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Red Sea crisis

red sea shipping crisis gcc

GCC companies safeguard stocks against Red Sea crisis

Businesses in the GCC are adding up to three months to their supply chains as disruption in the Red Sea persists. Despite the increased costs, a survey of executives from the region revealed companies are maintaining “substantial extra inventory” in the face of the current geopolitical uncertainties. The fourth annual Trade in Transition study by […]

Gulf companies are increasingly considering trucking as a freight option because of disruption to Red Sea shipping routes

Gulf turns to trucking to bypass Red Sea unrest

The Gulf trucking industry is preparing for a surge in business as companies seek alternatives to shipping goods while Red Sea risks persist. Trukker, a UAE-based app that is touted as the Middle East’s Uber for land freight, told AGBI that enquiries from clients interested in using its truck booking and other freight forwarding services […]

The global economy has shown 'real resilience' said OECD secretary-general Mathias Cormann

OECD predicts modest growth but conflict risk remains

Global growth is holding up and inflation is falling, but conflict in the Middle East represents a significant near-term risk, the Organisation for Economic Cooperation and Development (OECD) has said. In its interim outlook published on Monday, the Paris-based organisation projected that GDP expansion worldwide would remain moderate at around 3 percent in 2024-2025. Energy […]

UAE president Sheikh Mohamed bin Zayed Al Nahyan meets with Jordan's King Hussein in Amman

AD Ports deal to transform Jordan’s Aqaba

Abu Dhabi is to play a key role in transforming operations at Aqaba Port, Jordan’s primary trade hub.  A joint venture company comprising a subsidiary of Abu Dhabi Ports Group and the Aqaba Development Corporation (ADC) aims to “revolutionise” the port by digitalising operations within a year. The UAE wants to build on bilateral trade […]

An estimated 90% of vessels that would have used the Suez Canal are now re-routing to avoid the chance of attacks in the Red Sea

Red Sea attacks dent Mena business activity

The attacks on shipping in the Red Sea are depressing economies across the Middle East and North Africa, as supply chain disruption takes its toll on business activity. The latest economic monthly bulletins for the UAE, Saudi Arabia and Egypt all show a drop in operating activity for January. Houthi rebels in Yemen have been […]

An Emirates SkyCargo plane being loaded. The airline reported 11% growth in H1 2023 – before the Red Sea disruption

Air cargo demand rises after Red Sea shipping disruption

Middle East airlines posted an 18.3 percent annual increase in air cargo demand in December, in line with strong global growth attributed to Red Sea disruption.  Global demand for air cargo was up 10.8 percent compared with December 2022 – the strongest performance in two years, according to the International Air Transport Association (IATA).  The […]

A Houthi fighter stands on the Galaxy Leader cargo ship. Attacks on shipping have raised insurance premiums for Red Sea routes

Cost of Red Sea shipping insurance rises 2,700%

The cost of insurance to protect ships against losses incurred from conflict has jumped more than twenty-fold since October, before Houthi rebels began firing on vessels passing through the Red Sea. In late November, the rebels in Yemen began attacking commercial ships in what they claim is a show of support for Palestinians in the […]

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman Al-Saud. Saudi Aramco has been instructed to maintain output at 12m bpd

Business as usual at next Opec+ meeting say experts

Opec+ is unlikely to make any drastic policy changes when it holds its ministerial panel on Thursday, according to industry experts. It is thought the organisation, which consists of the Saudi-led Opec bloc and the Russian-led non-Opec group with 10 participants, will probably focus on verifying members’ compliance with agreed output levels and their commitment […]

Red Sea connsumer prices ship under attack

Red Sea crisis ‘will push up Middle East consumer prices’

Higher prices will be seen in Middle East shops if the crisis in the Red Sea continues for another two months, the research firm BMI has warned. In late November, Houthi rebels in Yemen began attacking commercial vessels travelling through the Red Sea in what they claim is a show of support for Palestinians in […]

