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Maersk Rules Out Suez Canal Return Until 'Well Into 2025'

Maersk containers are transported by train in Ronda, Spain October 27, 2024. REUTERS/Jon Nazca
Maersk containers are transported by train in Ronda, Spain October 27, 2024. REUTERS/Jon Nazca
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Maersk Rules Out Suez Canal Return Until 'Well Into 2025'

Maersk containers are transported by train in Ronda, Spain October 27, 2024. REUTERS/Jon Nazca
Maersk containers are transported by train in Ronda, Spain October 27, 2024. REUTERS/Jon Nazca

Danish shipping group A.P. Moller-Maersk said on Thursday it expects strong demand for shipping goods around the globe to continue in the coming months, though does not expect to resume sailing through the Suez Canal until "well into 2025.”
Attacks on vessels in the Red Sea by Iran-aligned Houthi militias have disrupted a shipping route vital to east-west trade, with prolonged re-routing of shipments pushing freight rates higher and causing congestion in Asian and European ports.
"There are no signs of de-escalation and it is not safe for our vessels or personnel to go there ... Our expectation at this point is that it will last well into 2025," Chief Executive Vincent Clerc told journalists, according to Reuters.
Maersk, viewed as a barometer of world trade, said in January it was diverting all container vessels from Red Sea routes around Africa's Cape of Good Hope for the foreseeable future.
The company said on Thursday it had seen strong demand in the third quarter especially driven by exports out of China and Southeast Asia.
Clerc said he saw no signs of a slowdown in volumes from Europe or North America in the coming months.
Maersk also confirmed robust preliminary third-quarter earnings released on Oct. 21 driven by high freight rates, when it also raised its full-year forecasts citing solid demand and the continuing disruption to shipping in the Red Sea.
Maersk's shares rose 2.4% by 0957 GMT.

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US Tariffs Have Limited Impact on Saudi Real Estate Market

A real estate project in Saudi Arabia. (SPA)
A real estate project in Saudi Arabia. (SPA)
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US Tariffs Have Limited Impact on Saudi Real Estate Market

A real estate project in Saudi Arabia. (SPA)
A real estate project in Saudi Arabia. (SPA)

More than two weeks after US President Donald Trump imposed a 10% tariff on imports from Gulf Cooperation Council (GCC) countries—part of a broader global tariff initiative—questions have emerged regarding its potential impact on Saudi Arabia’s real estate sector.

As a cornerstone of the Kingdom’s economic diversification under Vision 2030, the real estate market remains a vital contributor to sustainable growth.

Real estate and economic experts predict the new tariffs will have a “moderate” and “limited” effect on Saudi Arabia’s property market. Speaking to Asharq Al-Awsat, they estimated a potential rise of 2–5% in the cost of imported construction materials used in infrastructure and development projects.

The Saudi real estate sector recorded transactions worth approximately SAR 2.5 trillion (around $666 billion) in 2024, buoyed by Vision 2030 initiatives and government incentives—reinforcing investor confidence in the sector as a stable and attractive investment hub, particularly amid global financial volatility.

Mohammed Hamdi Omar, CEO of G.World, told Asharq Al-Awsat that the new tariffs could increase the cost of importing steel, concrete, and aluminum by 3.4% to 7%, contributing to an overall rise in construction costs of up to 5% annually. This is driven by increasing demand across numerous development projects currently underway or planned across the Kingdom.

Omar noted that Saudi Arabia had previously raised tariffs on many construction materials in 2020, with duties on items like steel, aluminum, and machinery increasing from 5–12% to as much as 15%.

He added that higher input costs could add $10–$20 per ton to steel prices, which accounts for around 20% of building material inputs, while concrete prices may rise 5–10% due to energy and logistics cost hikes.

These rising costs, Omar warned, could force some developers to delay or cancel low-margin projects, potentially exacerbating the existing housing shortage in the Kingdom.

Despite global economic fluctuations, Saudi Arabia’s non-oil GDP growth and ongoing reforms continue to strengthen investor sentiment. Government incentives, such as VAT exemptions for first-time homebuyers, also contribute to the sector’s resilience.

Real estate appraiser and expert Eng. Ahmed Al-Faqih added that the Saudi market relies more on Chinese imports for construction materials, which should shield many development projects from the brunt of US tariffs.

He emphasized that, like gold, real estate remains a safe haven for capital, especially as global financial markets face disruption amid tariff wars.

Luxury real estate is expected to bear the brunt of price increases, though it continues to expand in line with Vision 2030 and growing interest from tourists and foreign investors.