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.



SABIC, Lenovo Sign MoU to Explore Cooperation Opportunities

The MoU was signed on the sidelines of LEAP 2026 in Riyadh. (SABIC)
The MoU was signed on the sidelines of LEAP 2026 in Riyadh. (SABIC)
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SABIC, Lenovo Sign MoU to Explore Cooperation Opportunities

The MoU was signed on the sidelines of LEAP 2026 in Riyadh. (SABIC)
The MoU was signed on the sidelines of LEAP 2026 in Riyadh. (SABIC)

Saudi Basic Industries Corporation (SABIC) signed a memorandum of understanding (MoU) with global technology company Lenovo on the sidelines of LEAP 2026 in Riyadh, reported the Saudi Press Agency on Wednesday. The agreement aims to explore strategic cooperation opportunities that support innovation in the industrial sector.

The MoU reflects the two companies' commitment to supporting Saudi Arabia's transformation into a global hub for innovation and advanced industries. It establishes a framework to identify areas of cooperation and leverage their expertise to develop advanced industries and innovative technological capabilities in Saudi Arabia and beyond.

Through the cooperation, SABIC and Lenovo will explore opportunities to combine their expertise and capabilities in areas that support industrial development, knowledge transfer, and technological advancement.

Lenovo continues to expand its presence in Saudi Arabia after opening its regional headquarters in Riyadh earlier this year, with plans to establish research and development and manufacturing facilities. The investments aim to strengthen local capabilities, advance knowledge transfer and research, and develop Saudi talent in engineering, advanced manufacturing, and emerging technologies.


Austria Seeking Digital Partnerships, Joint Investments with Saudi Arabia

Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll, LL.M., and Saudi Minister of Communications and Information Technology Abdullah Alswaha at LEAP 2026 in Riyadh. (Asharq Al-Awsat)
Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll, LL.M., and Saudi Minister of Communications and Information Technology Abdullah Alswaha at LEAP 2026 in Riyadh. (Asharq Al-Awsat)
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Austria Seeking Digital Partnerships, Joint Investments with Saudi Arabia

Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll, LL.M., and Saudi Minister of Communications and Information Technology Abdullah Alswaha at LEAP 2026 in Riyadh. (Asharq Al-Awsat)
Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll, LL.M., and Saudi Minister of Communications and Information Technology Abdullah Alswaha at LEAP 2026 in Riyadh. (Asharq Al-Awsat)

Saudi-Austrian relations are heading toward a new phase that transcends political and diplomatic cooperation into viable commercial and research partnerships, as well as executable digital projects. This shift places an increasing focus on artificial intelligence, digital government, secure and sovereign digital infrastructure, applied research, and industrial technology.

Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll, LL.M., told Asharq Al-Awsat that his country was seeking “to help translate the political relationship into concrete business and research partnerships”.

Pröll is in Saudi Arabia to take in the LEAP 2026 conference in Riyadh.

“Meeting directly with Saudi ministers gives us the chance to talk frankly about where our two digital agendas overlap and where we can genuinely work together,” he added.

He hoped that the relationships built this week turn into real projects over the coming months.

Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll during a dialogue session at LEAP 2026. (Asharq Al-Awsat)

Saudi-Austrian relations

Pröll said: “Saudi Arabia and Austria have a long-standing and friendly relationship, and I see real momentum building specifically in the digital and technology space.”

“Both our countries are pursuing ambitious, government-led digital transformation agendas - Vision 2030 on the Saudi side, and on ours a clear push toward digital sovereignty, from our Public AI Initiative and our Chatbot ‘ida’ for the federal administration, GovGPT, to our digital identity system, ID Austria,” he went on to say.

“That gives us a genuinely shared language: both countries understand digitalization not just as a technology question, but as a question of capability, resilience and sovereignty.”

The delegation at LEAP 2026 “brings together such a broad Austrian delegation - our national research institution, our federal infrastructure and telecom regulatory bodies, and leading companies in cloud infrastructure and engineering technology - is itself a sign of how seriously we take this partnership,” he noted.

