Global Supply Chains Reshape, Focus Shifts to Saudi Arabia

A container ship at a Saudi port (SPA)
A container ship at a Saudi port (SPA)
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Global Supply Chains Reshape, Focus Shifts to Saudi Arabia

A container ship at a Saudi port (SPA)
A container ship at a Saudi port (SPA)

At a time when global supply chains are being reshaped by rising geopolitical tensions and disruptions to key routes, led by the Strait of Hormuz crisis, Saudi Arabia has emerged as a central player in redirecting trade flows.

Leveraging a unique position linking East and West, and advanced logistics infrastructure reinforced by Vision 2030, the kingdom is positioning itself as a leading destination for global investment in the sector.

What began as a crisis response is now a strategic opening, drawing major logistics firms seeking safer, more reliable hubs.

Specialists say that as reliance on Saudi Red Sea ports grows and alternative routes expand, the kingdom is consolidating its role as a core node in global supply chains and a launchpad for cross-border logistics investment.

Global logistics hub

Nashmi al-Harbi, a logistics consultant, told Asharq Al-Awsat that major crises redraw investment maps, and the Strait of Hormuz is no exception.

“Commercial vessels are increasingly turning to Saudi Red Sea ports as a practical, secure alternative, reflecting the resilience of the kingdom’s infrastructure,” he said.

The shift sends a clear signal that Saudi Arabia is not just a consumer market, but a global logistics hub, in line with Vision 2030, he added.

Al-Harbi said the kingdom has become a lifeline for neighboring states, activating Gulf logistics integration and introducing exceptional measures, including customs facilitation and fee exemptions for goods transiting to Gulf markets.

“Global companies look for predictability and trust, and what the kingdom delivered during this crisis proves it offers both,” he said.

He added that Saudi Arabia’s dual access to the Arabian Gulf and the Red Sea has given it a decisive edge over regional peers.

Pipeline

Exports from Yanbu on the Red Sea have climbed to 3.8 million barrels per day, supported by the East-West pipeline, which has a capacity of about 7 million barrels per day, al-Harbi said.

Built in the 1980s for this purpose, the pipeline is now seen by specialists as a highly strategic asset.

On regional coordination, he said Saudi Arabia has signed rapid logistics linkage agreements with Sharjah Port and ports in Oman and Kuwait, redirecting cargo from the Arabian Sea to Red Sea ports and then overland.

“This operational flexibility sets the kingdom apart,” he said.

Al-Harbi expects supply chains to be restructured, describing the crisis as a turning point in Gulf logistics integration and the start of more flexible, adaptive routes.

Crises drive innovation, he said, predicting wider adoption of smart tracking systems and risk management tools across Saudi supply chains.

He added that Gulf states now recognize the scale of the disruption requires new thinking, and that a return to pre-crisis conditions is unlikely.

Saudi Arabia had already been building its logistics infrastructure under Vision 2030, he said, adding that the current crisis has validated and accelerated that strategy, setting the sector on course for unprecedented growth and global positioning.

Operational capacity

Zaid al-Jarba, an expert in digital transformation and logistics, said Saudi Arabia has stood out not only for its location but also for turning geography into operational strength and for growing its logistics influence.

While many viewed Hormuz disruptions as a risk, Riyadh was steadily building alternatives, he said, developing new routes, more prepared ports, expanded airports, and stronger connectivity to ease bottlenecks.

“The advantage is not just access to the Arabian Gulf and the Red Sea, but the ability to connect them. That is a rare strategic strength,” he said.

Goods entering through Red Sea ports can move across the kingdom to Gulf markets, and vice versa, positioning Saudi Arabia as a bridge across the logistics network, he added.

He said logistics crises extend beyond maritime routes, with air freight and multimodal links gaining importance as risks rise.

Saudi airports, with growing cargo capacity and expanding infrastructure, have contributed to that flexibility, he said.

Aviation market

Al-Jarba said several Gulf airlines have turned to Saudi airports, underscoring a shift; Riyadh is no longer just a large aviation market, but an operational platform supporting regional traffic when alternatives are needed.

He said the kingdom’s role during the crisis, combined with its competitive edge, has drawn the attention of global logistics firms.

That edge includes its geographic position linking continents, its dual coastlines on the Arabian Gulf and the Red Sea, and its advanced infrastructure spanning ports, transport networks, and pipelines.

Flexible government policies, including customs facilitation and faster procedures, have further strengthened its appeal, he said, adding that a clear strategy under Vision 2030 makes Saudi Arabia a reliable, scalable base for supply chain operations.



Arcapita, Hines to Explore Joint investments in GCC Industrial and Logistics Real Estate

Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat
Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat
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Arcapita, Hines to Explore Joint investments in GCC Industrial and Logistics Real Estate

Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat
Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat

Arcapita Group Holdings Limited, the global alternative investment firm, and Hines, one of the world’s largest real assets investment managers, announced on Wednesday a partnership to together explore the creation of an institutional-grade platform focused on industrial and logistics real estate assets across the Gulf Cooperation Council (GCC).

The platform would seek to combine Hines’ global real estate investment, development and operating standards with Arcapita’s regional investment, structuring and asset management expertise, supported by Lintara, Arcapita’s local operating platform, a joint statement said.

