A few years ago, the United Arab Emirates and Saudi Arabia went as far as secretly drawing a plan for a political union.While a confederation did not materialize, the Gulf’s autocratic states fought rebels in Yemen and stood united in a boycott of Qatar for its alleged support for Islamism.
In the past few days, however, cracks in this unity have become apparent as the interests of Riyadh and Abu Dhabi diverge again on issues ranging from oil production, Yemen, normalization with Israel, and the way to handle the pandemic.
A videoconferenced meeting of Opec members and allies (Opec+) ended in deadlock on Friday after Saudi Arabia and Russia asked producers to increase production in the coming months. The request was designed to ease rising oil prices and extend an existing supply deal to ensure stability as the world embarks upon a fragile recovery out of the coronavirus pandemic.
But the UAE refused, digging its heels over a matter of its own output quota that it deems unfair. Opec members are reconvening on Monday.”The heightened competition within the Gulf states is across a number of economic policy issues,” said Karen Young, a senior fellow at the Middle East Institute. “Saudi Arabia has clearly upped the pressure, while the UAE is pushing to secure its own profit goals in this tight market. These energy giants are preparing for the next ten years of export revenue to sustain their political economies. ”
The UAE has sacrificed the most. We can’t make a new agreement under the same conditions — we have a sovereign right to negotiate. Other Opec+ countries are on board with the plan to increase production by400,000 barrels a day each month from August to December and to extend the deal beyond its scheduled April 2022 end date.