Neom Port finds new purpose during Hormuz disruptions

Neom Port proves useful despite gigaproject scaleback

It looks like Saudi Arabia is recasting its embryonic Port of Neom into a trade hub, linking the Gulf with Europe and Africa to reduce reliance on the Strait of Hormuz after Iranian disruptions, according to the Financial Times. The port — initially built to move construction material to the now scaled-back Neom project — is reportedly fully operational, with a 1.5 mn TEU capacity, and is handling rising cargo flows to help reroute trade away from the strait. It’s part of a gradual westward shift in the logistics center, supported by growing investment in ports and logistics along the Red Sea.

Despite the wider Neom gigaproject being scaled back, its infrastructure is being used, with Sage Institute for Foreign Affairs’ Elana DeLozier noting that Neom “was probably not originally about hedging against threats to the Hormuz, but that could theoretically become more of a focus.”

Limited secondary infrastructure, however, continues to weigh on the shift, including the lack of a direct Red Sea rail link, capacity constraints at Yanbu Port, and delays to the Riyadh-Jeddah landbridge rail project (now expected by 2034), according to the salmon-colored paper.

My AI is smarter than yours

The AI competition between Abu Dhabi and Riyadh is heating up. Abu Dhabi’s Technology Innovation Institute sold cryptographic AI tech to US-based Opaque in a deal that also gave TII an equity stake in the buyer. Meanwhile, Humain said it was expanding its partnership with AWS to include Humain One, an enterprise software platform for building, deploying, and governing autonomous AI agents. It piggybacks on the upcoming AWS Saudi Region — sovereign-by-design for regulated industries in the Kingdom. It’s part of a plan, announced a year ago this month, that will see Saudi invest USD 5 bn in AI infrastructure and training.

Chinese player to set up auto assembly plant in Oman

China’s Spruce Group is planning to set up a vehicles assembly plan in Oman’s Khazaen Economic City, Muscat Daily reports. An OMR 5 mn (USD 13 mn) agreement was signed for the first phase of the project, which includes a labor localization component that will see the Chinese company train 20 Omani nationals. The OMR 20 mn (USD 52 mn) project has an overall investment ticket of OMR 20 mn, targets an output of 3.2k vehicles once fully completed with the goal of exporting to African and the Middle Eastern markets. No timeline or further details on what type of vehicles were disclosed.

And another one for Tunisia

Chinese precision mechatronics systems manufacturer Taikang Electronics is setting up a TND 40 mn (USD 13.7 mn) industrial facility in Tunisia and has signed an agreement to acquire land for the facility. Construction on the factory will begin “soon,” Tunisia’s TAP news outlet said.