Saudi Arabia Bypasses ‘Hormuz’ Disruption with Transcontinental Network

Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
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Saudi Arabia Bypasses ‘Hormuz’ Disruption with Transcontinental Network

Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)

As global supply chains face unprecedented strain, and the Strait of Hormuz, one of the world’s most critical chokepoints, is disrupted, Saudi Arabia has positioned its transport system as a vital alternative, helping keep global trade moving.

Under the National Transport and Logistics Strategy launched by Crown Prince Mohammed bin Salman in 2021, the kingdom has built a transcontinental network that is now being tested in real time.

Officials say operational success rates exceed 97% in crisis management and evacuation.

The system, designed to position Saudi Arabia as a hub linking three continents, has been activated through new logistics zones, partnerships with global firms, and faster export and import procedures across air, land, and sea.

This has helped ensure the steady flow of goods, services, and energy, shifting the kingdom’s role from infrastructure developer to a key stabilizing force in times of crisis.

Air response

Logistics expert Hassan Al Helil told Asharq Al-Awsat that air transport now drives emergency response, handling 70% to 80% of rapid evacuations.

Sea transport is used for larger operations involving 500 to 2,000 people, with response times of 24 to 72 hours.

He said operations rely on tight coordination and strict safety protocols, including medical screening and in-transit care, despite challenges such as congested airspace, longer flight times of 20% to 30%, regulatory differences, delays of up to 48 hours, and weak infrastructure in crisis areas that can cut efficiency to 40%.

Even so, Saudi Arabia maintains a success rate above 97%, supported by flexible operations and tested emergency plans.

Red Sea shift

Maritime transport has emerged as a key alternative. Red Sea ports, led by Yanbu, are handling cargo that once passed through the Strait of Hormuz.

Integrated with the East-West pipeline, the system allows exports to be rerouted away from tension zones without disrupting supply.

Crude exports from Yanbu’s northern and southern terminals averaged 4.4 million barrels per day over five days through Tuesday. The kingdom is aiming to raise Red Sea exports to 5 million barrels per day.

Transport costs have dropped 58% as vessels move closer to Saudi ports. Large cargoes, including wind turbines, have been redirected from Jubail to Yanbu to speed delivery.

Smarter routes

Al Helil said diversifying export routes has cut exposure to chokepoints by up to 40%.

This helped absorb global shipping cost increases of up to 50%, alongside added geopolitical risk fees and higher insurance costs.

Despite global delays of three to 10 days, Saudi port efficiency and temporary exemptions for vessels reduced idle time by 25% and limited price volatility.

Land and rail

Saudi Arabia has also become a key land corridor for Gulf trade, backed by more than 500,000 trucks and expanded rail capacity exceeding 2,500 containers a day.

Thousands of trucks have moved goods to Kuwait and Bahrain, underscoring the kingdom’s growing role as a regional distribution hub.

The system has also supported passenger movement, including overland transport of Kuwaiti citizens from Riyadh and Iraqi flights arriving at Arar airport.

Regional links

The Saudi Ports Authority has launched a new trade bridge linking Dammam with Sharjah in partnership with Gulftainer, offering faster multimodal shipping.

A Gulf Shuttle service now connects Dammam’s King Abdulaziz Port with Bahrain’s Khalifa Bin Salman Port.

Saudi Arabia Railways has also launched a freight corridor linking eastern ports with the Al Haditha border crossing, strengthening trade links with Jordan and beyond.

Passengers and crisis response

The system has played a key humanitarian role, facilitating the movement of stranded travelers.

Arar International Airport has received flights from Iraq, while maintaining operational success above 97%.

Authorities have also introduced temporary exemptions for ships, cutting idle time by up to 25% and reducing costs without compromising safety.

This has lowered maritime transport costs by 8% to 18% and reduced price volatility by 10% to 20%.

Food security, shuttle shipping

The system has also supported regional food security.

Land crossings, particularly Abu Samra, have ensured steady supplies to Qatar.

Al Helil said Saudi Arabia has diversified imports from more than 25 countries and maintains strategic reserves of up to 12 months for some goods, with availability exceeding 95%.

Also speaking to Asharq Al-Awsat, logistics specialist Nashmi Al Harbi said rail has become a reliable alternative amid disruptions at sea.

A new freight route linking eastern ports to Al Haditha can carry more than 400 containers per train, cutting shipping time in half.

In February 2026, the Saudi cabinet approved a high-speed rail link between Riyadh and Doha, reducing travel time to two hours and supporting steady goods flows.