A ship in the Gulf of Suez before it enters the Suez Canal. The Canal accounts for a large proportion of Egypt's foreign currency revenue

Suez slump compounds Egypt’s foreign currency crisis

Disruptions to shipping in the Suez Canal as a result of the conflict in the Red Sea are exacerbating Egypt’s foreign currency shortages and increasing the need for a new financing package from the International Monetary Fund. Royalties from traffic through the Suez Canal contribute nearly 8 percent of the Egyptian government’s revenue and generate […]

Around 76 million tonnes of grains, oilseeds and oilseed products are shipped annually from the EU, the Russian Federation and Ukraine to Asia and Eastern Africa

Wheat shipments through Suez Canal down 40%

Shipments of wheat through the Suez Canal have fallen by 40 percent year-on-year as a result of the continuing crisis in the Red Sea, the World Trade Organisation’s Wheat Dashboard shows. Major shippers are avoiding the waterway, through which 15 percent of maritime commerce passes, causing supply chain disruptions and threatening a new wave of […]

The WEF meeting is part of what Saudi finance minister Mohammed Al-Jadaan has said is 'a strong Saudi' that can help the region

Saudi Arabia to hold WEF meeting in April

Saudi Arabia plans to host a World Economic Forum meeting in April, the first WEF gathering outside the Swiss ski resort of Davos since the Covid-19 pandemic. Saudi Arabia’s economy minister Faisal Alibrahim told Reuters on 18 January, during the current meeting in Davos, that the meeting will be held on 28-29 April. It aims […]

Architecture, Building, ShopAlyshaya, which operates brands including Victoria's Secret in Dubai, will close 60 stores in Egypt this year

Kuwait’s Alshaya scales back operations in Egypt

Kuwait’s Alshaya Group, one of the Gulf’s largest franchise owners, is scaling back its operations in Egypt due to “the difficulties faced by overseas businesses” in the North African country. “As a result of the economic situation over the last three years and the difficulties faced by overseas businesses trading in Egypt, we have taken […]

Saudi Aramco CEO Amin Nasser predicted growth in oil demand of around 1.5m bpd in 2024, which is less optimistic than Opec's forecast

Saudi Aramco CEO expects oil markets to tighten 

Saudi Aramco expects tighter oil markets due to growing crude demand and shrinking stockpiles, its CEO Amin Nasser has said. Nasser believes that the disruptions in the Red Sea will not affect global markets in the short term. However, an extension of the crisis would result in a shortage of tankers due to longer travel […]

Sightseers wait for boats to take them back to land after they toured the Galaxy Leader commercial vessel, seized by Yemen's Houthis last month

Red Sea crisis a threat to Saudi giga-project investment

The Red Sea conflict between western powers and Houthi rebels in Yemen could put Saudi Arabia’s mammoth economic development projects at risk, the sovereign wealth fund advisory Global SWF said this week. The US and UK began airstrikes against targets in Houthi-controlled north Yemen on 12 January to stop them firing missiles at Red Sea […]

LNG carriers in Qatar. QatarEnergy, the world’s second-largest LNG shipper, temporarily suspended sending tankers via the Red Sea

Low LNG demand cushions Europe from Red Sea issues

Low demand and healthy natural gas inventory levels have offset concerns over the Red Sea crisis, leaving markets cool-headed, energy experts said. Europe’s benchmark natural gas price, Dutch TTF, traded at €29.99 ($32.65) per megawatt-hour on Tuesday as industrial demand weakens and stockpiles grow, despite the cold spell.  “Demand has so far disappointed, as households […]

Saudi Arabia's construction giga-projects, part of its Vision 2030 strategy, are vulnerable to global supply chain problems

Saudi developer Roshn prioritises local sourcing

Saudi developer Roshn says it is increasing its local sourcing of building materials to manage global supply chain problems.  “We’re working on a target at the moment of trying to locally source around 60 percent of our construction activities within the kingdom,” CEO David Grover told Al Arabiya TV on January 14.  “For us it’s […]