ISLAMABAD: Some defence companies from the United Arab Emirates havewithdrawn their participation from the upcoming World Defense Show inRiyadh, highlighting escalating tensions between the two Gulf powers thatnow appear to affect commercial and business interests beyond the politicalsphere.
The decision, reported exclusively by Reuters on February 6, 2026, comesjust days before the major defence exhibition is scheduled to open in theSaudi capital from February 8 to 12. Sources with direct knowledge of thematter indicated that the withdrawals reflect a broader rift that hasspilled over from geopolitical disagreements into trade and investmentrelations, which have long bound the two oil-rich nations together.
Analysts view this move as a significant indicator of deterioratingrelations, particularly following recent developments in Yemen where SaudiArabia has reasserted dominance after pushing Emirati forces out of theconflict zone. The UAE’s complete withdrawal of its remaining troops fromYemen late last year marked a turning point, leading to accusations andcounter-accusations that have strained bilateral ties.
In December 2025, tensions boiled over when Saudi-led coalition forcesstruck what was described as a UAE-linked weapons shipment at the port ofMukalla, prompting the UAE to announce the voluntary end to itscounterterrorism mission in the country. Saudi Arabia supported demandsfrom Yemen’s presidential council for Emirati forces to depart within 24hours, underscoring Riyadh’s determination to consolidate control oversouthern Yemen.
The rift has roots in divergent strategic interests in Yemen, where the UAEbacked the Southern Transitional Council separatists while Saudi Arabiaprioritised unity under the internationally recognised government. RecentSaudi-backed offensives routed UAE-aligned groups, prompting Riyadh topledge hundreds of millions in development projects for areas previouslyunder Emirati influence.
This commercial withdrawal from the World Defense Show, an event aimed atshowcasing military technologies and fostering defence partnerships,suggests that political friction is now impacting sectors once consideredinsulated from such disputes. Gulf financial hubs have historically pridedthemselves on stability to attract investment, making any sign ofbusiness-level discord particularly noteworthy.
It remains unclear whether the pullout involves all UAE entities listedunder the national pavilion or only a portion of participants. Neither theUAE foreign ministry nor Saudi government media has issued officialcomments on the withdrawals, leaving room for speculation about the scaleand intent behind the decision.
Broader context reveals ongoing competition between Saudi Arabia and theUAE in attracting global capital, managing regional alliances, and pursuingambitious economic visions. Saudi Vision 2030 and UAE’s own diversificationplans have occasionally led to friction, but analysts note that deepeconomic interdependence makes a full trade boycott unlikely.
Despite the tensions, trade and investment flows between the two countrieshave remained resilient in recent years, as both prioritise regionalstability to support long-term growth objectives. Experts suggest thatwhile symbolic gestures like event withdrawals highlight discord, they areunlikely to escalate into widespread economic measures that could undermineinvestor confidence.
The World Defense Show serves as a key platform for Gulf states to displaymilitary advancements and secure deals, drawing international exhibitorsand delegations. The absence of UAE firms could diminish the event’sregional representation and signal to global partners the depth of currentdivisions.
Observers point to Yemen as the primary catalyst for the current strain,with Saudi Arabia deploying significant financial resources and politicalcapital to stabilise areas after ousting Emirati influence. Riyadh’sactions aim to pressure Houthi rebels toward negotiations while addressingperceived threats from separatist advances near its borders.
The developments underscore the complex dynamics within the GulfCooperation Council, where historical alliances are tested by competingambitions in security, economy, and foreign policy. As both nationsnavigate these challenges, the impact on defence cooperation and jointventures remains under scrutiny.
This incident may prompt renewed diplomatic efforts to mend ties, given themutual interest in maintaining a united front against shared regionalthreats. However, the public nature of the withdrawal indicates thatunderlying issues require substantial resolution to prevent furtherspillover effects.
Source:https://www.reuters.com/world/middle-east/some-uae-companies-pull-out-defence-show-saudi-arabia-tensions-linger-2026-02-06
Saudi Arabia, United Arab Emirates, World Defense Show, Yemen Conflict
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