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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.

Why the AI Sandbox Model Could Redefine Innovation in Emerging Economies?

A few days ago, while browsing through new releases from the World Economic Forum, a title caught my attention: “Shaping the AI Sandbox Ecosystem for the Intelligent Age.”  The phrase AI sandbox was intriguing enough to make me pause. I had heard it before in the context of fintech regulation and data privacy, but I had never seen it defined precisely or with such ambition. So, I read the report. And what I found was more than a policy proposal; it was a vision for how countries like India, and by extension many others across the Global South, could innovate without losing control. AI Sandbox

What is an AI Sandbox?

At its simplest, an AI sandbox is a safe testing ground. In this controlled environment, artificial intelligence models can be developed, trained, and validated with access to real-world data under regulatory supervision. It’s where innovation meets accountability. The European Union gave the concept formal legal status in its AI Act (2024), describing it as a space where developers can experiment freely within clear guardrails. The goal is to accelerate technological progress without allowing that progress to outpace public trust.

When I read the WEF’s August 2025 white paper, prepared with India’s Office of the Principal Scientific Adviser and BCG X, it was immediately clear why this idea matters now. AI has reached a stage where innovation alone is not enough. We need infrastructure for responsible innovation, and in this respect, India’s proposed sandbox ecosystem offers an excellent case study. AI Sandbox

The report positions India not as a follower but as a frontrunner of the intelligent age. It argues that the country’s vast digital public infrastructure, Aadhaar, UPI, and DigiLocker, can form the backbone for AI experimentation. Its start-up ecosystem is restless and inventive, its academic institutions are hungry for data-driven research, and its multilingual society provides an ideal setting to test the inclusiveness of language models. Yet these strengths reveal deep gaps, such as limited access to high-quality local datasets, high compute costs, and a shortage of standardized validation frameworks. The AI sandbox model is designed to close that gap as a bridge between the promise of technology and the discipline of governance.

Globally, this approach is already gaining traction. Norway uses an AI Regulatory Privacy Sandbox to guide companies through compliance while testing new systems. Malaysia’s National Technology and Innovation Sandbox grants limited regulatory flexibility to start-ups trying to scale. Singapore’s GenAI Evaluation Sandbox has become a reference point for assessing the safety and transparency of large language models. Even universities such as Harvard and Princeton have internal AI sandboxes giving researchers secure access to foundation models for experimentation. Reading through these examples in the WEF report, I realized that while their structures differ, their underlying philosophy is the same: Innovation without Isolation.

What makes the Indian model so interesting is its systemic design. The proposed framework has five interdependent layers: infrastructure, data, models, innovation, and governance. Each layer builds on the other: shared compute clusters make AI development affordable; multilingual datasets ensure cultural relevance; localized small language models strengthen autonomy; sector-specific pilots connect technology to social needs; and a governance layer, composed of regulators, industry leaders, and ethicists, keeps the entire system accountable. The report calls this approach “responsible innovation by design”. A phrase that should, in my view, become a guiding principle for every emerging market entering the AI era.

But the story doesn’t end with India. Reflecting on the report, I began to see its broader resonance. The same framework could reshape how innovation is managed across MENA, ASEAN, and Africa. In these regions, the challenge is not a lack of creativity but a lack of structural access to data, computing infrastructure, and standardised validation. The sandbox, if adopted wisely, could level that playing field. AI Sandbox

Imagine a pan-regional network of sandboxes — each focused on a priority sector and governed by shared ethical and regulatory principles. A healthcare sandbox in Riyadh could test diagnostic algorithms before they enter hospitals. An agritech sandbox in Nairobi could allow start-ups to experiment with AI-based yield prediction without risking farmers’ livelihoods. A language sandbox in Jakarta could train vernacular chatbots on secure local datasets. Each environment would become a laboratory and a classroom, generating technology and policy knowledge. AI Sandbox

I think the AI sandbox represents more than an innovation tool; it is a moral framework for technological maturity. It acknowledges that speed alone is no longer the measure of progress. In the intelligent age, leadership belongs to those who can test wisely, fail safely, and build trust before scale. That is the idea that the WEF report captures: Experimentation becomes a public service when governed.

For countries like India and regions such as the Gulf or Sub-Saharan Africa, this model offers an exit from the old dependency cycle. Instead of importing technology wholesale, they can cultivate it locally within structured, ethical boundaries. Instead of viewing regulation as an obstacle, they can treat it as a catalyst for innovation. Instead of fearing AI’s social impact, they can anticipate it by testing its boundaries before deployment.

In the Gulf, the “sandbox mentality” already exists, especially in fintech, but 2025 is the year it breaks out of that niche. Qatar has moved fastest with a public, AI-specific vehicle: the Ministry of Communications and Information Technology launched AI & XR Sandboxes at the TASMU Innovation Lab during Web Summit Qatar, followed by an open demo day in September to showcase early proofs-of-concept. That’s what real, state-backed experimentation looks like in practice. The WEF paper, notably, lists Qatar’s AI & XR Sandbox among the global exemplars.

Saudi Arabia is approaching the same problem through a sector lens. The National eLearning Center’s AI Sandbox in Digital Learning gives universities, ed-techs, and regulators a safe zone to test AI for education with governance baked in. The initiative is live on a gov.sa domain and has already been showcased as a national success story.

The UAE is the region’s laboratory. Two tracks are converging here. First, there’s policy-grade sandboxing: Dubai Future Foundation’s Sandbox Dubai is explicitly framed as a regulatory sandbox under the D33 agenda, with verticals like healthcare and a growing web of international partnerships. For example, Hamburg’s AI Center is already on board and even pilots with Amazon to test gig economy governance. Second, there’s the infrastructure surge: the UAE’s multibillion-dollar compute build-out, Stargate UAE, a planned 5-gigawatt AI campus spearheaded by G42 with U.S. tech partners, signals that sandboxing here won’t be starved of GPUs. The first 200MW tranche will come online in 2026, with Nvidia, OpenAI and others in the tent.

Where does Türkiye sit? Officially, Ankara has had regulatory sandboxes and testbeds in its playbook since the National Artificial Intelligence Strategy 2021–2025, to smooth development, testing, and commercialization. The strategic direction is clear, aligns with EU risk-based frameworks (under KVKK privacy law), and builds capacity toward general-purpose AI rules as the EU AI Act phases in. Türkiye is a fast follower on governance, with sandboxing mentioned in the national strategy but not yet institutionalised at the scale we see in Doha or Dubai. The opportunity is to translate that commitment into domain sandboxes in sectors where Türkiye has depth, such as manufacturing, logistics, and public-service chatbots in Turkish, using the WEF’s layered model as a template for agencies and municipalities.

In the coming years, we’ll see more governments adopt this logic, not just for AI but for every emerging technology, from quantum computing to bio-data analytics. The sandbox will become a diplomatic language as much as a technical one, shaping international collaboration through shared experimentation. AI Sandbox

When I first opened that WEF report, I expected a policy document. I found a roadmap for an innovation culture combining technological ambition and institutional humility. It reminded me that the question of our time is not how powerful AI can become, but how responsibly we can make it worthwhile.

And perhaps, in that answer, the sandbox will be our most intelligent invention yet.

Burak Yalım / Editor in-Chief