Recently, plans have been afoot to remove the role of USD and EUR as the major oil, gold, and international trade with the UAE and the Middle East. Currently, UAE and Arab League are planning due to the Israel–Hamas war that there are chances of huge economic, financial, Forex, and corridor losses due to the Israel-Hamas war. In this way, Saudi and UAE have been trying to keep USD–backed businesses, corridors, and financial services away from de-dollarization efforts for the last 2 years. So in such a situation, it is believed that not for now but in the long term, USD and EUR Dominance are going to have huge losses.
Why the United States & European Union will be mostly Affected by the Middle East’s de-dollarization efforts?
Saudi Arabia and UAE’s decision could significantly impact the dominance of the US dollar in the global oil market. The United Arab Emirates (UAE) has shifted from using the US dollar to local currencies in its oil trades, and it seems this statement will affect the PetroDollar or USD-backed Oil Facilities across the world. At the same time, the situation with Saudi Arabia shows from the summit of Riyal/Yuan with China that UAE or Saudi alone will take the decision, but after Saudi Arabia and UAE, all the Arab League countries can also weigh in on USD and EUR. All the highest tax gains of the US and Europe also depend on Oil and thus the wealth of the Middle East can create huge economic crises, political issues, business, and inflation in the US, Europe, and the Indo-Pacific. Currently, for the last 4 years, Saudi Arabia and China have kept the local currency, Yuan and EUR together, against the Foreign Reserve Dollar, and thus China-Arab relations will drag down from Global Currency the USD till 2028.