Attacks on Red Sea Ships Disrupt Jordan’s Commercial Sector

A Houthi military helicopter flies over a cargo ship in the Red Sea. (Reuters)
A Houthi military helicopter flies over a cargo ship in the Red Sea. (Reuters)
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Attacks on Red Sea Ships Disrupt Jordan’s Commercial Sector

A Houthi military helicopter flies over a cargo ship in the Red Sea. (Reuters)
A Houthi military helicopter flies over a cargo ship in the Red Sea. (Reuters)

Jordan relies on imports to cover the majority of its food needs, most of which cross the country’s only seaport of Bab al-Mandab strait, as the Houthi group continues to attack commercial ships in the Red Sea.
Jordanian imports cover between 85 and 90 percent of the country’s food needs. 65 percent of the volume of these imports cross Bab al-Mandab Strait towards the port of Aqaba. Fears have been mounting over the repercussions of the security crisis in the Red Sea and the continuous attacks by the Houthis against commercial ships.
According to a report by the Arab World Press (AWP), the Houthi attacks disrupted global trade in the Red Sea, and major shipping companies diverted their ships, choosing longer route around Africa instead of passing through the Suez Canal.
Yemen’s Houthi groups are targeting ships in the Red Sea, in support of the Hamas movement, which is fighting Israel in the Gaza Strip in a war that broke out on Oct. 7.
These attacks led to higher shipping costs and longer delivery times, as stated by Mahmoud Al-Daoud, owner of a small company that imports canned food in Jordan.
Al-Daoud told AWP that his company's financial capabilities do not give him much room for adventure or to bear losses if the tanker carrying his goods was “sabotaged or seized,” or even to incur additional shipping and delivery costs.
“The profit margin after transportation and storage costs in normal situations does not exceed 20 percent, from which the company pays the salaries of employees and workers and other operational costs. Therefore, any additional expenses will cause losses in profits and may reach capital,” he remarked.
In December, Maersk, one of the largest shipping companies in the world, suspended shipping through the Red Sea and Suez Canal “until further notice”, after one of its ships was attacked by the Houthis off Yemen. The attack was confronted by American forces stationed in the area. US Central Command said that its helicopters sank three Houthi boats.
Maersk had resumed shipping through the Red Sea on Dec. 24 after the United States announced the start of an operation to protect ships near Yemen with the participation of more than 20 countries.
However, “the challenge is great” for the commercial sector in Jordan, said the head of Jordan’s Chamber of Commerce, Khalil Haj Tawfiq, especially with regard to the flow of goods into the country and shortages in local markets.
As the Houthi attacks on ships in the Red Sea continued, the Jordanian Ministry of Transport quickly concluded an agreement with the Arab Bridge Maritime Company to operate the Arab line for land and sea transport between the port of Aqaba and the Egyptian ports overlooking the Mediterranean Sea. The Arab Bridge Maritime Company was established in 1985 after an agreement between the governments of Jordan, Egypt and Iraq, as its website explains.
In a meeting held last week in the Amman Chamber of Industry, Jordanian Minister of Transport Wissam Al-Tahtamouni confirmed that the cessation of shipping lines through the Red Sea will lead to an increase in the cost of insurance in addition to longer delivery times, for imports and exports.
He added that the currently proposed alternative is the continued flow of goods through the land and sea transport lines of the Arab Bridge company.



UK-Saudi-UAE Alliance to Develop Ground-breaking Petrochemical Complex in Egypt

The project, with an estimated investment of $7 billion, is set to create 20,000 jobs during the construction phase and 3,000 permanent positions upon operation. Photo: Egypt’s Ministry of Petroleum
The project, with an estimated investment of $7 billion, is set to create 20,000 jobs during the construction phase and 3,000 permanent positions upon operation. Photo: Egypt’s Ministry of Petroleum
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UK-Saudi-UAE Alliance to Develop Ground-breaking Petrochemical Complex in Egypt

The project, with an estimated investment of $7 billion, is set to create 20,000 jobs during the construction phase and 3,000 permanent positions upon operation. Photo: Egypt’s Ministry of Petroleum
The project, with an estimated investment of $7 billion, is set to create 20,000 jobs during the construction phase and 3,000 permanent positions upon operation. Photo: Egypt’s Ministry of Petroleum

The UK’s Shard Capital Partners LLP, in collaboration with UAE-based Royal Strategic Partners and Saudi Arabia’s Al-Qahtani Group, has announced the signing of a Framework Agreement with Egypt’s Ministry of Petroleum and Ministry of Investment to develop a ground-breaking petrochemical complex in the industrial zone of New Alamein City.

In addition, Shard Capital said it is having initial discussions with Orascom Construction for the investment in the construction and operation of the complex outside battery limits on a Build Own and Operate basis.

The project, with an estimated investment of $7 billion, is set to create 20,000 jobs during the construction phase and 3,000 permanent positions upon operation, supporting Egypt’s economic development through job creation, Shard Capital said in a statement.

The project will establish an integrated complex with a production capacity of approximately 3.1 million tons annually of eight specialized petrochemical products. Using crude oil as its primary feedstock, the facility will include a refinery, and a mixed steam cracker unit designed to achieve one of the highest global conversion rates.

This state-of-the-art complex represents a transformative step for the industry by employing cutting-edge global technologies to maximize production efficiency and convert crude oil into high-value end products. Additionally, it will significantly enhance Egypt’s export capabilities in the petrochemical sector, playing a pivotal role in driving economic growth and strengthening global market position.

“Signing this agreement marks a historic milestone for Shard Capital LLP and reflects our deep commitment to advancing Egypt’s petrochemical sector. We are proud to be part of this critical project that will revolutionize the industry by leveraging cutting-edge American and European technologies to ensure maximum efficiency in converting raw materials into specialized petrochemicals while delivering exceptional returns for both the complex and Egypt,” said Capital Markets Advisor at Shard Capital Partners LLP William Blain.

He added: “We are committed to implementing the highest environmental sustainability standards and minimizing carbon emissions. Our ongoing collaboration with US partners on blue hydrogen production feasibility studies represents a step toward a more sustainable future.”

CEO of Shard Capital Partners LLP Toby Raincock said: “This complex will enhance Egypt’s industrial capabilities, open new export markets, create extensive job opportunities, and drive economic development across the region.