{"id":113452,"date":"2026-03-10T00:00:00","date_gmt":"2026-03-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/?p=113452"},"modified":"2026-03-10T03:05:36","modified_gmt":"2026-03-10T03:05:36","slug":"could-hormuzs-closure-disrupt-the-uaes-food-supply","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2026\/03\/10\/could-hormuzs-closure-disrupt-the-uaes-food-supply\/","title":{"rendered":"Could Hormuz\u2019s closure disrupt the UAE\u2019s food supply?"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Yes \u2014<\/strong><strong> Hormuz matters for way more than oil and gas: <\/strong>A big chunk of the Gulf region\u2019s food imports goes through the Strait of Hormuz \u2014 around 70%, Neil Quilliam, associate fellow at think tank Chatham House, was quoted as saying by <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/gulf-food-strategy-tested-iran-war-snarls-shipping-routes-2026-03-05\/\" style=\"\" rel=\"noopener\">Reuters<\/a>. And when it comes to the region\u2019s agriculture sector, roughly <a target=\"_blank\" href=\"https:\/\/www.kpler.com\/blog\/global-fertiliser-dependency-on-gulf-exports-what-if-hormuz-is-disrupted\" style=\"\" rel=\"noopener\">o<\/a><a target=\"_blank\" href=\"https:\/\/www.kpler.com\/blog\/global-fertiliser-dependency-on-gulf-exports-what-if-hormuz-is-disrupted\" style=\"\" rel=\"noopener\">ne-third<\/a> of global fertilizer shipments pass through the strait. Nitrogen fertilizers, which are used for half of global food production, mostly come from the Gulf and move through the strait.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>By the numbers: <\/strong>Around 55-60 mn tons of urea are shipped by sea annually, with the Middle East accounting for some <a target=\"_blank\" href=\"https:\/\/gpcachem.org\/2024\/04\/26\/product-in-focus-urea\/\" style=\"\" rel=\"noopener\">40-50%<\/a> of that volume. Iran <a target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/rrapier\/2026\/03\/01\/beyond-oil-the-strait-of-hormuz-and-the-global-food-risk\/\" style=\"\" rel=\"noopener\">exports<\/a> roughly 5 mn tons, while Saudi Arabia contributes around 4-5 mn tons through producers like Sabic. Qatar accounts for roughly <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-03-02\/iran-war-snarls-key-global-hub-for-fertilizer-supplies\" style=\"\" rel=\"noopener\">11%<\/a> of global urea exports, according to Bloomberg Intelligence analyst Alexis Maxwell. The country exports some <a target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/rrapier\/2026\/03\/01\/beyond-oil-the-strait-of-hormuz-and-the-global-food-risk\/\" style=\"\" rel=\"noopener\">5.5-6 mn<\/a> tons of urea and ammonia annually from its Qafco complex.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>With shipping through the passageway disrupted,<\/strong><strong> fertilizer markets are already repricing the risk<\/strong> \u2014 raising the prospect of higher crop input costs and, eventually, food prices. The rise in oil and gas prices also amplifies the pressure, since natgas is the main input for nitrogen fertilizers. \u201cNatural gas\u2019 key role as a fertilizer input could hit agricultural producers, impacting food prices,\u201d MENA Director at Horizon Engage Andrew G. Farrand tells EnterpriseAM.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Market reax: <\/strong>Prices for granular urea jumped <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-03-02\/iran-war-snarls-key-global-hub-for-fertilizer-supplies\" style=\"\" rel=\"noopener\">USD 60<\/a> per ton after the effective closure of the strait. In the US Gulf, spot for urea jumped USD 60-80 from last week, with traders warning that increases could follow if disruptions persist. Buyers are already eyeing other markets like North Africa and Southeast Asia for supplies, Bloomberg Green Markets reported.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>For import-dependent Gulf economies like ours<\/strong>, the question is not whether fertilizer markets move \u2014 but how quickly those shocks filter into the region\u2019s food supply chain. The UAE imports between 80 and 90% of its food supply, and a large portion of imports comes from Iran itself, which has <a target=\"_blank\" href=\"https:\/\/in-food.co.uk\/iran-orders-indefinite-ban-on-food-exports\/\" style=\"\" rel=\"noopener\">banned<\/a> the export of food and agricultural products indefinitely.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Officials have urged calm<\/strong>, with the Economy Ministry <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/03\/04\/attacks-continued-to-hit-the-uae-on-day-four-of-the-us-israel-iran-war-but-officials-urged-calm\/\" style=\"\" rel=\"noopener\">confirming<\/a> it has four to six months\u2019 worth of stockpiles of essential commodities on hand.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And retailers are already scrambling to reinforce food supply chains:<\/strong> UAE retailer Lulu Group <a target=\"_blank\" href=\"https:\/\/gulfnews.com\/business\/retail\/lulu-brings-fresh-food-to-uae-on-chartered-cargo-flights-to-secure-store-supplies-1.500466321\" style=\"\" rel=\"noopener\">began<\/a> chartering cargo flights to secure the food supply chain, with a freighter that carried around 80 tons of fruits and vegetables from India landing in Abu Dhabi. Additional shipments are being arranged.