Middle East Ports’ Modernization
Ports are vital components of the global supply chain, particularly the Middle Eastern ports have long been crucial in global shipping trade and logistics, primarily due to their strategic location and vast energy resources.
The Middle East, with its strategic location connecting Asia, Europe, and Africa, has seen significant investments in port and logistics sectors to capitalize on its geographic advantage and encourage economic growth. These ports control access to significant bodies of water, such as the Mediterranean Sea, Red Sea, Persian Gulf, Arabian Sea, and Indian Ocean.
According to the World Trade Organization (WTO), the long-term outlook is positive projecting merchandise trade volume to grow by 3.3% in 2025, an increase from the annual growth of 2.7% in 2024.
Port projects are driven by global trade. The pipeline of upcoming port projects has a combined value of $533.9bn, in which the MENA region accounts $79.6bn projects, with 89.7% of the projects in the execution stage.
The sea ports in the Gulf region play an important role in supporting industries such as oil and gas, manufacturing, and facilitating international energy trade. As the region moves towards a more diversified energy mix, ports are playing a key role in handling imports of renewable energy products and materials.
Across the region, ports are undergoing significant development to meet the countries’ future requirements. NEOM in Saudi Arabia has invested more than $2bn in developing its port including terminals, warehouses, rail delivery, infrastructure and a sustainable energy network.
King Abdullah Port and Jeddah Islamic Port serve as significant gateways for marine trade to help the Kingdom achieve its ambitious economic diversification goals as in projects like Vision 2030.
The UAE is recognized as a global energy hub. Ports such as Jebel Ali Port and Khalifa Port play critical roles in the global marine economy, they are distinguished by world-class facilities to enable commerce and logistics activities. AD Ports Group, UAE has recently signed an agreement to develop a world-class clean petroleum storage facility in Khalifa Port, thus reinforcing its position as a key energy storage and trading hub in the region.
The Port of Fujairah in the UAE is the world’s third-biggest bunkering hub and is strategically important as it enables the UAE to bypass the Strait of Hormuz. The port recently took delivery of 80-meter-long blades for windmills and delivery of three 528-ton gas turbines.
The Port of Sohar in Oman integrated with Special Economic Zones to support more industrial growth. Duqm Port is strategically positioned in the Arabian Sea and is an alternative route to the Strait of Hormuz. It serves as the main Eastern and Western trade corridors.
Salalah Port in Oman exemplifies the impact of strategic investments and effective management. The port’s high-efficiency results from its advanced infrastructure, strategic geographic location, and the adoption of best practices in port operations.
These ports have secured high global rankings, demonstrating their operational effectiveness. They have adopted advanced technologies like artificial intelligence (AI) and automation, which has improved operational efficiency, reduced turnaround times, and minimized costs.
Looking ahead, the region’s ports will continue to play a critical role in fueling economic growth and prosperity.
Editor
