Three people familiar with the matter said Saudi Arabia has imposed additional
controls on financial transfers to banks in the United Arab Emirates, measures
typically applied to jurisdictions judged high-risk for illicit flows. The steps
have not been publicly announced but may explain why some firms recently
reported difficulty moving funds from Saudi accounts to the UAE; business
sources said transfers in multiple currencies were delayed or returned by Saudi
banks without explanation. The developments signal a widening rift between the
two Gulf states. The Saudi central bank said currently there are no direct
restrictions targeting specific countries.
