Saudi Ports: A Lifeline for Global Trade in an Era of Turbulence

Jeddah Islamic Port (Mawani)
Jeddah Islamic Port (Mawani)
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Saudi Ports: A Lifeline for Global Trade in an Era of Turbulence

Jeddah Islamic Port (Mawani)
Jeddah Islamic Port (Mawani)

Amid rising geopolitical tensions in the Arabian Gulf and disruptions to vital shipping routes through the Strait of Hormuz, Saudi Arabia’s ports have emerged as an alternative artery, not only for the region but for global trade.

Designed with advanced infrastructure and high operational capacity, these ports are increasingly seen as an international logistics hub capable of safeguarding energy flows and supply chains at a time when the global economy faces unprecedented security challenges.

Highlighting their growing logistical importance, the Saudi Ports Authority (Mawani) recently announced the addition of two new maritime shipping services at Jeddah Islamic Port in partnership with shipping giants Maersk and Hapag-Lloyd.

The move strengthens maritime connectivity between Saudi Arabia and global markets. The new routes include Maersk’s AE19 service and Hapag-Lloyd’s SE4 service, each with a capacity of about 17,000 twenty-foot equivalent units (TEUs). The services significantly boost the port’s operational efficiency and competitive position.

Through these routes, Jeddah Islamic Port will be connected to nine major regional and international ports, including Tianjin Xingang, Qingdao, Ningbo and Shanghai in China; Busan in South Korea; Tanjung Pelepas in Malaysia; and Singapore.

The network also extends to strategic hubs in the western and eastern Mediterranean, as well as routes reaching South Africa via the Cape of Good Hope, enhancing the flexibility of intercontinental cargo movement.

Saudi energy giant Saudi Aramco recently revealed a significant shift in its export strategy, confirming that part of its crude oil exports is now being redirected to the Port of Yanbu on the Red Sea coast.

According to Reuters, Aramco informed buyers of its Arab Light crude that shipments would be loaded from Yanbu instead of Gulf terminals. The decision reflects growing confidence in the Red Sea ports’ capacity to handle large-scale oil flows safely and efficiently, away from the volatility of Gulf shipping lanes.

Saudi Arabia’s strategic shift relies on an integrated port network managed by the Saudi Ports Authority, which oversees 290 berths equipped with advanced technology. These ports serve not only as logistics gateways but also as vital arteries ensuring the steady flow of oil and essential goods.

Their importance is amplified by the Kingdom’s geographic location linking Asia, Europe and Africa, offering Saudi Arabia significant flexibility in responding to regional or global disruptions. Beyond operational efficiency, the port system has also become a cornerstone for attracting foreign investment. By positioning itself as a reliable and sustainable hub for global trade, Saudi Arabia aims to guarantee secure maritime traffic and more resilient supply chains amid geopolitical uncertainty.

Jeddah Islamic Port remains the kingdom’s principal commercial gateway and the largest hub port on the Red Sea. Located along one of the world’s most important maritime corridors, it serves as a key link connecting trade between Asia, Europe and Africa.

The port covers about 12.5 square kilometers and includes 62 berths along with two specialized container terminals capable of accommodating vessels carrying up to 19,800 TEUs. It handles more than 130 million tons of cargo annually, accounting for roughly 75 percent of Saudi Arabia’s maritime trade.

Major terminals include Red Sea Gateway Terminal and the South Container Terminal, both undergoing continuous expansion with smart systems and automation to enhance efficiency in cargo handling, storage, customs clearance and ship services. The port maintains direct links with European, Asian and African ports.

King Abdullah Port, located in King Abdullah Economic City north of Jeddah, has emerged as one of the world’s most advanced transshipment hubs. Spanning 20 square kilometers within a broader economic zone of 168 square kilometers, it serves as a key node on the East–West trade route linking Asia, Europe and Africa.

