Saudi Arabia and the United Arab Emirates, once close Gulf allies, have entered open hostility after years of quiet disagreements. On Tuesday, Saudi forces carried out an airstrike on Yemen’s southern port of Al-Mukalla, claiming it targeted a weapons shipment from the UAE intended for the separatist Southern Transitional Council (STC). Riyadh accused Abu Dhabi of endangering Saudi security through “dangerous behavior,” while the UAE dismissed the allegations as “fundamentally false.” The exchange has triggered a war of words between commentators from both nations.

Analysts cited in the report say the rift has been building for years, with disputes over oil policy, Sudan’s conflict, and Yemen’s internal divisions. The UAE supports paramilitary and separatist groups such as the STC and Sudan’s Rapid Support Forces, while Saudi Arabia backs national armies and seeks to preserve existing regional borders. The two also diverged over Somalia’s recognition of Somaliland, with the UAE absent from a joint condemnation led by Saudi Arabia.

Experts warn that the growing divide could reshape Middle Eastern alliances in 2026, as reconciliation mechanisms appear to have failed.

Analysts are closely watching how the Middle East’s geopolitical and security landscape will evolve in 2026. The region faces multiple flashpoints, including a fragile ceasefire between Israel and Iran, renewed fears of Israeli military operations in Gaza, challenges confronting Syria’s post-Assad government, and intensifying competition between Saudi Arabia and the United Arab Emirates over influence in Sudan and Yemen.

The Israel-Iran truce, brokered by the United States after a 12-day war in June 2025, remains unstable amid concerns over Iran’s missile drills and Israeli pressure for renewed strikes. In Gaza, Israel has violated the October ceasefire more than 730 times, killing over 400 Palestinians, raising doubts about the durability of peace efforts. Meanwhile, Syria’s new government under President Ahmed al-Sharar faces internal and external threats, with its stability depending on Gulf, Turkish, and European support.

Analysts also highlight growing Saudi-UAE rivalry, with both backing opposing factions in Sudan and Yemen. This competition could deepen rifts between the two Gulf powers despite U.S. efforts to mediate. The overall regional outlook remains uncertain as multiple conflicts threaten to reshape alliances and power balances.

Israel’s decision to recognize Somaliland as an independent state has complicated its efforts to normalize relations with Saudi Arabia, according to a senior source from the Saudi royal family quoted by Israel’s Channel 12 on Sunday. The source said the move angered Riyadh and pushed the possibility of diplomatic normalization further away, warning that it increases Israel’s isolation across the region.

The Saudi source described the recognition as equivalent to endorsing separatism and a violation of regional security. He cautioned that the decision challenges Arab and Muslim nations that have not recognized Somaliland, including Egypt, the United Arab Emirates, Bahrain, Morocco, and Sudan. The source also argued that Israeli Prime Minister Benjamin Netanyahu’s pursuit of a second term is fueling regional instability and undermining Somalia’s UN-recognized borders, which include Somaliland.

The source concluded that Netanyahu’s policies disregard international law and diplomatic norms, further straining Israel’s standing in the Middle East.

A recently published Global Workforce Study has projected that the United Arab Emirates and Saudi Arabia will require more than 1.5 million new workers by 2030, despite rapid advancements in artificial intelligence. The study found that while AI is transforming business processes, the demand for human labor remains strong, driven by robust economic growth, large-scale development projects, and the expansion of public and private services.

In Saudi Arabia, labor demand is primarily fueled by the Vision 2030 economic reform program, which includes major investments in construction, infrastructure, tourism, manufacturing, logistics, and new economic zones. The report estimates that without productivity gains from AI, Saudi Arabia may need around 650,000 additional workers. The UAE’s labor force is expected to grow by 12.1% by 2030, one of the fastest rates among surveyed countries, compared to 11.6% in Saudi Arabia.

The study highlights that opportunities for foreign workers will continue, especially for those with technical, digital, and service-sector skills. AI will automate repetitive tasks but not replace human expertise in supervision, customer interaction, and problem-solving.

Iran has conducted another round of missile drills across multiple cities, including Tehran, Isfahan, and Mashhad, marking its second such exercise in a month. State media released footage of the launches, though the exact locations remain unverified. Conflicting reports emerged as Iranian state outlets later denied any missile testing, claiming the visuals showed high-altitude aircraft instead.

According to NBC News, Israeli Prime Minister Benjamin Netanyahu is preparing to brief U.S. President Donald Trump on what Israel views as an escalating threat from Iran’s ballistic missile program. Western powers consider Iran’s missile capabilities a major security risk for the Middle East, fearing they could eventually serve as delivery systems for nuclear weapons—an allegation Tehran continues to deny.

Israeli officials reportedly believe Iran has resumed rebuilding nuclear enrichment facilities damaged in a U.S. airstrike earlier this year. As a result, Tel Aviv is exploring military options and coordinating with Washington, fueling renewed concerns of a potential confrontation between the two long-time adversaries.

Saudi Arabia and Qatar have formally signed an agreement to construct a high-speed electric passenger rail line connecting Riyadh and Doha, marking the first major infrastructure collaboration between the two Gulf nations once seen as fierce rivals. The project, announced on December 8 through Saudi state media, will link Riyadh’s King Salman International Airport with Doha’s Hamad International Airport, passing through Al-Hofuf and Dammam.

The train is expected to exceed speeds of 300 km/h, cutting travel time between the capitals to roughly two hours compared to the current 90-minute flight. The six-year project aims to transport 10 million passengers annually and create around 30,000 jobs across both countries. The agreement was signed during Saudi Crown Prince Mohammed bin Salman’s meeting with Qatari Emir Sheikh Tamim bin Hamad Al Thani in Riyadh.

Analysts view the deal as a symbol of improving Saudi-Qatari relations following years of diplomatic tension. It also aligns with broader Gulf initiatives to enhance regional connectivity and economic diversification under Saudi Vision 2030.

Recently leaked White House and U.S. CENTCOM documents have exposed a covert regional security framework linking Israel with six Arab countries — Qatar, Bahrain, Egypt, Jordan, Saudi Arabia, and the UAE. Despite publicly condemning the Gaza war, these nations have quietly strengthened military coordination with Israel over the past three years, focusing on intelligence sharing, missile defense, and counter-tunnel operations in Gaza. The Washington Post reports that these meetings, held in locations such as Qatar’s Al Udeid Air Base and the U.S. Fort Campbell base, were part of a broader U.S.-backed initiative to counter Iran’s influence and resistance groups. Kuwait and Oman were informed as potential future partners. Saudi Arabia reportedly played a key role in sharing sensitive military intelligence. The framework remains confidential and officially denies forming any “new alliance.”

Eight Arab nations in the Middle East, including Egypt, Iraq, Jordan, Syria, Lebanon, Bahrain, Qatar, and Kuwait, are grappling with an intense heatwave causing temperatures to soar up to 51°C. The extreme heat and high humidity have disrupted daily life and increased wildfire risks in forests and farmlands. Meteorologists link this to climate change and abnormal atmospheric pressure. Authorities urge people to stay hydrated, avoid direct sunlight, and enhance fire safety measures to mitigate health and environmental hazards.