Maritime Alliances Propel Saudi Arabia Toward Building Global Logistics Influence

Containers assembled at a Saudi port (SPA)
Containers assembled at a Saudi port (SPA)
TT

Maritime Alliances Propel Saudi Arabia Toward Building Global Logistics Influence

Containers assembled at a Saudi port (SPA)
Containers assembled at a Saudi port (SPA)

In a short period, Saudi Arabia has moved into a phase of building global logistics influence through maritime alliances with major international companies. The latest step is the launch of a new shipping route linking the Kingdom with Europe, alongside 18 other maritime services currently in operation, supporting national exports, improving access to markets, and reinforcing the country’s position as a key logistics hub.

The Saudi Ports Authority (Mawani) announced on Saturday the addition of a new shipping service by MSC, the world’s largest container shipping company, named “Europe–Red Sea–Middle East,” to Jeddah Islamic Port and King Abdullah Port in Rabigh, as part of ongoing efforts to strengthen maritime connectivity between the Kingdom and global ports and to support import and export flows in cooperation with leading global shipping lines.

MSC said in a statement on its X platform that the new fast shipping service is designed to meet growing demand and provide reliable and efficient connections in a complex operating environment.

The new service links Jeddah Islamic Port with several major global ports, including Gdansk, Klaipeda, Bremerhaven, Antwerp, Valencia, Barcelona, Gioia Tauro, and Abu Qir, extending to King Abdullah Port, Jeddah, and Aqaba, with a capacity of up to 16,000 TEUs.

The authority also revealed on Sunday the launch of 18 maritime shipping services at present, supporting the growth of national exports, improving their efficient access to international markets, and strengthening the Kingdom’s position as a central logistics hub.

Strategic Shift

Specialists told Asharq Al-Awsat that the Kingdom is undergoing a strategic transformation that strengthens its position as a logistics hub linking three continents and supports the goals of Vision 2030 to position Saudi Arabia as a global logistics platform. They said this reflects cumulative investments in port infrastructure, digital transformation, technical integration, and partnerships with leading global shipping lines.

They added that linking the Kingdom with Europe reduces time and cost and enhances the global reach of Saudi products.

Sovereign Tool

Zaid Al-Jarba, an expert in digital transformation and logistics services, told Asharq Al-Awsat that amid rapid shifts in global supply chains, efficient logistics connectivity is no longer merely an operational advantage but a sovereign tool reshaping economic power balances between countries. He said the launch of the new maritime route to Europe, alongside the addition of 18 services in a short period, signals the Kingdom’s transition to an advanced stage in building its logistics influence.

He added that what distinguishes this step is not only the expansion in the number of routes, but the quality of operational integration across Saudi ports, describing an interconnected system that begins at Jeddah Islamic Port and King Abdullah Port and extends through King Abdulaziz Port in Dammam via feeder vessels, reflecting a unified logistics network rather than separate gateways.

He said the move supports Vision 2030 and the National Transport and Logistics Strategy, which aims to establish the Kingdom as a global logistics platform by improving logistics hub performance, upgrading infrastructure, and adopting modern transport systems.

Operational Capacity

Al-Jarba said recent figures, including the launch of 18 new maritime services within a short timeframe with a total capacity of 123,552 TEUs, reflect high operational capacity and flexibility in responding to global changes.

He noted that the presence of global companies such as MSC, Maersk, and CMA CGM within the operating ecosystem reflects international confidence in Saudi Arabia’s logistics environment, indicating that the sector has moved beyond efficiency improvements toward maximizing economic and competitive impact.

He added that improved maritime connectivity not only supports imports but also serves as a key enabler for national exports by reducing delivery times to European markets, improving reliability, and lowering logistics costs, thereby enhancing the competitiveness of Saudi goods, particularly in industrial, food, and petrochemical sectors.

He said developments in Saudi ports go beyond expanding shipping routes to reflect a broader strategic shift toward building an integrated, globally competitive logistics system, adding that the Kingdom is steadily advancing toward cementing its position as a global logistics hub and a key link in international supply chains.

Logistics Integration

Khaled AlGhamdi, a supply chain and logistics expert, told Asharq Al-Awsat that adding these services expands alternative options that integrate with other logistics modes, including land, rail, and air, as part of broader efforts to enhance integration across the transport and logistics sector through multiple initiatives and international partnerships aimed at reducing time, lowering costs, and boosting productivity.

He said the new Europe link in particular will significantly accelerate cargo movement in both directions, from King Abdulaziz Port in Dammam to Jeddah Islamic Port and King Abdullah Port, reflecting efforts to enhance sector integration through expanded services, improved efficiency, and greater reliability, further cementing the Kingdom’s position as a global hub linking three continents.

He added that since the launch of Vision 2030, Saudi Arabia has seen broad progress in transport and logistics, including the rollout of a national strategy and projects exceeding 280 billion riyals, contributing to the Kingdom’s rise to 17th place in the Logistics Performance Index, underscoring the scale of progress achieved.



IMF: Saudi Attacks Could Have Negative Spillover 'Everywhere'

IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
TT

IMF: Saudi Attacks Could Have Negative Spillover 'Everywhere'

IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)

International Monetary Fund head Kristalina Georgieva said Wednesday that recent attacks on Saudi Arabia could impact people "everywhere” as "the Saudi economy is important for the region and the world."

Given the Saudi economy’s importance, “these developments have potentially negative spillovers for everybody, everywhere," IMF managing director Georgieva said at a news conference during the Annual Meetings of the Fund and World Bank in Bangkok.

