HSBC Group Chief Executive Georges Elhedery has said Gulf countries could significantly reduce their reliance on the Strait of Hormuz within five years by developing alternative logistics routes.
Elhedery made the remarks on Tuesday at an event in Dubai, where he discussed the economic impact of the ongoing Iran conflict and the need for stronger regional supply networks.
He said investment in resilient alternative routes could help Gulf economies withstand disruptions linked to the conflict while strengthening their ability to maintain trade.
According to Elhedery, continued investment in alternative transportation networks could eventually make the Strait of Hormuz “redundant” as Gulf countries develop other channels for moving goods and commodities to international markets.
The HSBC chief also reaffirmed the bank’s commitment to the Gulf Cooperation Council, GCC, saying HSBC would continue to support the region despite the challenges created by the conflict.
“The bank’s commitment to the GCC region remained steadfast,” Elhedery said at the Dubai event.
The comments came during Elhedery’s second visit to the region since the conflict began, as governments and businesses assess its broader economic consequences and the risks posed by disruptions to major trade routes.
The Strait of Hormuz remains a vital global shipping route, particularly for energy supplies. Efforts to develop alternative logistics networks could therefore help Gulf countries strengthen trade resilience and reduce their exposure to disruptions along the strategic waterway.
Goodness Anunobi
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