Saudi Arabia is positioning the port of NEOM as a strategic trade and logistics hub connecting the Gulf with Europe and Africa, as the kingdom seeks to reduce reliance on the Strait of Hormuz amid heightened regional security tensions.
The shift follows shipping disruptions linked to the US-Israeli conflict with Iran, which placed increased pressure on Gulf trade routes and maritime networks.
“As trade routes shift and regional dynamics evolve, Port of NEOM is emerging as a key gateway,” Neom’s social media team posted on X last week. “Strategically positioned on the Red Sea and fully operational, the port is already enabling faster, more connected trade.”
While Crown Prince Mohammed bin Salman’s wider NEOM gigaproject — including its proposed futuristic linear city — has been scaled back following major cost overruns, Saudi authorities are increasingly promoting the project’s port infrastructure as a strategic economic asset. The port handled approximately 2.2 million tonnes of cargo in 2024, accounting for around 2 per cent of Saudi imports.
Saudi Arabia has also redirected a significant share of its crude oil exports towards the Red Sea through the east-west pipeline built during the 1980s Iraq-Iran conflict. According to Kpler, exports from the western port of Yanbu increased roughly fourfold after February, reaching more than 29 million barrels per week in early April.
Saudi authorities are continuing long-term investment plans aimed at expanding western trade infrastructure and diversifying the economy beyond oil exports.
A delayed $27 billion “landbridge” railway linking Riyadh with Jeddah is now expected to be completed by 2034, while five new logistics corridors connecting Gulf and Red Sea ports were launched this month. Jeddah Islamic Port, the kingdom’s largest port by capacity, is also undergoing an $800 million expansion with DP World.
Analysts say the strategy reflects Saudi Arabia’s broader economic diversification agenda under Crown Prince Mohammed bin Salman, while reinforcing the kingdom’s ambition to develop the Red Sea coast into a major regional transport, energy and logistics corridor.
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