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Saudi Arabia, UAE and Oman Activate New Cargo Routes to Counter Strait of Hormuz Risks

Hormuz

Amid rising geopolitical tensions in the Gulf region, countries in the area have begun activating alternative logistics corridors to prevent potential disruptions in the Strait of Hormuz, one of the world’s most critical maritime trade chokepoints.

Saudi Arabia, the United Arab Emirates and Oman are reorganizing cargo flows through new land, rail and port connections to ensure that regional trade continues without interruption. These measures effectively create alternative cargo routes to mitigate risks related to the Strait of Hormuz.

In Saudi Arabia, a new logistics corridor program launched by the Saudi Ports Authority (Mawani) is linking Red Sea ports with Gulf markets. Jeddah Islamic Port, King Abdullah Port, the Yanbu ports, NEOM Port and Jazan ports have been positioned as key hubs within the new system. Containers arriving at these ports are transported by road to markets such as Kuwait, Bahrain, Qatar, the UAE and Oman, reducing trade dependence on the Strait of Hormuz.

UAE Identifies Alternative Routes to Hormuz

The United Arab Emirates is implementing a similar strategy. Part of the cargo traffic is being redirected to east-coast ports on the Gulf of Oman, including Fujairah and Khor Fakkan. Cargo arriving at these ports is then transported by road by DP World to Jebel Ali Port and other logistics centers.

At the same time, the national rail network operated by Etihad Rail has become an important part of the supply chain. Over the past nine days, more than 100 train trips have transported approximately 459,000 tonnes of cargo and nearly 8,000 containers.

Oman, meanwhile, is positioning the ports of Sohar, Duqm and Salalah as regional alternative gateways. The government has introduced new measures to accelerate customs and logistics processes, while facilitating transit operations through the Bayan electronic customs system.

Gulf Countries Handle a Significant Share of Cross-Border E-Commerce Shipments

These developments are not only critical for energy and industrial supply chains but also for global e-commerce logistics. As a major trade hub between Europe and Asia, Gulf countries handle a significant share of cross-border e-commerce shipments.

With the development of logistics corridors that bypass the Strait of Hormuz, e-commerce companies can maintain more secure and uninterrupted supply chains, particularly for electronics, fashion and consumer goods that require fast delivery.

According to experts, the new logistics infrastructure being established in the Gulf will not only serve as a safeguard during periods of crisis but will also strengthen the region’s strategic role in global trade and e-commerce logistics in the long term.

UAE Leads the MENA Startup Ecosystem: $162.8 Million Investment in February

Startup

The startup ecosystem in the Middle East and North Africa (MENA) received a total of $326.6 million in investment in February 2026. According to the latest report published by Wamda, although there was a slowdown in investment activity compared to the beginning of the year, venture capital activity in the region continues to remain strong.

While 62 investment deals took place in February, nearly half of the investment went to startups based in the United Arab Emirates (UAE). In the UAE, 23 startups raised a total of $162.8 million, maintaining the country’s position as the most active startup hub in the region.

The UAE was followed by Saudi Arabia, where 25 startups raised a total of $87.7 million in investment. Egypt ranked third with $64 million across 6 investment rounds. A large portion of the investment volume in Egypt was driven by a single late-stage funding round.

Fintech Startups Lead

From a sectoral perspective, fintech startups maintained their leadership. Fintech companies in the region raised a total of $94.7 million across 14 funding rounds. According to experts, the strong performance of fintech is closely related to the development of digital payment infrastructure in the region, the digitization of financial services, and the growth of lending platforms.

Following fintech, the e-commerce sector once again became one of the top sectors receiving investment. In particular, Breadfast’s $50 million investment pushed the sector’s total funding to $52 million. Deeptech startups ranked third, attracting $51 million in funding across only two investment rounds.

Investment Rounds Focused on Early-Stage Startups

Another notable development in February was that investment rounds were largely directed toward early-stage startups. A total of 49 early-stage startups in the region raised $136.4 million in investment. In contrast, the absence of mega funding rounds seen earlier in the year led to a decline in the overall investment volume for the month.

The report also highlighted that investor interest was largely concentrated on B2B startups. B2B-focused startups attracted $137 million across 38 deals, while B2C startups raised $62 million in funding.

Meanwhile, the report also revealed that gender inequality in startup funding in the region continues. In February, female-founded startups did not receive any investment, while only three startups with mixed-gender founding teams raised $14 million in funding.

The MENA Startup Ecosystem Will Continue to Grow

According to experts, the temporary slowdown in investment volume does not mean that the market is weakening. It is noted that several regional venture capital funds created new investment vehicles at the end of 2025, leaving a significant amount of available capital (dry powder) in the market. This indicates that the MENA startup ecosystem will continue to grow in the long term.