Several Emirati defense companies appear to have withdrawn from Saudi Arabia’s World Defense Show as tensions between the United Arab Emirates and Saudi Arabia increasingly spill into business activity, according to reports from Reuters and Breaking Defense.
The five-day exhibition started on Sunday in Riyadh.
What Happened at the World Defense Show?
Multiple Emirati defense firms were largely absent from the show floor, despite numerous UAE-linked entities being listed as exhibitors. Some defense products tied to UAE companies were displayed through affiliated corporate entities rather than under Emirati branding.
What Is Driving the UAE-Saudi Dispute?
The pullback comes amid growing political friction between Abu Dhabi and Riyadh, following a public escalation tied to developments in Yemen in recent months. The dispute emerged in December when Saudi-led forces struck a UAE-linked weapons shipment at the port of Mukalla in response to UAE-backed southern Yemeni separatists advancing toward the Saudi border. It has widened beyond military coordination into concerns about how geopolitical rivalry could affect commercial engagement.
Could the Fallout Extend Beyond Defense Events?
The defense show withdrawal is being viewed as a sign that geopolitical tensions could begin to affect commercial and investment relations between the two countries, which have deep economic integration.
Saudi Arabia and the UAE maintain roughly $30 billion in trade ties, with frequent movement of goods and business leadership between the two markets.
Concerns have also surfaced within the regional business community that a prolonged dispute could raise the risk of restrictions similar to those seen during the 2017 blockade of Qatar.