The port has an annual container handling capacity of 25 million TEUs, placing it among the largest container ports globally. Equipped with high-capacity cranes, smart gate systems and automated guided vehicles, the facility is designed to handle the world’s largest cargo ships efficiently.

King Fahd Industrial Port in Yanbu is the largest facility on the Red Sea for loading crude oil and petrochemical products, with a handling capacity of 210 million tons annually.

Yanbu Commercial Port is one of the oldest ports on Saudi Arabia’s western coast and represents the kingdom’s second maritime gateway for pilgrims after Jeddah. Officially opened in 1965 during the reign of King Faisal, it lies between Duba Port to the north and the industrial and Jeddah ports to the south. The port is linked by modern road networks to Madinah and Makkah, strengthening its strategic role within the Red Sea port system.

Duba Port serves as a northwestern gateway handling both passengers and cargo with an annual capacity of about 10 million tons.

Jazan Port, located in southern Saudi Arabia, ranks third in design capacity among ports on the Saudi Red Sea coast. It is also the kingdom’s primary entry point for livestock imports from the Horn of Africa and sits about 266 miles from the Bab el-Mandeb Strait.

Ras Al-Khair Port, opened in 2016, is Saudi Arabia’s newest industrial port and serves Ras Al-Khair Industrial City. Connected to mining areas through a dedicated railway, the port exports industrial and mineral products to global markets. It includes 14 berths and supports more than 100 industrial projects operating in the city.

Al-Khafji Port, located on the eastern coast in Saudi Arabia’s Eastern Province, functions primarily as an oil export facility. Its first crude shipment was exported in 1960. The port can accommodate three tankers simultaneously—two for loading and one for unloading—while six additional vessels can wait offshore and up to 30 smaller vessels can dock at its berths.

These expansions and international partnerships align closely with Saudi Arabia’s national development strategy. The Saudi Ports Authority has invested more than 27 billion riyals (about $7.2 billion) in upgrading the infrastructure of major ports and establishing 20 integrated global logistics zones.

These efforts go beyond cargo handling. Technological and structural modernization has enabled Saudi ports to receive the world’s largest container ships with capacities reaching 24,000 TEUs, reinforcing the kingdom’s ambition to become a global logistics hub connecting three continents.

According to logistics expert Hassan Al-Halil, Saudi ports benefit from a unique geographic advantage because they are located close to major international shipping lanes. This proximity allows them to connect Asia, Europe and Africa over shorter sailing distances, creating strong potential for the Kingdom to become a redistribution center for global trade.

Al-Halil noted that Jeddah Islamic Port has long served as Saudi Arabia’s main commercial gateway, with extensive operational experience in handling container traffic. King Abdullah Port, by contrast, was designed from the outset as a modern, scalable facility relying on advanced operational systems and has become one of the fastest-growing container ports in the region.

He stressed that becoming a global trade hub requires more than geographic location. Efficient customs procedures, rapid clearance processes, the capacity to receive mega-ships, and the integration of logistics and industrial zones with ports are equally essential. Seamless connections between ports, road networks and railway infrastructure also play a vital role.

Saudi Arabia has long invested in infrastructure that reduces reliance on the Strait of Hormuz. A key component is the East–West Pipeline, known as Petroline, which transports oil from the kingdom’s eastern fields to the Red Sea coast. The pipeline has a capacity of about 5 million barrels per day and can be increased to roughly 7 million barrels during emergencies.

Yanbu, Al-Halil said, represents a strategic safety valve for Saudi energy exports. The port is capable of exporting between four and five million barrels per day through the Red Sea, ensuring that significant oil flows continue even if shipping through the Strait of Hormuz is disrupted.

The growing focus on Red Sea ports may also benefit Saudi Arabia’s non-oil trade. If global shipping increasingly turns toward the Red Sea as a safer and more stable trade corridor, container and cargo traffic through ports such as Jeddah Islamic Port and King Abdullah Port could increase substantially.