Al Harbi said that shuttle shipping, using smaller vessels that move frequently between ports, is reshaping supply chains and costs.

He said a parallel maritime link has eased pressure on the King Fahd Causeway, which handled 4.7 million vehicles in 2025, while supporting intra-Gulf trade nearing $1 billion.

Saudi Arabia is also attracting global logistics firms. DHL is investing 130 million euros to build a regional hub in Riyadh, while Maersk has opened a new bonded warehouse.

These efforts have lifted the kingdom 17 places in the World Bank’s Logistics Performance Index to 38th globally.

Saudi Arabia has moved beyond crisis response to strengthen its position in global trade. With integrated ports, stronger infrastructure and flexible operations, it can reroute trade and energy flows efficiently, turning disruption into opportunity.



Saudi Arabia's Mutlaq Al-Ghowairi Contracting Sets IPO Price Range at $2.9-$3.3 per Share

Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)
Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)
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Saudi Arabia's Mutlaq Al-Ghowairi Contracting Sets IPO Price Range at $2.9-$3.3 per Share

Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)
Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)

Saudi Arabia's Mutlaq Al-Ghowairi Contracting Co. has set the price range for its initial public offering (IPO) at between 11 riyals ($2.9) and 12.5 riyals ($3.3) per share, and began the institutional book-building period ahead of a planned offering of 30 percent of its shares on the Saudi Exchange.

Al Rajhi Capital, acting as lead manager, financial adviser, bookrunner and underwriter, alongside Morgan Stanley Saudi Arabia as financial adviser, bookrunner and underwriter, said the offering consists of 240 million ordinary shares in Mutlaq Al-Ghowairi Contracting Co., representing 30 percent of the company's share capital.

According to a filing on the Saudi Exchange (Tadawul), the book-building period for participating institutions began on Sunday, May 31, 2026, and will continue until 3:00 p.m. Saudi time on Thursday, June 4, 2026.

The minimum subscription size for participating institutions is 25,000 shares, while the maximum is 39.99 million shares. Participation in the book-building process is limited to eligible investors in accordance with the Capital Market Authority's rules governing institutional book-building and share allocation in initial public offerings.

The final offer price will be determined after the completion of the book-building process, to be followed by the retail subscription period. The company has initially allocated all 240 million offered shares to participating institutions, representing 100 percent of the total offering.

The filing added that if there is sufficient demand from retail investors, the institutional bookrunners, in coordination with the company, may reduce the allocation to participating institutions to a minimum of 168 million shares, representing 70 percent of the total shares on offer.


Saudi Market Closes Up 0.5%, Kingdom Holding Shares Jump 10%

A man monitors stock movements on the Saudi stock market. (AFP)
A man monitors stock movements on the Saudi stock market. (AFP)
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Saudi Market Closes Up 0.5%, Kingdom Holding Shares Jump 10%

A man monitors stock movements on the Saudi stock market. (AFP)
A man monitors stock movements on the Saudi stock market. (AFP)

Saudi Arabia's benchmark stock index (TASI) ended its first trading session following the Eid al-Adha holiday up 0.5 percent at 11,078 points, with total turnover reaching about 4 billion riyals.

The index touched a session high of 11,080 points and a low of 11,032 points.

Shares of Kingdom Holding led the gainers, surging 10 percent to 13.58 riyals. The stock has gained about 27 percent over the past three sessions, marking its highest closing level since 2016.

The company recently disclosed its combined stake with the Private Office of Prince Alwaleed bin Talal in SpaceX, amounting to 0.63 percent. Based on the company's expected valuation at a potential public offering, the stake is estimated to be worth between $8.32 billion and $10.55 billion.

Al Rajhi Bank shares rose 1 percent to 67.25 riyals.

Shares of Ma'aden, ACWA Power, Riyad Bank, Dr. Sulaiman Al Habib Medical Services Group, Elm, Masar, and Saudi Awwal Bank (SAB) closed higher, posting gains ranging from 1 percent to 4 percent.

Meanwhile, shares of Al Shamel Masar, Saudi Industrial Development Co. (SIDC), Electrical Industries Co., and Dar Al Arkan advanced between 6 percent and 10 percent.


Saudi National Housing Company... From an 'Executive Arm' to the Largest Real Estate Developer in the Region

 NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)
NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)
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Saudi National Housing Company... From an 'Executive Arm' to the Largest Real Estate Developer in the Region

 NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)
NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)

Saudi Arabia’s National Housing Company (NHC) has emerged as a central force in reshaping the Kingdom’s housing market, evolving from a state-backed developer into a key engine of Crown Prince Mohammed bin Salman’s economic reform agenda under Vision 2030.

