Saudi Arabia accelerates logistics and food spending amid Iran war
Updated
Updated · Bloomberg · May 7
Saudi Arabia accelerates logistics and food spending amid Iran war
11 articles · Updated · Bloomberg · May 7
In the first quarter, the kingdom brought forward infrastructure outlays and food imports, while expanding western Red Sea seaport capacity, a finance ministry spokesperson said.
The measures were aimed at easing disruption from the Strait of Hormuz closure and strengthening supply chains for Saudi Arabia and other Gulf Cooperation Council states.
The extra spending helped cushion wartime trade shocks but widened Saudi Arabia's budget deficit, underscoring the economic fallout from the regional conflict.
As the Iran war sparks a food crisis, will new Red Sea routes be enough to feed the world?
Will the Hormuz crisis permanently redraw global trade maps, crowning a new logistics king in the Middle East?