificial intelligence, renewable energy and infrastructure, where both countries are investing heavily to attract global capital.

Differences have also emerged in regional conflicts. In Yemen, the Saudi-led coalition initially presented a unified front with the UAE against Iran-backed Houthi forces.

Over time, however, the two countries backed different local partners, with the UAE supporting separatist groups in the south while Saudi Arabia focused on preserving Yemen’s territorial unity.

Similar divisions have appeared in Sudan’s ongoing civil war, where Saudi Arabia has backed the national army while the UAE has been accused of supporting rival paramilitary forces, allegations Abu Dhabi denies.

Despite rising tensions, both governments continue to maintain diplomatic ties and coordinate on certain security issues.

Saudi Arabia recently expressed support for the UAE following reported Iranian attacks, underscoring that cooperation has not completely broken down.

However, the UAE’s withdrawal from OPEC and ongoing strategic differences suggest that the rivalry between the two Gulf powers is likely to shape regional politics and energy markets in the years ahead.