LEAP: From dialogue to projects

Commenting on LEAP, Pröll said: “It is one of the very few platforms where you can have serious conversations with governments, researchers and industry from across the world in the space of a few days.”

“My first objective is to present Austria's approach to digital sovereignty and responsible AI to an international audience - what we have built with GovGPT, our Public AI initiatives, and our push for a European approach to digital infrastructure - and to learn from what Saudi Arabia has achieved at a pace and scale that few countries can match,” he stressed.

“We have brought the heads of our national research institution, our federal real estate and infrastructure company, our telecoms and media regulator, and companies active in cloud and data infrastructure and in engineering and mobility technology. My objective is to open doors for them - to introduce them to the right Saudi counterparts, in government and in industry, and to help translate the political relationship into concrete business and research partnerships,” he said.

AI’s ‘immediate potential’

Pröll said AI is probably the area where he sees the most “immediate potential”.

“Digital government is a good example: we have built GovGPT as a tool to make our public administration more efficient and more accessible, and Saudi Arabia has invested heavily in digitizing government services at scale - there is a lot we can learn from each other on implementation, on user adoption, on what actually works,” he stated.

“On data infrastructure, Austria is investing significantly in expanding our own sovereign compute capacity, and Saudi Arabia is building some of the most ambitious digital infrastructure projects in the world. That is an area where I would like to explore how Austrian expertise - in engineering, in energy-efficient and secure infrastructure - can be part of that story,” he told Asharq Al-Awsat.

Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll during a dialogue session at LEAP 2026. (Asharq Al-Awsat)

AI governance

Pröll raised the question of responsible and trustworthy AI. “I've argued, including at the UN Global Dialogue on AI Governance, for a binding international framework for AI governance,” he said.

“I don't see that as a brake on innovation. I see trust as a precondition for AI to be adopted at scale, by citizens and by businesses,” he continued.

“I would like Saudi Arabia and Austria to be part of that conversation together, alongside our work on AI research through institutions, like our Austrian Institute of Technology,” he stressed.

Partnerships and investment

Pröll said that opportunities for Saudi and Austrian companies are not limited to exchanging expertise, but extend to joint research and development, projects, and direct investments.

“Each of the organizations travelling with me brings something specific to the table. Our national research institution works on applied AI, data infrastructure and technology research, and is a natural partner for joint R&D with Saudi research institutions and universities,” he went on to say.

“Our federal real estate company manages public infrastructure at national scale and has real expertise to offer on developing the physical infrastructure that digital and data projects need. Our telecoms and broadcasting regulator can offer a regulatory dialogue on everything from spectrum to platform governance, which becomes more important as both our digital sectors grow,” he noted.”

“We have a company specializing in cloud and data center infrastructure that is actively looking at international markets, and a global engineering technology company with deep expertise in powertrain, mobility and simulation technology that is highly relevant to Saudi Arabia's industrial diversification and mobility ambitions,” he added.

Pröll said: “My hope is that this visit is the start - that these meetings lead to concrete pilot projects, business partnerships, and where it makes sense, direct investment in both directions.”

“I see Austrian companies as reliable, high-quality partners for the technology ambitions of Vision 2030, and I hope Saudi partners will see the same potential we do.”

Austrian State Secretary at the Federal Chancellery for Digital Affairs, Constitution and Public Service Alexander Pröll at LEAP 2026. (Asharq Al-Awsat)

Beyond AI

Pröll added that technological cooperation between Austria and Saudi Arabia does not stop at artificial intelligence, pointing to significant potential in quantum technologies and quantum communications.

“Austria has a strong research base in quantum computing and quantum communication, and this is a field where early cooperation between countries can shape the next decade of technological competitiveness,” he explained.

Cybersecurity is another: as our societies digitize, protecting that infrastructure becomes as important as building it, and it's an area where regulatory and technical cooperation go hand in hand,” he revealed.

He also pointed to mobility and engineering technology, “where Austrian companies are global leaders in powertrain development, simulation and testing - directly relevant to Saudi Arabia's ambitions in advanced manufacturing and future mobility.”

