Kuwait-Gulf Railway Link Key to Securing Supplies, Preventing Oil Export Disruptions

KUWAIT CITY, June 18: Despite the cessation of the US-Israeli war against Iran, the global economy continues to suffer its repercussions, including persistently high inflation and rising energy and food prices resulting from supply chain disruptions. Economic expert Qais Al-Ghanim outlined three main paths to avoid any future economic crises should the US-Israeli war against Iran recur. In the first path, Al-Ghanim called for activating all means to facilitate transportation between Kuwait and other Gulf states through railway connections. He affirmed that this step would inevitably revitalize the economic and commercial situation among Gulf countries, especially as Saudi Arabia is moving towards linking its railway network with Turkiye, passing through Dammam, Riyadh, Makkah, and Madinah, then through Jordan and Syria, until it reaches Istanbul.

Al-Ghanim indicated that the railway project currently underway will significantly boost trade among these countries, particularly as the closure of the Strait of Hormuz has sharply increased the cost of transporting goods, which has ultimately affected consumers. In the second path, Al-Ghanim emphasized the need to increase the number of ports in Kuwait and the Gulf states to mitigate the effects of a future closure of the Strait of Hormuz. He said the solution lies in relying on other Gulf ports, especially since the region overlooks the Arabian Gulf, the Arabian Sea, and the Red Sea, and can reach the Mediterranean Sea via Egypt. Al-Ghanim stressed that the third path focuses on connecting Kuwaiti oil pipelines to Saudi oil pipelines, bypassing the Strait of Hormuz, which is affected by geopolitical crises. He pointed to the efforts of the Kuwait Petroleum Corporation (KPC) in establishing several Kuwaiti oil storage facilities in Asian countries that import Kuwaiti oil. He indicated that while the idea is sound, it is a temporary, not a permanent, solution, emphasizing the need to take all measures to prevent any future disruptions to Kuwaiti oil exports.

Meanwhile, the UN Assistant Secretary-General told international newspapers that the economic losses for Middle Eastern countries due to the war between the US, Israel, and Iran amount to approximately $186 billion per month. He added that the Gulf states alone lose about $168 billion per month as a result of the closure of the Strait of Hormuz. According to a World Bank Group report, rising inflationary pressures, higher energy prices, and tighter monetary policies resulting from a potential war between the US, Israel, and Iran are pushing global growth to low levels and are expected to reduce the global growth rate in 2026 to 2.5 percent, compared to approximately 2.9 percent in 2025. A partial recovery to 2.8 percent is projected for 2027, but this would still be below the average of the previous decade.

By Najeh Bilal Al-Seyassah/Arab Times Staff