The global navigation lanes are one of the main focal points, in passing the important goods from its production sites to retail outlets. That is why these lanes are exposed to many international conflicts, as many countries are trying to impose its control over them.
These lanes are an important tool, which countries seek to control, because of its great commercial importance. Strait of Hormuz is one of the most important navigation lanes in the world.
Economic and commercial importance of Hormuz Strait
Strait of Hormuz is one of the most important navigation lanes in the world, because of its major economic, trade and strategic importance for the Gulf countries in particular, and the Middle East countries in general. Also, it is the only marine port for some countries, such as Iraq, Kuwait, Bahrain, Qatar and UAE.
Strait of Hormuz located in the Persian Gulf, to separate between the Arabian Gulf, the Gulf of Oman, Arabian Sea and Indian Ocean. The Strait is surrounded by Iran from the north, and Oman from the south. It has a considerable economic and commercial importance, such as:
1-After discovering oil, the Strait of Hormuz started to have economic important, because of the large oil reserves located in the Arab region. Also, because of its importance in importing services and technology, where it became the connection between the largest repositories and markets around the world.
2- There are around 20 to 30 tankers passing through the Hormuz Strait every day, which are loaded with about 40% of the oil transported through sea worldwide.
3- The importance of the Strait of Hormuz, lies in being one of the most important shipping lanes, which facilitates trade between countries, such as Japan’s import of oil.
4-About 22% of the commodity in the world, passes through the Strait of Hormuz, such as grain, raw iron and cement.
5- Saudi Arabia exports 88% of its oil production, through the strait. While Iraq exports 98% of its oil production through it, and UAE around 99%.
Due to the large commercial and economic importance of the Strait, it has great strategic dimensions of the Arab countries. Thus closing it, could lead to the collapse of the economies of many countries.
Abu-Dhabi ports signs with Khalidia
Abu Dhabi ports have signed an agreement with Khalidia Shipping Company, with an amount of 80 million Dirhams. In order to create a logistics warehouse in trade and logistics area, in the Khalifa Industrial City.
This project is located in the Free Trade Area of the Khalifa Port. This region is a platform for companies seeking to expand into commercial, logistics and industrial sectors in the region. The project will be built on an area of about 47,081.4 square meters, which is scheduled to be completed during the second quarter of next year.
Improvement in Suez Canal revenues
The former Economic Advisor for Suez Canal “Dr. Abdeltawab Haggag” expected that the Suez Canal revenues would improve during this year, because of the improvement in the global trade and the rise in oil prices. Which will increase the cost of the cruise, the thing that will have a positive effect on the Suez Canal.
The President of “the Arab Association for Navigation”, Dr. Refaat Rashad said that: “Suez Canal revenues will improve in 2017, due to the rise of oil prices. Which is the main determinant for shipping companies to pass through the canal, to reduce the trip expenses through alternative roads.
It should be noted that during the month of November 2016, OPEC agreed to cut its oil production by about 1.2 million barrels per day. Starting from January 2017 until June, in order to reduce the glut of global supply, which caused a drop in prices over the past two years.