Policy Resilience and Transport Lifelines: Saudi Arabia’s Shield Against the Hormuz Crisis

Saudi Arabia's capital Riyadh (SPA)
Saudi Arabia's capital Riyadh (SPA)
TT

Policy Resilience and Transport Lifelines: Saudi Arabia’s Shield Against the Hormuz Crisis

Saudi Arabia's capital Riyadh (SPA)
Saudi Arabia's capital Riyadh (SPA)

As the world grapples with unprecedented turbulence fueled by the US-Israeli-Iranian confrontation, and as global supply chains reel from the closure of the Strait of Hormuz, the Saudi economy has emerged as an exceptional model of resilience. This stability is no coincidence; rather, it is the fruit of proactive policies and early investments in diversifying transport arteries and logistics. This strategic integration has allowed the Kingdom to transform its geography from a point of dependency on threatened waterways into an impregnable economic fortress. Through land, sea, and air routes that have become "alternative lifelines," the Kingdom has not only ensured the flow of energy but also secured the region’s needs for food and medicine, cementing its status as a vital logistical hub amidst the surging waves of conflict.

Economic experts believe that the efficacy of Saudi economic policies, coupled with the cultivation of inherent strengths and diverse transport and export options, has contributed significantly to the economy's ability to withstand the repercussions of the ongoing regional conflict.

Policy Efficacy and Strategic Strength

In this context, Fadl bin Saad Al-Buainain, a member of the Shura Council and economic consultant, affirmed that the Saudi economy is characterized by strength, durability, and sustainability. He noted its capacity to adapt to emergency shifts by leveraging its fundamental assets, thereby mitigating the impact of the current crisis despite its high risks.

Al-Buainain emphasized that the sheer depth and scale of the Saudi economy allow it to absorb sudden shocks and even convert them into opportunities to address any emerging shortages. He pointed out that the strategic vision for the oil sector and "qualitative hedging" to ensure supply security have created critical alternatives for oil exports following the closure of the Strait of Hormuz.

According to Al-Buainain, the sustainability of exports has bolstered the reliability of Saudi Aramco and maintained government revenues, while maximizing gains from high oil prices to compensate for any reduction in exported volumes.

Trucks on the highway between Riyadh and Al-Ahsa, about 200 kilometers east of the Saudi capital (AFP)

The Pivotal Role of "Vision 2030"

Al-Buainain underscored the fundamental role of reforms stemming from Saudi Vision 2030 in enhancing economic diversification and strategic hedging across financial and oil sectors. He noted that prudent management, directly overseen by Crown Prince Mohammed bin Salman, served as the first line of defense against the crisis.

He cited S&P Global Ratings' affirmation of the Kingdom’s "A+" credit rating with a "Stable" outlook as the "strongest neutral evidence of economic durability and efficiency." He also highlighted the defensive aspect, stating: "The readiness of the military sectors was the most critical factor in protecting oil installations and achieving economic security," noting that the Kingdom’s Red Sea coastline has been vital in sustaining trade lines and protecting regional commerce.

A Logistical Platform and Humanitarian Responsibility

According to Al-Buainain, the Kingdom has transformed into a global logistics platform, opening its airports and ports as alternatives for neighboring countries. This has guaranteed the sustainability of food and medicine supply chains, providing much-needed stability to Gulf markets. In the energy sector, Saudi Arabia continued to meet customer demands and even offered additional barrels on the spot market, utilizing the East-West Pipeline and overseas storage reserves.

"In the transport and logistics sector, the Kingdom successfully managed the situation of stranded individuals, returning them to their home countries and ensuring the operation of Gulf airlines by opening alternative airports," Al-Buainain added.

He further revealed a massive humanitarian and logistical role played by Saudi ports in the Eastern Province, which provided food, medicine, and fuel to approximately 3,200 stranded ships and 40,000 sailors in the Arabian Gulf following Iranian threats to maritime safety. He stressed that "the Kingdom's humanitarian efforts do not waver, even under the darkest circumstances and in the face of barbaric acts that violate international law."

Stability in the Face of Crisis

For his part, Engineer Abdullah Al-Mobty, Chairman of the Abha Chamber and former Head of the Federation of Saudi Chambers, told Asharq Al-Awsat that the nature of the Saudi economy has made it resilient against the fallout of the US-Israeli-Iranian confrontation. He noted that the Kingdom has shown remarkable stability throughout historical crises thanks to a "clear vision set by the leadership to strengthen the economy through wise methodologies and plans."

