Riyadh’s Strategy to Bypass Hormuz Risks

Saudi Arabia’s shift toward the Red Sea was not an emergency decision imposed by current conditions in the Strait of Hormuz. Rather, it is an extension of a long trajectory that began taking shape decades ago, according to experts who spoke to Alhurra.

Since the “Tanker War” during the Iran–Iraq War in the 1980s—when Gulf waters became a direct battleground targeting oil tankers—Riyadh began to recognize the fragility of relying entirely on the Strait of Hormuz as a single corridor for exports and imports.

During that period, Iraqi attacks targeted Iranian oil ports, and Tehran responded by striking Gulf oil tankers, revealing early on the scale of risks associated with this vital artery.

It appears that this experience remained present in the minds of Saudi decision-makers. In this context, the development of Duba Port and its transformation into “NEOM Port” came within what was called “Vision 2030,” launched by Saudi Arabia in 2016 to diversify income sources and reduce dependence on oil revenues.

The importance of NEOM increases given its location on the Red Sea, near major Egyptian ports such as Safaga and Sharm el-Sheikh, and close to the Suez Canal.

This location is expected to enhance its integration into regional and international shipping routes and enable trade corridors linking Europe to the Gulf region via the Red Sea and then overland transport, according to experts.

This orientation became clear recently with the announcement of a trade corridor linking Europe to Egypt and then to NEOM Port, before extending overland to Gulf countries. This reflects the project’s transition from conceptual planning to implementation.

The announcement came amid rising regional tensions and renewed concerns about the Strait of Hormuz, which remains a vital passage for energy supplies and trade. As the likelihood of navigation disruptions or restrictions increases, the importance of seeking more stable alternatives has grown.

NEOM Port and Vision 2030

Writer and political and military analyst Abdul Latif Al-Mulhim believes that current developments are pushing Saudi Arabia to accelerate the linkage between the Kingdom’s eastern and western regions through a network of roads and railways connecting Dammam and Riyadh to Jeddah via major cities. According to him, these projects fall within the priorities of Vision 2030, which is also evident in the development of NEOM Port to support other major ports such as Jeddah Islamic Port, Yanbu, and Jizan.

Al-Mulhim says that the modernity of NEOM Port gives it greater flexibility for expansion, whether in its capacity to handle different types of cargo or in its integration with air transport through its connection to a cargo airport, which accelerates the distribution of goods within the Kingdom, especially shipments requiring rapid delivery.

He adds that the risks associated with the Strait of Hormuz necessitate thinking about long-term solutions, including establishing inland logistics hubs in cities such as Al-Ahsa and Hail, connected by rail networks that transport goods to Red Sea ports and from there to global markets. He notes that the Kingdom has already begun benefiting from this route, even through currently available means such as overland transport from Jeddah Port to some Gulf countries.

He also highlights the importance of the East–West pipeline, which has enabled Saudi Arabia to maintain oil flows exceeding five million barrels per day even as risks surrounding the Strait of Hormuz increased, helping support global market stability.

However, recent studies indicate that Saudi Arabia and the UAE, among Gulf countries, can bypass Hormuz for oil exports—but only partially at the present time.

The Economic Feasibility of “NEOM” Port

On April 15, the official NEOM company account on the platform X published a post reading: “Europe – Egypt – NEOM – Gulf: Your fastest route,” accompanied by a map showing corridors extending from Europe through the Egyptian ports of Damietta and Safaga to NEOM Port, before branching overland toward Kuwait, Iraq, Bahrain, Qatar, the UAE, and the Sultanate of Oman.

Writer and political researcher Ahmed Al-Ibrahim believes that Saudi Arabia’s orientation toward the Red Sea predates recent developments and resulted from an early assessment of the risks of relying on a single outlet such as the Strait of Hormuz in a volatile regional and international environment. He says the Kingdom proceeded with developing parallel routes, including the East–West pipeline and Yanbu Port, providing it with greater maneuvering space during crises—despite the challenges inherent in the Red Sea itself, particularly in Bab el-Mandeb.

According to Al-Ibrahim, this approach reflects a policy of distributing risk across multiple routes. He adds that NEOM Port is not presented as a direct alternative to the Strait of Hormuz in oil trade, but rather as part of a broader strategy aimed at strengthening the Kingdom’s position as a logistics and industrial hub. He believes the port’s importance lies in expanding options for decision-makers and enhancing strategic flexibility, making it part of a long-term pillar in the equation of economic and political security.

For his part, Saudi economist Ibrahim Al-Malik believes that recent developments have highlighted the importance of having ready alternatives, especially with around 20 percent of global oil trade passing through the Strait of Hormuz—making any disruption there directly impactful on global markets.

He adds that the Kingdom did not benefit from the war in the traditional sense, but it benefited from its prior preparedness. Red Sea ports such as Jeddah Islamic Port and Yanbu ports helped maintain and redirect flows at a time when other countries faced bottlenecks. He notes that these ports, along with their expansion and integration with domestic transport networks, perform roles beyond export—serving regional markets and supporting global supply chains.

He said that transforming the Kingdom into a hub connecting three continents requires ports that are more integrated with transport networks, emphasizing that NEOM Port falls within the Red Sea system as a tool for diversifying routes—not as a standalone alternative to the Strait of Hormuz.

He added that feasibility lies in building a network comprising multiple ports, internal transport links, and logistics zones, allowing the redirection of trade flows when needed and reducing reliance on a single corridor.

The article is a translation of the original Arabic. 


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