To add details

From Federico Macchioni, Nazih Assiran, and Maha Al-Dahhan

DUBAI, Feb 6 (Reuters) - Federico Macchioni, Nazih Assiran and Maha Al-Dahan

Two sources familiar with the matter told Reuters that some Emirati companies have withdrawn from a major defense exhibition being held in Saudi Arabia, in the latest sign of growing disagreements between the two countries and the impact this has on business interests.

The World Defence Exhibition is scheduled to take place in the Saudi capital, Riyadh, from February 8 to 12. It remains unclear whether all participating Emirati companies have withdrawn.

Neither the UAE Ministry of Foreign Affairs nor the Saudi government's media office has yet commented on the matter.

* Impact of repercussions

After Saudi Arabia and the UAE were two key pillars of security in the region, their interests diverged in various fields, from oil shares to geopolitical issues.

In December, the two countries’ differences became starkly apparent when a southern Yemeni separatist group backed by the UAE approached the Saudi border, leading to a rapid escalation of the situation with a Saudi-led coalition airstrike on an arms shipment linked to the UAE in the port of Mukalla.

Since then, the UAE has withdrawn all its forces from Yemen, but tensions have escalated after Saudi Arabia accused the UAE of helping a prominent figure in the Yemeni separatist movement escape through Somalia.

The UAE's withdrawal from a major annual defense event suggests that the dispute between the two oil-producing nations may extend to their numerous trade and investment ties.

Two Gulf trade sources said that although deal-making between the two countries has not been significantly affected at the moment, tensions have begun to seep into the business community, which has been quietly preparing for potential disruptions even as day-to-day business activities continue.