Al-Mobty attributed this resilience to Riyadh’s role as a "reliable strategic depth," maintaining the best possible economic position even during a war of this magnitude. He noted that Saudi Arabia views proactive planning and foresight as an integral part of its commitment to the nation and its citizens' interests.

Trucks loaded with goods wait to cross into Qatar at the Salwa border crossing in eastern Saudi Arabia (AFP)

Land Transport Solutions

Al-Mobty emphasized that the Kingdom has never been an advocate of war; instead, its vision focused on creating strategic alternatives. He pointed to the Kingdom's ability to bypass the Strait of Hormuz by pumping crude via the Red Sea and securing the delivery of essential supplies to Gulf states through existing infrastructure.

"One of the immediate results we witnessed was the efficiency of the Saudi land transport sector," Al-Mobty stated. "It responded instantly and with massive capacity to cover the needs of the UAE and neighboring countries, both in passenger transport and securing supply chains. This proved the Kingdom’s success in turning its geographical location into an economic fortress for the region."

The Capacity to Absorb Shocks

Abdullah bin Zaid Al-Mulihi, CEO of Saudi Techno Excellence Company, stressed that the effectiveness of the Kingdom's plans in managing economic, trade, and investment sectors has granted it an exceptional ability to face the massive challenges currently paralyzing global and regional economies.

Al-Mulihi explained to Asharq Al-Awsat that Saudi economic policies are designed with high flexibility to absorb crises, citing the Kingdom's historical resilience during the 2008 global financial crisis. He noted that policies promoting diversification and advanced infrastructure, including land and sea ports, have optimized the Kingdom's unique geography.

"The multiplicity of transport and export options is what achieved this strategic resilience," Al-Mulihi said. He added that the Saudi land transport sector has become the "driving engine" of the region's economy, experiencing a strong boom as it secures the movement of goods and people, particularly to the UAE, reinforcing the sector as a primary pillar in confronting the current crisis.



EU to Vote on Trump Tariff Deal -- but Eyes Rest of World

The European Parliament will vote on whether to cut EU tariffs on some US imports. CHARLY TRIBALLEAU / AFP/File
The European Parliament will vote on whether to cut EU tariffs on some US imports. CHARLY TRIBALLEAU / AFP/File
TT

EU to Vote on Trump Tariff Deal -- but Eyes Rest of World

The European Parliament will vote on whether to cut EU tariffs on some US imports. CHARLY TRIBALLEAU / AFP/File
The European Parliament will vote on whether to cut EU tariffs on some US imports. CHARLY TRIBALLEAU / AFP/File

European Union lawmakers are on track to give a green light -- with conditions -- Thursday to the bloc's tariff deal with US President Donald Trump, which Europe hopes to salvage while also racing to diversify its trade ties around the globe.

Brussels and Washington clinched the deal last summer that had set tariffs at 15 percent for most EU goods.

But Trump's 2025 tariff blitz, including hefty levies on steel, aluminium and car parts, has jolted the 27-country bloc into cultivating trade ties around the world.

From deals signed with South America to Australia, the EU has its eyes on many prizes.

But that doesn't mean the EU intends to walk away from the 1.6 trillion euro ($1.9 trillion) relationship with its main trade partner, the United States, AFP reported.

The European Parliament is voting Thursday on whether to cut EU tariffs on some US imports -- as a first step towards implementing the 2025 deal -- but with additional safeguards.

The potential green light comes after months of delay as lawmakers resisted approving the accord due to transatlantic tensions over Greenland -- and then put it on hold again following the US Supreme Court's ruling striking down Trump's levies.

The ball started rolling again after the European Commission, in charge of EU trade policy, said it would stick to the pact despite the US ruling and called on lawmakers to do the same, having received reassurances from Washington.

Trump, however, retaliated after the ruling with a new tariff regime -- pushing EU lawmakers to tighten the existing agreement with numerous safeguards.

- Losing access to US energy? -

Lawmakers leading on trade have added several provisions: making an EU tariff reduction automatically lapse in March 2028, and tying tariff cuts on steel and aluminium goods to similar reductions by the US side.

Not all members of the parliament are convinced. French EU lawmakers from the centrist Renew group have said they will vote against the agreement.

