King Faisal felt the handling of the Buraimi dispute in which Saudi troops were defeated and forcibly removed was a great insult to the Kingdom and a blow to be avenged.

King Faisal told the UAE delegation which visited him in Taif in July 1972 that Saudi Arabia had been humiliated in Buraimi and that it would have to retrieve its rights, vowing that it would not abandon property inherited from fathers and grandfathers.

Sheikh Zayed was more eager for a settlement but Saudi Arabia's demand was unrealistic as it claimed the annexation of extensive lands in the Emirate of Abu Dhabi some of which contained a number of oil fields.

[3] On 21 August 1974, an agreement in the form of Treaty of Jeddah (1974) was settled between Sheikh Zayed and King Faisal on the demarcation of the frontiers between the Emirate of Abu Dhabi and Saudi Arabia.

Saudi Arabia immediately declared recognition of the United Arab Emirates, sent its ambassador, and promoted its liaison office in Dubai into a consulate.

[9] Despite their alliance, there have been differences between the Saudi and Emirati approach to Yemen, such as the UAE's support for the separatists of the Southern Transitional Council and opposition to Al-Islah.

[14][15] In May 2017, an unnamed source alleged that Saudi Arabia and UAE planned a joint Saudi-UAE invasion of Qatar which was ultimately abandoned due to opposition by the United States.

[19] In July 2021 OPEC meetings, Saudi Arabia and the United Arab Emirates had disputed over oil production limits as UAE wanted monetize its natural resources as quickly as possible to help drive the transition away from fossil fuels.

[24] Saudi Arabia and the UAE are both heavily investing in AI and semiconductor sectors, with significant contributions from regional banks and state-backed investors.