Western Firms Draw Up Contingency Plans Amid Saudi-UAE Tensions

Western business executives are reportedly preparing contingency plans as relations between Saudi Arabia and the United Arab Emirates deteriorate, raising concerns that the dispute could disrupt commercial operations across the Persian Gulf. According to a report by International media, some global investment banks fear they may eventually have to choose between expanding operations in Abu Dhabi or Riyadh if tensions continue to escalate.

The report said several companies have already developed contingency plans for worst-case scenarios, while others are reviewing contracts for force majeure provisions and reassessing business relationships that could leave them vulnerable to punitive measures from either country. It added that some international law firms have become more selective about the clients and cases they accept in an effort to avoid damaging ties with either Gulf state.

Media reported that investors are also adapting to a more uncertain business environment as geopolitical differences between Saudi Arabia and the UAE deepen. The two countries have reportedly diverged on issues including Yemen, Sudan, and Israel, with the report also noting that tensions increased following the recent US-Israeli military campaign against Iran and Tehran’s subsequent strikes on U.S. military bases in the region.