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The UAE and Saudi Arabia, the Middle East region's two largest economies, are boosting trade connectivity to help move cargo faster amid disruption to supplies as a result of the Iran war.
Saudi Ports Authority, better known as Mawani, and the Sharjah logistics firm Gulftainer are co-ordinating on the project. Under the partnership, there will be direct connectivity between Sharjah and the city of Dammam in eastern Saudi Arabia involving sea and land transport to improve “cargo flow efficiency and reduce transit time”, Mawani said in a post on X.
It involves integration of ports from the two countries, including Khorfakkan Commercial Terminal on the east coast of the UAE, which bypasses the Strait of Hormuz, as well as inland logistics hubs such as Sajaa dry port in Sharjah.
“By leveraging Khorfakkan Inland Corridor – Khorfakkan Commercial Terminal, Sajaa Dry Port, and integrated inland and land-sea corridors, we enable direct, reliable transport linking the UAE to key Saudi market, Dammam,” Gulftainer said in a post on LinkedIn.
It is not known what kind of goods will be transported between Damman and Sharjah, or the total volumes per annum. The new corridor is significant as the Strait of Hormuz remains effectively closed for shipping traffic as Iran attacks vessels transiting through the vital waterway between Iran and Oman.
On Monday, Iran also threatened to lay sea mines across the Gulf if its southern coast and islands are attacked by the US and Israel, which could further hinder trade flows in the Gulf region.
Also on Monday, US President Donald Trump said military strikes on Iran's energy infrastructure have been postponed for five days following talks with Tehran.
The surprise announcement was published on Truth Social hours before the end of the 48-hour ultimatum that Mr Trump gave Iran to “fully open” the Strait of Hormuz or face attacks against its power plants, threats Tehran has vowed to retaliate against.
The Strait of Hormuz is vital for Gulf countries as most of their goods and oil pass through it, supporting their economic growth. The new corridor is expected to help boost supply chain resilience and improve market access for both countries.
