Exclusive: Some UAE Companies Pull Out of Saudi Defence Show as Gulf Rift Spills Into Business

In a development that highlights the lingering fault lines within the Gulf, several companies based in the United Arab Emirates have quietly withdrawn from a major defence exhibition in Saudi Arabia, according to industry sources. While official statements remain scarce, the pullouts point to how unresolved political and strategic tensions between regional heavyweights are beginning to spill over into business, even in sectors long viewed as insulated from diplomatic disagreements.

The defence show, designed to showcase cutting-edge military technology and attract global arms manufacturers, has become one of Saudi Arabia’s flagship events as the kingdom seeks to localize defence production and position itself as a regional security hub. Participation from neighboring Gulf states, particularly the UAE, has traditionally been seen as a symbol of unity and shared strategic purpose. This year’s reduced Emirati presence therefore stands out.

A Quiet Exit, Loud Implications

Sources familiar with the matter say that the withdrawals were not announced publicly and were framed internally as “logistical” or “strategic” adjustments. However, industry insiders note that the timing coincides with renewed strains in Saudi-UAE relations, including differences over regional security priorities, economic competition, and diverging diplomatic approaches in hotspots such as Yemen and the Horn of Africa.

“These exhibitions are not just trade fairs; they are political statements,” said one defence analyst. “Who shows up, who doesn’t, and how prominently they participate all send signals.”

For years, Riyadh and Abu Dhabi were seen as closely aligned partners, coordinating on military campaigns and regional diplomacy. But that alignment has frayed as both countries pursue ambitious national agendas. Saudi Arabia’s push to become the dominant investment and manufacturing hub in the Middle East has, at times, clashed with the UAE’s established role as a regional business gateway.

Defence Industry Caught in the Middle

The defence sector is particularly sensitive to shifts in political trust. Joint ventures, technology transfers, and co-production agreements require long-term confidence and close government backing. Even subtle diplomatic cooling can make companies cautious about visibility and commitments.

Several UAE-based firms had reportedly planned to use the Saudi exhibition to explore partnerships linked to the kingdom’s localization drive, which aims to produce a significant share of military equipment domestically by the end of the decade. Their absence may complicate those efforts, or at least signal that cooperation will be more selective.

At the same time, Saudi officials have emphasized that the exhibition remains well-attended, with strong participation from European, Asian, and North American defence giants. From Riyadh’s perspective, the event still demonstrates Saudi Arabia’s growing clout as a defence market and industrial player.

Beyond Politics: Economic Rivalry

While political differences form the backdrop, economic rivalry is increasingly at the forefront. Saudi Arabia has introduced policies encouraging multinational firms to move regional headquarters to the kingdom, a move widely interpreted as a challenge to Dubai’s long-held status as the Middle East’s commercial center.

In this context, defence exhibitions and large-scale trade shows become arenas of competition as much as cooperation. Decisions about participation are weighed not only for immediate commercial gain, but also for how they align with national economic strategies.

“Companies are being asked, implicitly or explicitly, to choose sides,” said a regional business consultant. “That’s a new dynamic in the Gulf, where for decades the emphasis was on complementarity rather than competition.”

Regional Unity Under Strain

The episode also raises broader questions about Gulf unity at a time of heightened regional uncertainty. From Red Sea security to shifting great-power involvement in the Middle East, Gulf states face shared challenges that arguably call for deeper coordination, not fragmentation.

Defence cooperation has historically been one of the strongest pillars of Gulf collaboration, reinforced through joint exercises, shared procurement, and intelligence coordination. Any visible cracks in that pillar risk sending mixed messages to allies and adversaries alike.

However, analysts caution against overstating the significance of the withdrawals. They note that business decisions can be reversed quickly, and that behind-the-scenes military and intelligence ties between Saudi Arabia and the UAE remain substantial.

What Comes Next

Whether the pullouts mark a temporary dip or a longer-term trend will depend on how political relations evolve in the coming months. If Riyadh and Abu Dhabi find ways to manage their rivalry and clarify areas of cooperation, future exhibitions may once again see strong cross-Gulf participation.

For now, the episode serves as a reminder that in today’s Gulf, business and politics are increasingly intertwined. Defence shows, investment forums, and trade expos are no longer neutral ground; they are extensions of national strategy.

As Gulf states pursue ambitious visions of economic transformation and regional influence, companies operating in the region will need to navigate a more complex landscape—one where attendance at a trade show can carry diplomatic weight, and absence can speak just as loudly.