Yemen conflict strains UAE-Saudi relations: events, outlook and implications

GULF COUNTRIES - Report 02 Jan 2026 by Justin Alexander

* Saudi Arabia demanded that UAE-backed South Yemen separatists withdraw from the east.
* It launched airstrikes on STC positions and on a military shipment from the UAE.
* The UAE’s decision to withdraw its counterterrorism forces from Yemen may de-escalate bilateral tensions.
* However, the STC is unwilling to withdraw and is contemplating an independence declaration.
* Israel’s recognition of neighboring secessionist state (and UAE ally) Somaliland is a wildcard.
* Differences in geopolitical risk perceptions partly explain the rifts over Yemen (and also Sudan).
* A sustained UAE-Saudi rift could undermine recent progress on GCC integration.
* It might also complicate joint action, including on Bahrain, and decision-making in OPEC+.
* The other Gulf states do not want to pick sides in this dispute, and some are seeking to mediate.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2026 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.