FT: Saudi Arabia positions NEOM port as Red Sea trade hub

Saudi Arabia is promoting the port at its flagship NEOM development as a strategic trade hub linking the Gulf with Europe and Africa, as regional tensions disrupt shipping through the Strait of Hormuz, the Financial Times reports.

The move reflects a broader effort by the kingdom to expand the role of its Red Sea coast in global trade, reducing reliance on routes vulnerable to disruption amid ongoing tensions involving Iran.

The shift comes after attacks on shipping earlier this year, which followed a U.S.-Israeli strike on Iran and contributed to disruptions in maritime traffic. The incidents have prompted Gulf states to reassess their dependence on the Strait of Hormuz, a key artery for global energy flows.

Against this backdrop, NEOM is highlighting the growing role of its port infrastructure.

“As trade routes shift and regional dynamics evolve, Port of NEOM is emerging as a key gateway,” the project said in a post on X. “Strategically positioned on the Red Sea and fully operational, the port is already enabling faster, more connected trade.”

While the port does not handle oil shipments, it is positioned as part of Saudi Arabia’s broader diversification strategy. According to available data, it handled about 2.2 million tonnes of cargo in 2024, accounting for roughly 2% of the kingdom’s imports.

NEOM, led by Crown Prince Mohammed bin Salman, has faced scrutiny after scaling back some of its most ambitious elements, including plans for a futuristic linear city, due to rising costs. However, analysts say its industrial and logistics components may gain importance in the current environment.

“Neom was probably not originally about hedging against threats to the Hormuz, but that could theoretically become more of a focus,” said Elana DeLozier, a Gulf expert and executive director of the Sage Institute for Foreign Affairs.

The project continues to advance other components, including Oxagon—an industrial zone initially envisioned as a partly floating city—as well as investments in data centres and advanced manufacturing.

By Sabina Mammadli