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Market players don\u2019t expect a major hit in the near term, but<\/strong><strong> the concern is whether the disruptions are prolonged. <\/strong>\u201cA huge portion of the region\u2019s food supply is imported into the UAE and re-exported out,\u201d Kurtz said. That logistics scale, combined with extensive cold-chain infrastructure, helps absorb short-term shocks.<\/p>\n<p class=\"tag-border-left\">What can be done? <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Alternative export routes \u2014 such as air freight or trucking corridors via friendly neighbors<\/strong><strong> \u2014 may offer limited relief<\/strong>, but they are slow and significantly more expensive. If disruption through Hormuz persists, the UAE\u2019s highly efficient import system can keep food flowing but at a higher cost.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The government also coordinates with and s<\/strong><strong>upports agricultural businesses in the country in terms of logistics<\/strong>, which helps offer support even in the case of a sustained disruption, Kurtz added.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Subsidies could come at some point:<\/strong> \u201cIt may be that \u2060governments choose to absorb some of that cost through subsidizing the food. And they've certainly done that in previous crises, Reuters quotes Justin Alexander, Gulf analyst at GlobalSource Partners and director at Khalij Economics, as saying.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">This could be local high-tech agribusinesses\u2019 time to shine, but bottlenecks remain<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Gulf growers carry several weeks \u2014 five to eight \u2014 of core inputs on hand<\/strong>, including fertilizers, helping cushion short disruptions, CEO of Pure Harvest Sky Kurtz tells EnterpriseAM. High-tech growers like Pure Harvest also use very little fertilizer as part of their precision farming methods, he explained.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Fertilizers may not even be the first agricultural bottleneck to bite:<\/strong> For Pure Harvest, specialty inputs such as pollinators and biological pest-control supplies can become harder to replace before fertilizer shortages become tight, Kurtz tells us. That means prolonged disruption can start weighing on yields through the wider agricultural input chain \u2014 not just through urea prices alone.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Looking ahead<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The UAE has a target to slash its reliance on imports for food supply to just 50% by 2050 <\/strong>and has several initiatives in place to grow <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2025\/12\/12\/legend-earmarks-aed-500-mn-to-expand-jafza-facility-m42-opens-hospital-in-bahrain\/\" style=\"\" rel=\"noopener\">climate-adaptive crops<\/a> and boost local output in areas like Ras Al Khaimah. It also encourages further innovation in the sector through initiatives like <a target=\"_blank\" href=\"https:\/\/www.gccbusinessnews.com\/edb-launches-agrix-accelerator\/\" style=\"\" rel=\"noopener\">the AGRIX Accelerator<\/a> and the <a target=\"_blank\" href=\"https:\/\/agrospectrumasia.com\/2023\/03\/14\/uae-launches-food-and-agriculture-entrepreneurs-programme.html\" style=\"\" rel=\"noopener\">Food and Agriculture Entrepreneurs Pro<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>\u201cLong term, if this results in the region rethinking its policy and its tolerance of imports<\/strong>, this could present [a prospect] for us to have higher quality and greater variety of products in the market, as well as true intangible food security, economic diversification gains, capital formation, and huge foreign direct investment,\u201d Kurtz said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The major challenge for players like these? Access to capital<\/strong>, Kurtz noted, highlighting the need for a development finance institution-style entity to provide low-cost, long-term infrastructure project financing. This would allow high-tech agribusinesses to scale and offer products at lower costs to compete with cheaper imports, he added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alternatives like rerouting through neighboring countries and air freight could help, but they\u2019re slower and more expensive<\/p>\n","protected":false},"author":1,"featured_media":113453,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2414],"tags":[7,1813,2413,2354],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-113452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-enterpriseam-uae","tag-oil-gas","tag-the-big-story-today","tag-trade-and-logistics","wpautop","entry"],"acf":{"mongo_id":"924dc72c-9df5-4597-9946-98adaabb2689","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/3\/523.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Is our food supply at risk?","related_issue":[113447],"teaser":"Alternatives like rerouting through neighboring countries and air freight could help, but they\u2019re slower and more expensive"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Could Hormuz\u2019s closure disrupt the UAE\u2019s food supply? 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