Far from being a conventional real estate company, NHC today manages residential suburbs and assets accounting for around 20 percent of total real estate product sales in Saudi Arabia, underscoring its growing influence in one of the region’s largest property markets.

Since its launch in 2016, the company has positioned itself at the center of the Kingdom’s housing transformation, helping drive the Housing Program, one of Vision 2030’s flagship initiatives aimed at raising Saudi homeownership to 70 percent by the end of the decade.

NHC Chief Executive Mohammed Albuty said the company had played a pivotal role in restructuring the sector to ensure long-term sustainability beyond direct state financing. He pointed to the 2025 Vision 2030 annual report, which showed Saudi homeownership rising to 66.24 percent, surpassing the government’s interim target of 65 percent for 2025.

NHC was established by royal decree in 2016 as the investment and development arm of what is now the Ministry of Municipalities and Housing. Its creation marked the beginning of a new “national developer” model designed to manage housing assets and projects with greater efficiency and flexibility.

A major turning point came in 2020, when another royal order transferred the company’s ownership to the state, elevating it from a supporting entity to a market leader. The move enabled NHC to launch some of the region’s largest residential suburbs, shifting from managing limited housing complexes to developing integrated cities covering more than 160 million square meters.

The company has also sought to curb construction costs through its digital procurement platform, Supply Pro, which links developers directly with manufacturers and suppliers. The platform currently offers more than 1,500 products from 129 factories and 45 suppliers, helping reduce development costs by around 20 percent.

Speaking at the Real Estate Supply Chain Forum, Albuty said NHC had boosted local content in its projects through supply chain localization agreements and industrial partnerships worth more than SAR 21 billion ($5.6 billion). The deals included SAR 8 billion in supply chain service agreements, SAR 5 billion in industrial localization initiatives and 15 supply contracts worth more than SAR 8 billion.

Maan Alothimeen, NHC’s general manager for supply chains and business support, said Supply Pro had handled transactions exceeding SAR 2 billion over the past two years, with Saudi factories and small- and medium-sized enterprises accounting for 95 percent of the activity.

NHC has also become a platform for local developers, helping transform smaller firms into major players capable of managing billion-riyal projects. By offering investment opportunities in residential and commercial real estate, as well as in the operation of health, education and leisure facilities, the company has encouraged broader private-sector participation.

The strategy has contributed to the delivery of more than 300,000 housing units. The financial stability provided by NHC has also enabled emerging Saudi developers to grow into large companies managing projects valued at more than SAR 263 billion ($70 billion), strengthening the competitiveness of the Saudi property market.

As part of efforts to deepen local industrial participation, NHC signed a memorandum of understanding with the Local Content and Government Procurement Authority to turn its suburban developments into permanent showcases for Saudi-made products, a move expected to generate thousands of jobs in manufacturing and logistics.

Saudi Minister of Municipalities and Housing Majed Al-Hogail said mortgage financing had become a cornerstone of the Kingdom’s real estate expansion. He noted that the value of Saudi mortgage financing had surged from around SAR 200 billion ($53.3 billion) to more than SAR 900 billion ($240 billion) by the end of 2025, representing 27 percent of total Saudi banking portfolios.

Al-Hogail added that the Saudi Real Estate Refinance Co. (SRC) had issued sukuk in the London market to strengthen liquidity links between domestic and international financial markets and secure sustainable funding flows for the housing sector.

In remarks to Asharq Al-Awsat, Khaled Al-Mobid, chief executive of Menassat Real Estate Co., said NHC had become a key implementation arm of Saudi housing policy by increasing the supply of planned residential units, helping stabilize prices in the market.

He noted that the company’s most significant shift had been its evolution from a traditional developer into an “enabler” for private firms. Through the provision of serviced land and infrastructure, NHC allowed smaller developers to participate in large-scale projects and gain operational expertise, contributing to a more mature and professional real estate industry.

Al-Mobid added that NHC’s role extended beyond construction to balancing the housing market itself. By increasing organized housing supply and lowering development costs through economies of scale, the company was helping ease pressure on citizens and improve affordability.

He also said NHC’s partnership-driven model reduced reliance on direct government spending while encouraging private capital inflows and spreading investment risk, supporting the creation of a more financially sustainable housing sector.

As Saudi Arabia moves closer to achieving its Vision 2030 housing targets, NHC’s significance now goes beyond building homes. The company has become a model for a more diversified real estate economy led by private-sector investment and local industry, positioning housing as a driver of broader economic stability and growth.