Saudi Arabia's thrust for a Gulf Union, driven by fear of Arab Spring contagion and spreading Iranian influence, has stumbled on misgivings among smaller neighbors about a loss of sovereignty and increasing domination by Riyadh.
Gulf diplomats, officials and analysts expressed surprise that Saudi Arabia had opened itself up to such a public setback.
The union proposal, initially designed to contain Shi'ite Muslim dissent in Bahrain and counter the growing sway of Shi'ite Iran, surprised Gulf Arab leaders when King Abdullah first unveiled it at a summit in December. Rather than fade away, it acquired momentum when a Saudi minister outlined plans for shared foreign and defense policy last month.
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