This shift could lead to expanded re-export activity as Saudi ports become distribution centers for Asian goods heading to the Middle East and Africa. It may also stimulate the growth of logistics services such as storage, handling and distribution while increasing demand for trucking and inland transport across the kingdom.

In addition, ports experiencing higher commercial activity often attract related industries, including light manufacturing, assembly operations and regional distribution centers. These developments could strengthen the economic zones surrounding Saudi ports.

As port infrastructure continues to improve and connections to road and rail networks expand, Saudi Arabia may increasingly serve as a major transit hub for goods entering the region rather than simply a destination market. A broader shift of global trade toward the Red Sea could therefore accelerate the expansion of the kingdom’s non-oil trade and support its ambition to become a global logistics hub linking three continents.

Redirecting oil shipments, however, may affect transportation costs. Some cargo bound for Asia from the Red Sea must travel longer distances than shipments departing from the Gulf, which can increase fuel consumption and operating costs. Higher demand at Red Sea ports could also raise service fees or extend vessel waiting times if traffic intensifies.

Marine insurance also plays a role in the cost of transporting oil. Insurers often reassess risk levels when shipping routes change, potentially adjusting premiums or adding surcharges on certain voyages.

Despite these factors, Al-Halil believes the challenges remain manageable. Saudi Arabia’s advanced infrastructure and pipeline network allow crude oil to move quickly to large-scale loading facilities capable of handling significant volumes. Continued upgrades to port capacity, improved vessel traffic management and long-term agreements with shipping and insurance companies are also effective tools for keeping costs under control.

In the short term, modest increases in logistics costs may be the price of strategic flexibility. Ensuring uninterrupted energy supplies to global markets, he said, is ultimately more valuable than marginal differences in shipping costs in a world where energy security remains paramount.



Trump Lifts Some Canada Tariffs Ahead of Midterms

President Donald Trump arrives on Air Force One, Friday, Oct. 23, 2026, at President Donald J. Trump International Airport in West Palm Beach, Fla. (AP Photo/Mark Schiefelbein)
President Donald Trump arrives on Air Force One, Friday, Oct. 23, 2026, at President Donald J. Trump International Airport in West Palm Beach, Fla. (AP Photo/Mark Schiefelbein)
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Trump Lifts Some Canada Tariffs Ahead of Midterms

President Donald Trump arrives on Air Force One, Friday, Oct. 23, 2026, at President Donald J. Trump International Airport in West Palm Beach, Fla. (AP Photo/Mark Schiefelbein)
President Donald Trump arrives on Air Force One, Friday, Oct. 23, 2026, at President Donald J. Trump International Airport in West Palm Beach, Fla. (AP Photo/Mark Schiefelbein)

President Donald Trump's administration lifted some tariffs on Canadian imports Friday, two weeks ahead of midterm elections, after a vulnerable Republican candidate said she'd lobbied for the change.

The easing of tariffs will apply to products including "plywood sheets, some paper products, certain machinery and refrigeration equipment," the White House said in a statement.

The change could help Senator Susan Collins, who faces a strong challenge from a Democrat in the US-Canada border state of Maine, which has been hit hard by Trump's trade war.

She posted on social media that she had "secured" the exemptions for "products crucial to Maine's agricultural industries, including blueberry, potato, apple, and seaweed producers."

Democrats are targeting Collins's seat in their attempt to win control of Congress from the Republicans in the November 3 midterms.

The economies of the United States and Canada are heavily inter-connected, with roughly 70 percent of all Canadian exports heading to the United States.

Tensions between the North American neighbors have been high since trade talks broke down in August, with Trump imposing a slew of new tariffs in response.

Friday's action lifts tariffs on certain goods, but imposes levies on new ones, including carpets, certain valves and waste products, the White House said. The new measures will take effect on October 30.

"The Canadian government takes note of these recent tariff measures adopted by the United States," Dominic LeBlanc, Ottawa's minister in charge of US-Canada trade, said in a statement to AFP.

