Israel’s Eilat Port Faces Layoffs Amid Red Sea Shipping Crisis, Union Says 

New imported cars are seen in a parking lot next to the Eilat port, Israel, June 12, 2018. (Reuters)
New imported cars are seen in a parking lot next to the Eilat port, Israel, June 12, 2018. (Reuters)
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Israel’s Eilat Port Faces Layoffs Amid Red Sea Shipping Crisis, Union Says 

New imported cars are seen in a parking lot next to the Eilat port, Israel, June 12, 2018. (Reuters)
New imported cars are seen in a parking lot next to the Eilat port, Israel, June 12, 2018. (Reuters)

Half the workers at Israel's Eilat Port are at risk of losing their jobs after the seaport took a major financial hit due to the crisis in Red Sea shipping lanes, Israel's main labor federation said on Wednesday.

Eilat sits on a northern tip of the Red Sea and was one of the first ports to be affected as shipping firms rerouted vessels to avoid attacks by Houthi militants in Yemen.

The Histadrut labor federation, the umbrella organization for hundreds of thousands of public sector workers, said port management has announced it intends to fire half of the 120 employees. The dock workers will hold a protest on Wednesday, it said.

Officials at the port did not immediately respond for comment.

Eilat, which primarily handles car imports and potash exports coming from the Dead Sea, pales in size compared to Israel's Mediterranean ports in Haifa and Ashdod, which handle nearly all the country's trade.

But Eilat, which sits adjacent to Jordan's only coastal access point at Aqaba, offers Israel a gateway to the East without the need to navigate the Suez Canal.

In December, Eilat Port's chief executive told Reuters that they saw an 85% drop in activity since Iran-backed Houthis began their attacks on ships in the Red Sea. He said at the time they may have to furlough workers should the crisis continue.

"It would have been right for the company at this time to have embraced the workers and their families, and not chose the easy way of attempting mass layoffs," said Eyal Yadin, chairman of the transportation workers union on Wednesday. "We won't be a part of this."

The Houthis have also fired drones and missiles at Israel in a campaign they say aims to support Palestinians in the Gaza war, where Hamas is also backed by Iran.

The alternative route to the Red Sea takes shipping around the southern tip of Africa, extending voyages to the Mediterranean by two to three weeks which will add extra costs down the line, Israeli officials say.



Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.