Saudi Arabia at a Crossroads

Saudi Arabia at a Crossroads: Returning to Its Islamic Identity to Become the True Power of the Muslim World

By:

MYR Agung Sidayu

Member of Boards of Trustees

Yayasan Pesantren Indonesia

Introduction.

In the increasingly complex geopolitical dynamics of the Middle East in 2026, the Kingdom of Saudi Arabia faces a critical moment. The open confrontation with the United Arab Emirates (#UAE) — often regarded as a close partner of Israel through the Abraham Accords — actually presents a golden opportunity for Crown Prince Mohammed bin Salman (#MBS) to make a strategic course correction. Rather than merely imitating Dubai’s secular-cosmopolitan and purely pragmatic model, Saudi Arabia should return to and fully harness the power of its Islamic identity as the foundation for its regional and global influence.

Saudi Arabia is not an ordinary country. As the Custodian of the Two Holy Mosques (#KhadimulHaramain) — Mecca and Medina — the Kingdom holds a unique spiritual trust in the eyes of more than 1.8 billion Muslims worldwide. Its true strength lies not only in its oil reserves or ambitious mega-projects under Vision 2030, but in its ability to inspire, unite, and lead the Muslim ummah both domestically and internationally. This is the potential that must be developed more seriously and profoundly.

From Confrontation with Identity to the Strategic Utilization of Identity.

Initially, Vision 2030 under MBS demonstrated a bold ambition to modernize Saudi Arabia: opening up entertainment, increasing women’s participation, reducing the role of the religious police, and transforming Riyadh and #NEOM into global hubs similar to Dubai. This approach was often seen as a form of “confrontation” with the Kingdom’s deep religious identity, rooted in the Salafi-Wahhabi tradition and the historic alliance between the Al Saud family and the Islamic reform movement.

However, fluctuating oil prices, post-Gaza war dynamics, and regional rivalries have pushed Riyadh toward a hedging strategy — a balancing act. Tensions with the UAE have become increasingly open, particularly in #Yemen, #Sudan, #Somalia, and the Red Sea. Some circles in Saudi Arabia have even described the UAE as a “Zionist Trojan horse” in the Arab world due to its closeness to Israel. This competition provides Saudi Arabia with the space to differentiate itself: not as a small, agile, and highly pragmatic state, but as a sovereign leader with the civilizational weight of Islam.

It is time for MBS to shift the narrative from “confrontation with identity” to the intelligent utilization of Islamic identity. Not by returning to a rigid past, but by reviving Saudi Arabia’s role as the center of moderate, tolerant yet principled Islamic inspiration, while taking the lead on key ummah issues such as Palestine.

Why the Muslim World Is Saudi Arabia’s True Source of Strength

Investing in stronger relations with the Muslim world offers irreplaceable strategic advantages:

1. Domestic Legitimacy and Social Stability . The historic alliance between the royal family and the ulama remains the main pillar of the Kingdom. By emphasizing moderate Islamic values (wasatiyyah), moderation, and tolerance in line with religious teachings, MBS can reduce potential conservative resistance while gaining broad support from a deeply religious society.

2. Extraordinary Global Soft Power. As Custodian of the Two Holy Mosques, Saudi Arabia has direct emotional and spiritual access to the hearts of Muslims worldwide. Every year, millions of pilgrims come for Hajj and Umrah — including hundreds of thousands from Indonesia, the world’s largest Muslim-majority nation. Improving Hajj infrastructure, expanding scholarship programs, promoting moderate da’wah through the Muslim World League (Rabithah Alam Islami), and investing in quality Islamic education can significantly strengthen these bonds. Indonesia is a natural and highly strategic partner. Historically, many Indonesian scholars and pesantren have maintained close ties with Saudi Arabia, among them extraordinary figures and lineages such as Sidayu, Albantani, Alfalembani, Algarutti, and Alfadani, which have even produced generations who became Saudi citizens long before the modern Kingdom was founded.

3. Regional Leadership Amid Fragmentation. The confrontation with the UAE model opens the door for Saudi Arabia to embrace other Muslim countries such as Turkey, Qatar, Pakistan, and Malaysia. Recent steps — including defense agreements with Pakistan and improved relations with Turkey — demonstrate the potential to build alliances based on Islamic solidarity. This could evolve into a pragmatic “Islamic NATO” that protects the interests of the ummah without full dependence on external powers.

4. Blessed Economic Sustainability. Religious tourism (Hajj and Umrah), the global halal industry, Islamic finance, and technology-based Islamic education can become new pillars of economic diversification. Vision 2030 itself already includes the element of being “the heart of the Arab and Islamic world.” Integrating Islamic identity into this vision will make its projects more authentic and socially accepted, rather than appearing as imported foreign culture.

A Lesson for Saudi Arabia: Be a Stronger Version of Yourself

The UAE model has indeed been successful on a per-capita basis — efficient, investor-friendly, and pragmatic. However, Saudi Arabia possesses scale, history, and religious legitimacy that the UAE lacks. Blindly imitating Dubai risks causing Saudi Arabia to lose its comparative advantage. Instead, developing deeper, trust-based, and mutually beneficial relationships with the entire Muslim world will position Saudi Arabia as a true superpower: not only materially wealthy, but also influential in civilizational terms.

For #Indonesia, this development is highly positive. As the country with the world’s largest Muslim population, we warmly welcome a Saudi Arabia that strengthens its role as a just leader, supports the Palestinian cause, and builds cooperation in education, the halal economy, and moderate da’wah. Yayasan Pesantren Indonesia stands ready to serve as a bridge to deepen this relationship — through knowledge exchange, programs sending santri to the Saudi Arabia , and community empowerment initiatives.

Conclusion: A Golden Opportunity Amid Challenges.

The confrontation with the UAE is not the end, but a call to return to its roots. Mohammed bin Salman has a historic opportunity to change course: from merely pursuing material modernity to exercising leadership that combines progress with the greatness of Islamic identity. By maximizing its status as Custodian of the Two Holy Mosques, Saudi Arabia can become a respected regional and global power — not by imitating others, but by becoming the best version of itself.

The Muslim world, including Indonesia, awaits a more confident Saudi Arabia that leads with the Islamic values of rahmatan lil ‘alamin (a mercy to all creation). The time has come not to compete in narrow pragmatism, but to inspire civilization.

Wallahu a’lam bish-shawab.