While many commentators have been keen to interpret Saudi Arabia’s attempts to transform Riyadh into the Middle East’s economic capital as a threat to the economic interests of the United Arab Emirates (UAE), a more nuanced analysis suggests something akin to a rising tide that will lift all boats.
When Saudi Arabia announced plans in February requiring international companies to have their regional headquarters in the Kingdom as a precondition for participating in government contracts from 2023 onward, many interpreted the move as a shot across the bow at the UAE since Dubai is the location of choice for most companies operating in the region. A regional headquarters is what economists call an indivisible asset, which can’t be divided into smaller pieces—meaning that Riyadh’s gain must be Dubai’s loss. This has set the stage for the narrative of an economic war between Saudi Arabia and the UAE.
Saudi Arabia’s economic transformation benefits the UAE too – Atlantic Council