Beyond LEAP

Pröll stressed that the most critical step following the Riyadh visit is to ensure that the momentum does not stall once the conference concludes.

“I would like to see this visit translate into a structured, ongoing dialogue - regular contact between our ministries and agencies, and a clear framework for cooperation that the companies and institutions in this delegation can build on,” he said.

“Concretely, I would welcome the chance to follow up with a Saudi delegation visiting Austria, so our partners can see firsthand what we have built and continue these conversations on our home ground,” he remarked.

“What matters most to me is that the relationships built this week don't stay at the level of good intentions, but turn into real projects - in research, in infrastructure, in AI governance - over the coming months,” he added.


Chevron Expands Venezuela Bet with $7 Billion Plan to Double Output in Five Years

In this file photo taken on Jan. 26, 2022, the Chevron logo is displayed at a gas station in El Segundo, California. (AFP/Getty Images)
In this file photo taken on Jan. 26, 2022, the Chevron logo is displayed at a gas station in El Segundo, California. (AFP/Getty Images)
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Chevron Expands Venezuela Bet with $7 Billion Plan to Double Output in Five Years

In this file photo taken on Jan. 26, 2022, the Chevron logo is displayed at a gas station in El Segundo, California. (AFP/Getty Images)
In this file photo taken on Jan. 26, 2022, the Chevron logo is displayed at a gas station in El Segundo, California. (AFP/Getty Images)

Chevron will invest more than $7 billion to double its crude output from Venezuela to about 600,000 barrels per day in the next five years, as part of a plan to expand joint ventures with state company PDVSA following an energy reform. 

The US oil major's expansion, announced on Wednesday, is the culmination of several months of negotiation conducted separately from Washington's announcement of an unprecedented deal to take majority control of about 65 billion barrels of Venezuela's oil reserves. 

Venezuela has the world's largest ‌oil reserves, but ‌years of mismanagement, corruption, under-investment and US sanctions have severely weakened ‌its ⁠oil industry. 

Production peaked ⁠at more than 3 million barrels per day in the late 1990s before declining sharply. In recent months it has been around 1.1 million to 1.2 million bpd. 

Chevron's expanded agreement gives it the right over nearly half of that production. Lately, it has produced around 290,000 bpd of crude, all of it exported to the US. 

The agreements provide enhanced fiscal, commercial and legal terms and include additional acreage in Venezuela's ⁠Orinoco Belt, Chevron said. 

US PUSHES ENERGY INVESTMENT 

Following the US capture and ‌removal of Venezuelan President Nicolas Maduro from office ‌in January, US President Donald Trump has pushed a $100 billion reconstruction plan for Venezuela's energy sector, ‌urging US oil companies to invest in the country. 

While Chevron's Venezuela operations have ‌continued uninterrupted for at least 100 years, fellow oil producers ExxonMobil and ConocoPhillips have remained on the sidelines. 

Both companies exited the country in 2007 when their assets were nationalized under the previous government of President Hugo Chavez. 

Chevron said the investment would support production growth at its three Venezuelan joint ventures, ‌which have increased output by 15% so far this year. Total costs are expected to remain below $20 per barrel, the company ⁠said. 

Chevron's Petroindependencia joint ⁠venture, in which it holds a 49% stake, received rights to develop two new areas in Venezuela's Orinoco Belt, expanding its operations in the region. 

"Chevron's history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential and its ability to compete for investment within our portfolio for decades," said Chevron CEO Mike Wirth. 

Chevron has operated in Venezuela since 1923 and has three joint ventures in the country. Petroindependencia and Petropiar operate in the Orinoco Belt, while Petroboscan operates in western Zulia state. 

The expanded acreage and improved terms give Chevron a larger position in Venezuela as the US oil major seeks to increase production from the country's vast extra-heavy crude resources. 

Italy's Eni, India's ONGC, Colombia's GeoPark and US firm GE Vernova are also expected to sign agreements for energy projects in Venezuela this week.