Saudi Arabia and the UAE are reportedly in active discussions to sell oil and gas in Chinese yuan, though these moves are currently framed as a strategic response to regional instability rather than a total abandonment of the US dollar.Key .
In April 2026, Emirati officials reportedly informed the US that a shortage of dollar liquidity—caused by conflict-driven disruptions in the Strait of Hormuz—could force them to settle oil transactions in alternative currencies like the yuan.
While long-standing, Riyadh’s consideration of yuan-denominated sales has accelerated. Reports from late April 2026 suggest the Kingdom is officially open to partial oil sales in yuan to strengthen its partnership with China, the world’s largest oil importer.
Rather than a simple swap, both nations appear to be moving toward a multi-currency system. Saudi Arabia has indicated it will not renew exclusive 50-year “petrodollar” mandates, opting instead to accept a basket of currencies including the yuan, euro, and yen.The UAE formally exited OPEC on 1 May 2026, a move analysts say allows them greater freedom to set production and currency policies independently of the Saudi-led cartel.
Both countries are already testing the mBridge platform, a cross-border digital currency system that facilitates direct settlements in yuan, bypassing traditional dollar-clearing routes.While some reports describe this as a “formalized move,” many analysts view it as a gradual diversification designed to hedge against US financial sanctions and the volatility of the ongoing regional conflict.
Note by Alessandro Bazzoni