ISIDORA CIRIC (ABU DHABI)

The UAE and Saudi Arabia share one of the closest bilateral relations in the Gulf, built over decades of political trust, economic exchange and social connections that link their people across borders.

What began with historic bonds between their founding leaders has developed into a modern partnership that spans trade, defence, culture and technology.

Historic Bonds

The UAE-Saudi relationship is built on historic bonds of kinship, geography and common heritage. Even before the UAE's formation in 1971, communities in today's Emirates and Saudi Arabia shared tribal ties, trade links and Islamic traditions spanning centuries.

Formal diplomatic relations took shape with the founding of the UAE Federation, thanks in large part to the vision of the UAE's Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan and Saudi Arabia's King Faisal bin Abdulaziz Al Saud. The bilateral ties were later consolidated into full partnership under the late Sheikh Khalifa bin Zayed Al Nahyan and King Abdullah bin Abdulaziz Al Saud.

Shared religion, language and customs meant that Emiratis and Saudis always felt they were part of one Gulf family. Major diplomatic milestones over the decades reflect this deep-rooted camaraderie.

Saudi Arabia was among the first countries to welcome the newly formed UAE in 1971, setting the stage for close relations. Just three years later, in 1974, the two sides signed the Treaty of Jeddah, which peacefully defined their shared border and affirmed mutual respect for sovereignty.

The partnership deepened in 1981 when both nations became founding members of the Gulf Cooperation Council (GCC) in Abu Dhabi, with Sheikh Zayed hosting regional leaders to establish a bloc committed to coordination, collective security and economic integration.

In 2016, cooperation was given a more formal structure with the creation of the Saudi-Emirati Coordination Council, set up to institutionalise collaboration in military, political, economic, trade and cultural fields. By 2018, the council's first meeting had launched a joint vision built around 44 projects, marking an unprecedented level of policy alignment.

Economic Cooperation

Beyond politics, the UAE and Saudi Arabia enjoy a robust and growing economic partnership that benefits both nations' prosperity. In fact, Saudi Arabia is one of the UAE's top trading partners worldwide, it ranked as the UAE's leading export market in 2022.

The scale of trade between them is impressive and on the rise. Preliminary figures show that non-oil bilateral trade reached about Dh151.5 billion in 2024, and already Dh91 billion ($25 billion) in just the first half of 2025. At this pace, 2025 is on track to set a new record for commerce between the two countries.

Together, the two countries account for over half of the Arab world's total trade in goods and services, reflecting their status as regional economic powerhouses. In 2018 alone, they represented roughly 46% of the Arab world's GDP combined.

More importantly, the economic relationship is not just about trading oil or goods, it's forward-looking and diversified. Both governments are investing in Vision plans (Saudi Vision 2030 and UAE Centennial 2071) that emphasise diversification into industries like renewable energy, high-tech manufacturing, tourism, and the digital economy.

Rather than compete, there is a conscious effort to collaborate and create win-win ventures. A great example is the renewable energy sector: Abu Dhabi's clean energy company Masdar has opened an office in Riyadh and is actively developing solar and wind projects in Saudi Arabia, supporting the Kingdom's drive towards 50% renewable energy by 2030.

In 2025, a Masdar-led consortium achieved financial close on a 2 gigawatt solar plant in Saudi Arabia (one of the world's largest such projects), with Masdar's CEO affirming commitment to "supporting Saudi Arabia's clean energy objectives".

Conversely, Saudi companies are investing in the UAE – for instance, Saudi Arabia's ACWA Power has partnered in UAE renewable projects, and Saudi's Public Investment Fund is exploring opportunities in Emirati infrastructure and real estate.

Beyond energy, joint investments abound in other fields: Logistics and ports, aviation, and finance. There have even been discussions on linking financial markets to ease cross-border investment.

Both countries are also embracing the digital economy, sharing expertise on emerging tech, cybersecurity and fintech regulation through initiatives like the Digital Cooperation Organisation.

Cultural and Social Bonds

It is often said that a Saudi in the UAE feels the same warmth and welcome as at home, and vice versa. In fact, the UAE hosts a substantial Saudi community: In 2018, an estimated 85,000 Saudi citizens lived in the UAE, drawn by its educational opportunities, business environment and quality of life.

Likewise, Emiratis regularly travel to Saudi Arabia for religious pilgrimages (Hajj and Umrah), for business, or increasingly for tourism and cultural events in the Kingdom.

Many more Saudis frequent the UAE for holidays, studies or visiting friends. Saudi Arabia has become one of the top sources of tourists for the UAE (in 2020 it tied with India, each accounting for about 14% of inbound UAE visitors).

Importantly, leadership on both sides encourages these grassroots ties. Joint initiatives like the Saudi-Emirati Youth Council have been launched to bring young leaders together. There are also annual forums for writers, educators and entrepreneurs to collaborate and share their creativity and innovation with the region and the world.

On Saudi National Day each year, UAE landmarks light up in green (the colour of the Saudi flag) to share in the celebration, and UAE residents join their Saudi friends in festivities

At airports, Saudi travellers are often greeted with Arabic coffee, dates, sweets, flowers as they arrive, and special passport entry stamps.

These gestures capture the spirit of a relationship that has grown far beyond formal agreements. From historic foundations and strong economic links to cultural exchange and everyday social ties, the UAE and Saudi Arabia have built a partnership that continues to evolve with the times.

As both nations pursue ambitious development goals, their cooperation provides a stable framework for progress, ensuring that the connection between them remains central to the Gulf's future.