Gulf nations accelerate infrastructure spending to circumvent strategic maritime chokepoint

Persian Gulf nations are accelerating multi-billion dollar infrastructure investments in bypass pipelines, rail connections and western port terminals as persistent conflict with Iran and near-total blockages along the Strait of Hormuz force a fundamental overhaul of regional supply chain logistics. To insulate their economies against the chokepoint’s disruption—which historically carried 20% of global oil flows—Saudi Arabia is fast-tracking capacity expansions of its East-West crude pipeline to Red Sea ports, while the UAE’s DP World and AD Ports are prioritising terminal expansions at Fujairah and inland container hubs outside the Persian Gulf. Additionally, regional energy entities like Kuwait Petroleum Corp are pursuing cross-border pipeline interconnections with neighbouring states, alongside broader regional initiatives like a proposed Turkey-Saudi railway link, as sovereign wealth funds deploy capital to secure long-term maritime and energy bypass routes, according to a report.

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