Strain in Saudi- UAE Relations. It is not mere economic factor which is behind current Saudi- Emirates strained relations but other important geo-strategic factors, the most important bein assertion of UAE as an important player in changed environments. The first factor is oil. In recent OPEC meeting Saudi Arabia called for capping of production while UAE not only refused to accept but also lobbied with other members for increased production. Second, UAE has decided to minimize if not finish its presence in Yemen . Third, UAE favors a thaw in its relations with Qatar .Fourth, Saudi diversification of its economy & revised tariff structure on imports from UAE, announcement of a new airline and new tech city are likely to impinge on UAE economic interests. Fifth, UAE diplomatic relations with Israel have given them leverage to Jewish lobbies in US . The most significant advantage from this is likely to be supply of Abu Dhabi oil from Red Sea city of Eilat to Mediterranean city of Ashkelon, as a result of deal with Israeli company EAPC.
These factors would attribute towards further impediments in future. In this there are opportunities for Qatar,Iran and necessitates a close watch by Pakistan to strike a balance in bilateral relations with traditional,supposed allies .