Gulf States Increase Borrowing for Strategic Projects to Reduce Hormuz Reliance

Gulf countries are set to increase borrowing for multi-billion-dollar infrastructure projects. These initiatives aim to reduce reliance on the Strait of Hormuz as regional tensions, now in their sixth month, escalate risks to this vital energy passage. Saudi Arabia, Kuwait, the UAE, and Qatar are developing alternative oil and gas export routes. Plans include new ports on the Red Sea and Gulf of Oman, rehabilitating existing pipelines, and upgrading land transport networks. The goal is to ensure continuous supply flow, isolated from any potential Strait disruptions. Bond issuances from Gulf states hit a record $112 billion this year, an economic news agency reports. Additionally, regional debt management offices are in talks with banks and investors for further debt to fund these strategic projects, informed sources indicate.