"The only political value this agreement had to offer was stability and predictability, even if many say it's an unfair deal. If it no longer even provides predictability, there's no reason to support the deal, even if it has been improved," said MEP Pascal Canfin.

The United States has urged the bloc to implement the agreement.

Washington's ambassador to the EU Andrew Puzder told the Financial Times that if the bloc delayed further, it risked losing "favorable" access to US liquefied natural gas at a time when the Middle East war has led to surging energy costs.

Before the US tariff deal is implemented by the bloc, it still needs to be negotiated with EU member states -- although Brussels hopes talks will go quickly.

- 'Trump factor' -

It is the EU's vulnerability to the consequences of wars and other shocks that has pushed Commission chief Ursula von der Leyen to make diversifying trading partners a priority, to cut overdependence on the United States and China.

The frenzy began with a long-awaited accord signed with the South American Mercosur bloc in January. Weeks later, Brussels struck another pact with India and just this week clinched a stalled deal with Australia.

"The Trump factor sped up their conclusion, for us as well as for our partners," economist Andre Sapir said.

Spurred by Trump, Sapir said, the EU has been pushing to create the world's largest network of free trade areas -- a strategy with a "defensive dimension" allowing it to resist trade "coercion".

"This free trade network carries weight in our discussions with the two giants, the United States and China," he said.

"These agreements are part of our arsenal," Sapir, of the Bruegel think tank, added. "Our strategic weapons in the international order."


China Shipping Giant Cosco Resumes Bookings to Some Gulf Countries

A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)
A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)
TT

China Shipping Giant Cosco Resumes Bookings to Some Gulf Countries

A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)
A cargo ship operated by Cosco Shipping is docked at the foreign trade container terminal of Qingdao Port, operated by Shandong Port Group, in China's eastern Shandong province on March 25, 2026. (Photo by CN-STR / AFP)

Chinese shipping giant Cosco said on Wednesday that it was resuming new bookings for container shipments to some Gulf countries, after a three-week suspension in response to the Middle East war.

The state-owned, Shanghai-based firm was among several major shipping groups to pause operations in the Strait of Hormuz, a key waterway through which one-fifth of the world's oil and gas passes normally.

Tehran has said several times it was not targeting friendly nations, but transits through the Strait had nevertheless largely ground to a halt.

Iran said in a statement circulated by the International Maritime Organization on Tuesday that "non-hostile vessels" would be granted safe passage through the waterway.

Cosco "resumed new bookings for general cargo containers for shipments" from the "Far East" to the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, and Iraq "with immediate effect", according to a company statement.

It did not mention shipments travelling in the opposite direction, from the Gulf.

"New booking arrangements and the actual carriage are subject to change due to the volatile situation in the Middle East region," it added.

Cosco, which operates one of the world's largest oil tanker fleets, announced on March 4 that it would suspend new bookings for services for routes through the Strait of Hormuz owing to the "escalating conflicts in the Middle East region and resultant restrictions on maritime traffic".


Qatar Emir Makes Minor Changes to QIA Board

People visit a mall in Doha on March 23, 2026. (Photo by AFP)
People visit a mall in Doha on March 23, 2026. (Photo by AFP)
TT

Qatar Emir Makes Minor Changes to QIA Board

People visit a mall in Doha on March 23, 2026. (Photo by AFP)
People visit a mall in Doha on March 23, 2026. (Photo by AFP)

Qatar's Emir Sheikh Tamim bin Hamad Al Thani issued a decree on Wednesday ⁠making minor changes to ⁠the board of the ⁠Qatar Investment Authority, while keeping Sheikh Bandar bin Mohammed bin Saud Al Thani as chairman and Sheikh ⁠Mohammed ⁠bin Hamad bin Khalifa Al Thani as deputy chairman.

The decision stipulated that QIA’s Board of Directors would be restructured as follows: Sheikh Bandar bin Mohammed bin Saud Al Thani as Chairman, Sheikh Mohammed bin Hamad bin Khalifa Al Thani as Deputy Chairman, Ali bin Ahmed Al Kuwari as a member, Saad bin Sherida Al Kaabi as a member, Sheikh Faisal bin Thani bin Faisal Al-Thani as a member, Nasser bin Ghanim Al Khelaifi as a member, and Hassan bin Abdullah Al Thawadi as a member.

The decision is effective starting from its date of issue and is to be published in the official gazette.