This paper assesses the long-term consequences of the economic and financial rise of the United Arab Emirates and Qatar for the international relations of the Persian Gulf region and the Middle East at large. Despite the appearance in recent years of a number of studies dealing with various aspects of Persian Gulf politics, there have not been any systematic, in-depth studies of the regional and larger international consequences of the emergence of Qatar and the UAE as financial and economic powerhouses for both their neighboring states in the Persian Gulf and also for other actors in the Middle East. This paper looks precisely at such a linkage. What, if any, the research asks, are the regional and international consequences of the rise of Qatar and the UAE for the evolving international relations of the Persian Gulf? Are we witnessing the rise of economically self-confident small states that are eager to proactively engage in big power politics? Does this foretell a steady overshadowing of—or at least spirited competition to—the regional diplomatic clout of such traditional powerhouses as Iran and Saudi Arabia? More broadly, are Qatar and the UAE beneficiaries of a qualitatively new form of power rooted in their penetration of and strength in global financial markets? In sum, the paper asks, are these changes ephemeral or do they amount to a more profound, longer-term transformation of the regional balance of power in the Persian Gulf?