The warning comes at a time when energy flows and shipping activity in the region are under pressure, with supply disruptions potentially affecting energy and trade costs as well as economic activity, particularly in economies dependent on oil and gas imports.

The IMF’s forecasts, released on Tuesday, highlight the scale of the expected impact of the disruptions on the region’s economies. The IMF expects the economies of the Middle East and Central Asia to contract by 0.3 percent in 2026, followed by growth of 6.3 percent in 2027, a trajectory that reflects the pressures of the current crisis as well as the anticipated recovery as the disruptions ease and energy and trade flows are restored.

The expected repercussions vary across regional economies depending on their exposure to shipping disruptions and their ability to maintain exports. In its outlook for Saudi Arabia, the IMF raised its 2027 growth forecast to 7.9 percent, from 2.4 percent in July and 3.4 percent in April.

Meanwhile, it lowered its estimate for the economy’s contraction in 2026 to 3.3 percent, compared with 5 percent in its July update and 6.4 percent in April.

This trajectory reflects expectations that production and exports will regain momentum as shipping disruptions subside, although the speed and scale of the recovery will remain tied to developments in the security situation and the normalization of energy and trade flows.

The Saudi Ministry of Finance has projected stronger growth of 12.8 percent in 2027, according to the pre-budget statement.


Taiwan Says Will Invest Up to US$4.4 bn in Alaska Gas Project

A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
TT

Taiwan Says Will Invest Up to US$4.4 bn in Alaska Gas Project

A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)

Taiwan said Wednesday it will inject up to US$4.4 billion in the Alaska LNG project, after US President Donald Trump announced the island's investment in the to-be-built natural gas pipeline.

Taiwan imports nearly all of its energy supply and has sought to shore up Washington's support as China presses its claims of sovereignty over the island democracy.

"According to current plans, the cooperation will include the annual procurement of six million metric tons of Alaska LNG following production," the Ministry of Economic Affairs said in a statement.

It will also involve "participation in project development, with an estimated investment of up to US$4.4 billion," AFP quoted the ministry as saying.

"If the project progresses smoothly according to the planned timeline, it is expected to begin further supplementing domestic natural gas supplies as early as 2032," it added.

The statement came hours after Trump told a rally in Wasilla, Alaska, that Taiwan had agreed to buy 30 percent of the output from the pipeline over the next 20 year and also invest US$4.4 billion into the project.

Taiwan sources its LNG from multiple countries but the mix has changed dramatically this year after the start of the Middle East war when Iran claimed control of the Strait of Hormuz.


Saudi Arabia Drives September Surge in OPEC+ Output Despite Iran War Disruptions

An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS
An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS
TT

Saudi Arabia Drives September Surge in OPEC+ Output Despite Iran War Disruptions

An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS
An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS

OPEC+ crude output surged in September as Saudi Arabia ramped up production, despite continued disruption to oil shipments through the Strait of Hormuz caused by the Iran war, OPEC said in its monthly report on Tuesday.

The Organization of the Petroleum Exporting Countries raised its forecast for global oil demand growth in 2027 to 2.55 million barrels per day (bpd) from 2.36 million bpd, citing the need to replenish inventories depleted by war-related supply disruptions.

But it cut its demand growth forecast for this year for a sixth straight month, to 180,000 bpd from about 380,000 bpd in its August estimates.

OPEC+, which groups OPEC members and allies including Russia, pumped an average of 39.068 million bpd in September, up 903,000 bpd from 38.165 million bpd in August, the report showed.

Output has risen by about 1.36 million bpd since July, when it stood at 37.710 million bpd, according to the secondary sources OPEC uses to track production.

OPEC members drove the increase, raising output by about 920,000 bpd to 25.097 million bpd from 24.177 million bpd a month earlier. Production by participating non-OPEC countries fell by about 18,000 bpd.

Saudi Arabia leads surge

Saudi Arabia posted the alliance's largest production increase. Output climbed to 8.372 million bpd in September from 6.238 million bpd in August, a gain of more than 2 million bpd, according to figures the kingdom submitted to OPEC.

The increase comes as Saudi Arabia seeks to restore oil flows and strengthen the resilience of its exports against war-related disruptions. Aramco increased oil loadings at Gulf export terminals in September after an attack on the East-West pipeline disrupted shipments through the Red Sea.

Inventory rebuilding to support demand

OPEC expects global oil demand to rise by 2.55 million bpd in 2027 to average 108.3 million bpd, compared with 108.19 million bpd in last month's forecast.

The forecast assumes demand growth in 2026 will slow as currently expected, with the need to replenish depleted inventories supporting growth next year, OPEC said.

For 2026, the group expects demand growth of just 180,000 bpd. It also cut its fourth-quarter demand estimate to 107.73 million bpd from 107.85 million bpd in last month's report.

Demand in countries belonging to the Organisation for Economic Co-operation and Development is forecast to shrink by about 210,000 bpd this year, while demand in non-OECD economies is expected to grow by 390,000 bpd.

Oil supply from outside OPEC+ is forecast to grow by 640,000 bpd in 2026 and 620,000 bpd in 2027.

Russian output declines

Russian oil output fell by 38,000 bpd in September to 8.643 million bpd, the report showed, amid continued Ukrainian strikes on Russian energy infrastructure, including refineries.

Russian Deputy Prime Minister Alexander Novak said the country would trim oil production this year. Russia's Economy Ministry lowered its 2026 output forecast to a 17-year low amid the war with Ukraine.

Kazakhstan's production rose by 22,000 bpd in September to 1.851 million bpd, according to the OPEC report.