•Middle East, North Africa, Turkey pool $872bn investments
The Group Chief Executive Officer of HSBC, the London-headquartered global banking and financial services firm, Georges Elhedery, has stated that the Strait of Hormuz, one of the world’s most important routes for transporting oil and gas, could lose much of its importance within five years as Gulf countries invest in alternative pipelines and export routes.
Elhedery said the Iran war had exposed the risks of depending heavily on the narrow waterway, prompting countries in the Gulf to invest in new infrastructure to move energy supplies to international markets without relying entirely on the strait.
Speaking at the HSBC Future Forum in Dubai on Tuesday and reported by Reuters, he expressed confidence that the region could recover from the conflict and continue growing through increased investment.
“We do see this region being able to recover and then continue growing. It will mean a lot of investment,” he said.
He added: “Of course, we do wish and hope to see a resolution to the conflict … But Hormuz, probably in five years’ time, may become redundant.”
The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, previously handled about one-fifth of global oil and liquefied natural gas trade, making it a critical route for energy supplies worldwide.
Disruptions to shipping through the strait have heightened concerns about the vulnerability of global energy supplies and the economic consequences of conflicts in the Middle East.
Gulf countries are now directing resources towards pipelines, ports and other transport facilities that could allow oil producers to reach international markets through alternative routes.
According to an HSBC report released on Monday, the Middle East, North Africa and Turkey have $872 billion worth of individual project packages on offer, forming part of a wider $1.4 trillion pipeline of planned infrastructure projects yet to be awarded.
The investments are expected to support economic activity and strengthen the region’s ability to withstand future disruptions.
Despite the conflict, business leaders and institutional investors continue to view the Gulf as an attractive investment destination.
An HSBC survey of more than 1,600 business leaders and about 820 institutional investors found continued interest in the region.
However, the economic outlook remains challenging.
The World Bank last week forecast that the Middle East, North Africa and Pakistan region would contract by 1.3 per cent in 2026, following growth of 3.3 per cent in 2025, largely due to the impact of the war. It expects a strong but uneven recovery in 2027.
Meanwhile, Saudi Arabia has postponed its flagship investment conference, which was scheduled for next week, until 2027 following deadly strikes in Riyadh by Yemen’s Iran-backed Houthi forces.
Elhedery was among the global financial leaders expected to attend the event.
The proposed investment in alternative energy routes signals a major shift in the Gulf’s approach to protecting oil and gas exports, as governments seek to reduce their dependence on a waterway whose disruption can affect energy markets and economies around the world.
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