{"text":[[{"start":12.35,"text":"Saudi Arabia has been blocking or delaying financial transfers from banks in the kingdom to accounts based in the United Arab Emirates, raising concerns among businesses that friction between the Gulf powerhouses is spilling over into trade."}],[{"start":26.5,"text":"Multiple people told the FT that payments from Saudi entities to the UAE accounts of companies and individuals based in Dubai had since May either been returned or delayed by the kingdom’s banks, without any clear explanation."}],[{"start":40.8,"text":"A western executive with a Dubai-based healthcare firm said three payments from a Saudi client it has been trading with for several years had been blocked and returned by their Saudi banks since mid-May. The executive said the funds were “typically held for about a week with no query raised to sender or beneficiary, then simply returned”."}],[{"start":60.4,"text":"“They’ve even tried to make a transfer personally but that gets blocked too,” the executive said. “They spoke to the bank guys and got very sheepish answers. They are saying there’s a block from the [Saudi] central bank and they can’t really give more detail than that.”"}],[{"start":75.3,"text":"Saudi Arabia’s central bank said the financial sector “operates within a robust regulatory framework” and there were “no direct restrictions on specific countries; banks apply risk-based measures consistently across all transactions to safeguard the integrity of the financial system”."}],[{"start":92.4,"text":"Another Dubai-based executive said his payments from a Saudi business now “take a long time”."}],[{"start":98.75,"text":"“We have a customer waiting for goods, but the payment is not happening,” that executive said. “A lot of suppliers [for Saudi Arabia] come from the UAE, by doing this they are shooting themselves in the foot.”"}],[{"start":110.7,"text":"Saudi Arabia and the UAE boast the Arab world’s biggest economies and are major trading partners with annual bilateral trade of more than $20bn. Many companies use Dubai as a hub to serve the kingdom and flights to the kingdom are still packed, executives say. "}],[{"start":127.35,"text":"But tensions between the two have escalated since Riyadh accused Abu Dhabi of backing a secessionist Yemeni faction that launched an offensive against Saudi-aligned forces in Yemen in December. "}],[{"start":139.5,"text":"The kingdom accused the UAE — which had been its main partner in a Saudi-led coalition that intervened in Yemen’s civil war in 2015 to fight Iranian-backed Houthis — of threatening its national security interests by backing the offensive."}],[{"start":154.75,"text":"That crisis triggered the biggest rupture between the Gulf neighbours in decades and exacerbated long-simmering tensions over economic competition and differences over their approaches to conflicts in the region."}],[{"start":166.3,"text":"The US and Israel’s war against Iran initially appeared to ease the spat as Gulf states sought to put on a unified front after they became the main target of the Islamic republic’s retaliation."}],[{"start":178.4,"text":"But analysts say it merely papered over the cracks, and in late April, the UAE shocked its neighbours by announcing it was leaving Opec, the oil cartel of which Saudi Arabia is the de facto leader. "}],[{"start":189.85,"text":"The UAE — which was Opec’s third-largest producer — insisted the move was related to its “economic vision and evolving energy profile”. But Abu Dhabi had long been frustrated with production quotas imposed by Opec and the decision was viewed as dealing a blow to Saudi Arabia. "}],[{"start":207.04999999999998,"text":"Saudi officials have previously insisted the political spat with the UAE would not affect trade or economic relations."}],[{"start":213.99999999999997,"text":"An Emirati official said its economy ministry had not received any complaints or reports from private-sector companies regarding difficulties or unusual delays in completing bank transfers between the UAE and Saudi Arabia."}],[{"start":229.14999999999998,"text":"“The UAE and Saudi Arabia maintain deep and longstanding economic and commercial ties,” the official said. “We remain in regular engagement with the private sector and relevant stakeholders, and would review any specific concerns brought to our attention through the appropriate channels.”"}],[{"start":245.54999999999998,"text":"But an Emirati businessman said after his company had faced unexplained blocks on bank transfers from Saudi Arabia to the UAE, he had to reroute the money via Bahrain."}],[{"start":256.59999999999997,"text":"Another Dubai-based services provider had a bank payment from a Saudi client cancelled last month, forcing them to use the more expensive option of PayPal."}],[{"start":266.04999999999995,"text":"“I got no info from the bank, nor did the Saudi guys — it just said ‘transaction failed’,” they said."}],[{"start":273.19999999999993,"text":"One multinational company also faced troubles transferring money from the kingdom to another firm in the UAE, according to a senior banking executive."}],[{"start":281.69999999999993,"text":"“You have some transfers that were stopped, it was very bizarre . . . some very small ones, we’re not talking about millions,” the executive said."}],[{"start":290.79999999999995,"text":"Another person familiar with the matter said people transferring money between their own accounts or to family and friends had also been running into issues in recent weeks."}],[{"start":309.29999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783498935_6311.mp3"}