"While evaluating these recent measures, Canada remains ready to work together in a constructive and good-faith manner" with the US, he added.

Collins said many farmers in her state "rely on specialized equipment, packaging materials, and other products from Canada that are either unavailable from American suppliers or cannot be replaced without incurring significant expense."

Previous Trump levies on autos, steel, aluminum and lumber have hit Canada hard, forcing job losses and stunting growth. Canada has entered a technical recession this year after two consecutive quarters of economic contraction.

Trump's tariffs enforced after the talks broke down impacted around $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States, targeting products ranging from hockey sticks to cement.

Since taking power in his second term, Trump has upended the global trade order by imposing wide-ranging tariffs on friend and foe alike, saying that other countries have been taking advantage of the United States.

He has also explicitly tied some threatened tariffs to political or foreign policy objectives.


Saudi Arabia Ranks First in GCC, 12th Globally in 2026 Marsh CFA Institute Global Pension Index

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Arabia Ranks First in GCC, 12th Globally in 2026 Marsh CFA Institute Global Pension Index

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The Kingdom of Saudi Arabia ranked first among GCC states and 12th globally out of 55 pension systems in the 2026 Marsh CFA Institute Global Pension Index. The Kingdom's overall score climbed to 73.2 out of 100, up from 67.6 in 2025, continuing an upward trajectory that has seen it advance 15 places since 2022.

The Kingdom achieved notable gains across the index's three primary pillars. In the Integrity sub-index—which evaluates regulatory governance, member communication, and participant rights—Saudi Arabia scored 83.5, up 9.3 points from the previous year, securing an A rating, the highest classification in the category.

The Kingdom's Sustainability score increased to 61.2 points from 54.6, while Adequacy rose to 77.2 from 75, maintaining an overall B grade, SPA reported.

With its 73.2 score, Saudi Arabia outperformed established international pension systems categorized within the B band, including the United Kingdom, Canada, France, Germany, Belgium, Ireland, and Hong Kong, while leading all participating Gulf nations.

The index noted that Saudi Arabia's advancement was driven by sustained governance reforms, regulatory enhancements, data modernization, and stronger safeguards for scheme beneficiaries.

These results reflect ongoing modernization within the national social insurance ecosystem led by the Social Insurance, aimed at expanding benefit adequacy and safeguarding long-term fiscal sustainability.

Published in collaboration with the Monash Centre for Financial Studies, the 18th edition of the Marsh CFA Institute Global Pension Index evaluates retirement systems covering two-thirds of the world's population across more than 50 sub-indicators.


China’s January-September Fiscal Revenue up 5.1% y/y

People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
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China’s January-September Fiscal Revenue up 5.1% y/y

People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)

China's fiscal revenue increased 5.1% in the first nine months of 2026 from a year earlier, following a gain of 5.7% in the January-August period, the finance ministry said on Friday.

In the January-September period, fiscal revenue totaled 17.2 trillion yuan ($2.58 trillion), with tax revenue growing 6.1% year-on-year and non-tax ‌revenue expanding ‌1.2%.

Fiscal expenditure was up ‌1.0% ⁠on the year ⁠in the period, slowing from a rise of 1.2% in the first eight months.

China has accelerated local special bond issuance this year and plans to front-load part of its 2027 ⁠quota, finance ministry official Zhao Zeyong ‌told a press ‌conference on Friday.

Net special bond issuance ‌from January to September reached 3.56 trillion ‌yuan, accounting for 81% of the annual quota, and issuance for September was at 633.5 billion yuan, up by 214.8 billion yuan ‌from the same month last year, Zhao said.

Revenue from ⁠government ⁠land sales fell 27.9% on the year for the period from January to September, narrowing from a fall of 28.6% in the first eight months of this year.

The property sector downturn that began in mid-2021 has eroded land-sale revenue, long a crucial funding source for Chinese local governments.