Through the partnership, the two companies would focus on jointly originating, structuring and executing investments across both development opportunities and stabilized income-producing assets, it added.

Arcapita is headquartered in Manama, Bahrain. It also operates from its offices in the United States, the United Kingdom, Saudi Arabia, the United Arab Emirates and Singapore.

Hines is based in Houston, Texas.

Martin Tan, Arcapita’s Chief Investment Officer, said: “This strategic partnership marks an important step in our approach to the GCC industrial and logistics opportunity. Market fundamentals across the region have reached a depth and maturity that support the case for a dedicated, institutional-scale platform rather than a transaction-led strategy.”

“As GCC countries continue to focus on supply chain resilience and national self-sufficiency, we see a compelling opportunity to help deliver modern logistics infrastructure at scale. By bringing together Arcapita’s long standing regional track record, sourcing and asset management capabilities with Hines’ globally recognized development expertise, the platform would be well positioned to pursue high-quality opportunities across the sector.”

As for Hines’ Global Head of Real Estate, Steve Luthman, he said that the GCC represents one of the most compelling logistics growth markets globally.

He welcomed “the opportunity to partner with Arcapita to explore the development of a structured, platform-led entry into a rapidly growing market, backed by deep local relationships and execution capability.”


Airlines Should Still Avoid Airspace Over Iran After Framework Deal, EU Agency Warns

 A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)
A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)
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Airlines Should Still Avoid Airspace Over Iran After Framework Deal, EU Agency Warns

 A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)
A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)

Airlines ‌should continue to avoid the airspace over Iran, Iraq and Lebanon and remain cautious across the region despite the framework deal between Washington and Tehran, because violations remained possible, the ‌EU aviation safety ‌agency EASA said.

EASA ‌said ⁠on Wednesday it ⁠was extending its conflict-zone advisory for the region until July 1.

Short-term violations of the US-Iran ceasefire remain possible, ⁠in particular in ‌and ‌around the Strait of ‌Hormuz and neighboring airspace, the ‌agency said.

The agency also flagged the fragile ceasefire between Israel and Hezbollah, creating ‌the potential for military activity impacting the airspace ⁠of ⁠Lebanon.


Al-Jadaan: Economic Resilience, Partnerships Are Key to Meeting Global Development Challenges

Saudi Finance Minister Mohammed Al-Jadaan addresses the OPEC Fund Development Forum in Vienna. (X)
Saudi Finance Minister Mohammed Al-Jadaan addresses the OPEC Fund Development Forum in Vienna. (X)
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Al-Jadaan: Economic Resilience, Partnerships Are Key to Meeting Global Development Challenges

Saudi Finance Minister Mohammed Al-Jadaan addresses the OPEC Fund Development Forum in Vienna. (X)
Saudi Finance Minister Mohammed Al-Jadaan addresses the OPEC Fund Development Forum in Vienna. (X)

Saudi Finance Minister Mohammed Al-Jadaan warned that the world is facing increasingly difficult economic conditions shaped by uncertainty, fragmentation, geopolitical conflicts, trade tensions, debt risks, and challenges related to energy security and broader security concerns, factors he said threaten to undermine global development goals.

Addressing the OPEC Fund Development Forum in Vienna, held to mark the 50th anniversary of the OPEC Fund for International Development (OFID), Al-Jadaan described the milestone as an opportunity not only to celebrate the institution’s achievements over the past half-century, but also to reflect on lessons learned and consider the challenges and opportunities that lie ahead.

Over the past five decades, the OPEC Fund has helped tackle some of the world’s most pressing development challenges, supporting sustainable development, economic growth, and prosperity while improving living standards in low- and middle-income countries, he noted. Its efforts have enabled millions to gain access to electricity, quality education, and clean energy solutions, while expanding economic opportunities and improving essential services.

Al-Jadaan outlined three priorities for preventing setbacks in global development progress.

The first is placing resilience at the center of development strategies. Rather than serving merely as a response to crises, resilience must become a long-term, proactive approach.

Building systems capable of withstanding shocks requires investment in infrastructure, energy, food security, healthcare, education, and institutional capacity, he argued. It also demands inclusive policies tailored to local needs that diversify sources of income, improve livelihoods, and stabilize fragile markets.

The second priority is strengthening partnerships. No country can confront development challenges alone, Al-Jadaan said, emphasizing the critical role of development finance institutions in mobilizing resources, sharing knowledge, and fostering innovation. The private sector, he added, remains essential for driving investment, creating jobs, and delivering practical solutions.

Greater cooperation among development partners can improve coordination, attract additional capital, and maximize development impact.

Turning to his third priority, Al-Jadaan stressed that trust and national ownership must remain at the heart of development efforts. Development financing is most effective when aligned with national priorities, responsive to local realities, and built on genuine partnerships.

Expanding the OPEC Fund’s activities and deepening cooperation with partner countries would help align financing strategies with national development plans, improve the efficiency of resource allocation, strengthen implementation, and deliver measurable results, he said.

Al-Jadaan also underscored the importance of candid feedback from development partners and their support for bold, long-term structural reforms that enhance resilience, growth, and prosperity.

Fifty years is not a limit to what can be achieved. It is the foundation on which we build, he stated. He added that stronger partnerships and shared commitments will help safeguard the gains of the past five decades and advance sustainable development in the decades ahead.