Saudi Arabia and the United Arab Emirates maintain formal diplomatic relations and extensive economic integration despite ongoing strategic frictions that intensified in late 2025. Proxy competition in Yemen peaked with clashes over UAE-backed Southern Transitional Council advances, prompting Saudi military and diplomatic pushback followed by Emirati withdrawal; similar divergences have surfaced in Sudan and Somalia. The UAE’s April 2026 exit from OPEC further highlighted policy differences on oil production and regional influence. Traders assign only a 4.5% probability to severance in 2026 because deep trade, investment, logistics, and GCC institutional links create strong incentives against rupture, with neither side showing intent to cross that threshold. Plausible triggers for change would require rapid escalation into direct confrontation or a fundamental realignment of leadership priorities before year-end.