The Gulf’s playbook for tackling global supply chain challenges: GCC nations, with their strong focus on international trade and global imports, are adopting strategic approaches to mitigate the impact of supply chain disruptions and congestion to facilitate smoother trade flows, according to a recent World Economic Forum report. So, what’s in this cheat sheet?

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

#1- Greasing the trade wheels: Bahrain has signed an agreement with Saudi Arabia to fast-track trade and advance the development of the King Hamad Causeway, part of the broader GCC railway project. This initiative aims to link all Gulf states, enhancing intra-regional trade and improving movement. Bahrain is also set to open a new USD 240 mn US trade zone to serve as a gateway for manufacturing and logistics activities. The zone will offer exemptions from customs duties on imported raw materials. The UAE is also focused on multimodal transport solutions, such as the Etihad Rail project, to connect major hubs across the region. Kuwait has streamlined border trade by implementing a new electronic clearance system.

#2- Tech’ing the system: Saudi Arabia is making a USD 1 bn investment in high-tech greenhouses using smart tech to reduce irrigation water consumption by up to 60%. Bahrain has also embraced technologies like vertical farming and aqua farming to boost food production and increase reserves. This level of tech integration is crucial for shoring up food supply chains, especially for GCC countries, which import 85% of their food.

#3- Forging powerful relationships: Bahrain has led several public-private sector initiatives and strengthened trade relations with Saudi Arabia through the Takamul program, which recognizes Bahraini products as Saudi goods. The UAE and Australia signed a CEPA last September to streamline trade and eliminate tariffs on a wide range of goods and services. Regional efforts like the GPCA Supply Chain Conference offer a platform for knowledge-sharing and collaboration within the Arabian Gulf’s chemical supply chain and logistics sectors.

Tags: