Saudi Arabia has begun enforcing stricter visa controls on employees and executives based in the United Arab Emirates, a move that reflects deteriorating diplomatic relations and Riyadh’s intensifying efforts to position itself as the Gulf’s preeminent corporate hub.
In late January, companies across banking, consulting, legal services, and energy sectors have reported sudden rejections or unexplained delays when applying for Saudi business visas from UAE offices. Saudi officials insist no formal policy change has occurred.
Saudi-UAE tensions witnessed a sharp escalation recently after Riyadh accused Abu Dhabi of backing Yemeni separatist factions, which it deemed a direct threat to Saudi security interests. The standoff ended with a Saudi ultimatum and an Emirati pledge to withdraw from Yemen.
The diplomatic conflict may create uncertainty for UAE-based businesses that rely on frictionless access to the much bigger Saudi economy.
The pressure extends beyond visa policy. Saudi Arabia has also reportedly created delays for Emirati goods at the land border between the two countries.
Mahmoud Elwakil, Saudi Arabia Country Manager at RIF Trust, confirms that authorities are now “applying pressure” on UAE-based companies that conduct substantial operations across the border.
“They’re trying to enforce the regional HQ policy, but I don’t think the pressure will last long,” Elwakil says, referring to Saudi Arabia’s Regional Headquarters Program, which it launched in 2021, requiring multinationals to establish their Middle East headquarters in Riyadh by 2024.
While initially targeting large corporations competing for lucrative state projects, enforcement appears to be expanding to smaller firms operating cross-border.
The Mechanics of Enforcement
The reported restrictions primarily affect those who have traditionally relied on renewable six-month commercial visit visas to travel regularly between the emirates and the kingdom for client meetings, exhibitions, and business development.
Authorities are declining to renew visas or outright rejecting new applications, particularly for nationals from countries such as Jordan, Egypt, Pakistan, and India.
Elwakil notes that holders of strong, typically Western, passports retain some flexibility.
“Most people with strong passports can enter Saudi Arabia with a visa-on-arrival, and others with weak passports can do the same by having a valid Schengen or US visa that’s been used at least once,” he explains.
The restrictions don’t affect Emirati citizens, who, like all GCC nationals, enjoy freedom of movement and settlement rights throughout Saudi Arabia and the wider Gulf region.
According to a consultant who spoke to IMI Daily, requesting anonymity, Saudi authorities are effectively “pushing everyone” in the UAE to apply for work residencies in Saudi Arabia rather than continue using commercial visit visas.
He says the government's goal is clear: force companies "to open Saudi HQs or branches and pay all associated fees and costs."
The source reveals these restrictions began quietly tightening "approximately a year ago" but accelerated sharply in December and January as political tensions flared.
Some firms have reportedly resorted to applying through branch offices in Qatar and Bahrain. Others are directing employees to enter on standard tourist visas obtained on arrival, which may carry legal risk, as tourist visa holders aren’t legally permitted to work.
Historical Precedents
Elwakil emphasizes that the level of tension and resulting policy enforcement often fluctuates within the GCC.
"Whether this policy becomes the norm will depend on the level of tension and political pressure," Elwakil says. He notes that such restrictive episodes typically emerge during GCC diplomatic rifts, but tend to reverse once relations stabilize.
He cites restrictions on Turkish brands during a prior diplomatic spat with Turkey, which he says ultimately reversed once relations normalized.
Also, Saudi Arabia and its allies blockaded Qatar in 2017, sealing borders, banning flights, and cutting diplomatic ties; the blockade initially crippled Qatar's economy and forced the country to airlift food supplies.
Four years later, the blockade ended as abruptly as it began with a reconciliation agreement that restored full relations.
But Saudi Arabia may adopt a softer approach with the UAE, which has the region's most diversified and second-largest economy. The Saudi and Emirati markets are "highly integrated" at this point, Elwakil notes, and reduced integration "would be bad for both parties."
Yet he acknowledges the shift may prompt companies to rethink their Gulf footprint, potentially incentivizing UAE-based businesses to open Saudi operations to avoid such uncertainty in the future, which may also increase the appeal of the Saudi Premium residency.
The Premium Residency Push
Saudi Arabia has been expanding its Premium Residency program, which offers long-term residency for investors, researchers, and high-income executives.
Saudi sources told Bloomberg last week that the kingdom is considering a further expansion to include individuals with net worths exceeding $30 million and superyacht owners, mirroring elements of Abu Dhabi's Golden Quay program that targets ultra-wealthy maritime investors.
The current Saudi framework operates through four primary pathways:
- Real estate investors must acquire mortgage-free residential property valued at a minimum of SAR 4 million ($1 million).
- Business investors face higher thresholds: obtaining an investment license, investing at least SAR 7 million ($1.9 million) within two years, and employing at least ten Saudi nationals.
- The exceptional competence route is for researchers, senior executives, and high-performing professionals, with minimum salary requirements ranging from roughly $4,000 dollars per month for researchers to approximately $21,000 for top-tier executives.
- The donation pathway allows a non-refundable donation of $700,000 to qualify.
The Premium Residency has attracted over 40,000 applications since its 2024 overhaul, with 8,074 permits issued throughout that year.
Elwakil says authorities are heavily promoting the real estate route, but the $1 million threshold makes it highly inaccessible for most, placing it among the world's most expensive investor visas.
Most of Elwakil's Premium Residency clients to date have been existing Saudi residents with high salaries who qualify under the executive category, or residents with considerable savings who are pursuing the real estate route.
"A few have used the $700,000 donation route, but it's the least preferred option," Elwakil says.
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