Oman said it has broken up a ring of spies placed by its neighbor, the United Arab Emirates, in a move that could strain relations further between the two Persian Gulf states.

An unnamed security official in the sultanate told the Oman News Agency on Sunday that the authorities had arrested spies “belonging to the state security forces of the UAE targeting the regime in Oman and the mechanism of governmental and military work”.
Amid growing discord in North Africa, analysts were surprised at the timing of such a controversial issue breaking into the open.
Public discussion of intelligence in the region is rare enough, let alone accusations of spying operations between two “fraternal” states, both of which are members of the Persian Gulf Cooperation Council.
Last November internet reports emerged that almost 20 Omani officials had been arrested in the sultanate for allegedly spying on behalf of Abu Dhabi, the capital of the UAE, but there had been no official confirmation until Sunday.
Analysts said the UAE could have been seeking intelligence on Iran’s influence in the Arabian peninsula as Arab concerns about Iran’s nuclear ambitions rise.
The WikiLeaks cables underlined the divide between Abu Dhabi’s hardline view towards Tehran and a more conciliatory approach favored by Oman, which has been negotiating with Iran over importing natural gas.
“The UAE is likely interested in Omani-Iranian relations and where they stand today,” said Theodore Karasik, head of research for the Institute for Near East and Persian Gulf Military Analysis, a Dubai-based think tank.
Before it came into the open the spat had already apparently triggered a deterioration in relations. Some pointed to circumstantial evidence of rising tensions, such as delays on the land border between the UAE and Oman and disruption to a yacht race between Dubai and Muscat, the Omani capital.
The UAE was formed in 1971 when the UK withdrew from the region. The sultanate had declared independence two decades earlier.
Demarcation of the land border between Oman and the Emirati sheikhdoms was hammered out by UK officials in the 1960s, leaving several Omani enclaves within UAE territory.
The UAE and Oman, only finalized their land border in 2008, after reaching a partial settlement in 1999.
(Source: FT)