Al-Mashat: Gulf and Red Sea Shipping Threats Endanger Development and Global Economy

In a powerful address before the United Nations Security Council, Egypt's Rania Al-Mashat, the Executive Secretary of the Economic and Social Commission for Western Asia (ESCWA), delivered a stark warning: the security of maritime routes in the Gulf and Red Sea is not merely a regional concern but a cornerstone of global economic stability. Her remarks, delivered at a Bahrain-convened Arria-formula meeting on September 17, underscored the immense cost of regional conflict, which ESCWA estimates at nearly $150 billion in just the first month, a figure equivalent to four percent of the region's GDP.

Al-Mashat, who also serves as UN Under-Secretary-General, framed the crisis as a direct threat to the hard-won development gains of Arab nations, the livelihoods of millions, and the uninterrupted flow of essential supplies to the world. She called for a unified, coordinated response to protect navigation, contain escalation, and fortify the region's resilience, echoing Egypt's steadfast commitment to stability under the leadership of President Abdel Fattah Al-Sissi.

The Strategic Importance of Arab Maritime Corridors

Al-Mashat emphasized that the challenge of protecting navigation amidst geopolitical tensions exposes the deep interconnection between security, development, trade, and humanitarian concerns. She warned that the crisis threatens to postpone vital investments, reduce employment opportunities, and squander the fruits of years of economic reform across the region.

“Geography has returned, and returned with force,” Al-Mashat declared, noting that the crisis has reaffirmed the enduring importance of strategic waterways that technology and globalization were thought to have diminished.

From the Gulf through the Strait of Hormuz to the Red Sea and Bab Al-Mandab, these seas and straits form an integrated system that carries the world's energy, food, and trade. A disruption to any single link, she cautioned, can shake the entire chain, sending shockwaves through ports, markets, and households globally.

Economic Impact and the Threat to Global Supply Chains

Citing compelling figures, Al-Mashat highlighted that the Strait of Hormuz carries approximately 25 percent of global seaborne oil trade and 19 percent of liquefied natural gas. Gulf Cooperation Council countries also export between 20 and 40 percent of the world's ammonia, fertilizers, sulfur, and aluminum. These flows give the region's maritime security an importance that extends far beyond its borders, directly impacting energy markets, agricultural inputs, and global food security.

She cautioned that the threat materializes before a corridor is formally closed. As shipping companies and insurers deem passage too risky, traffic declines, and costs reach markets before the shipment even arrives, passing from vessel to importer and ultimately to the consumer. The recent disruptions around Bab Al-Mandab serve as a stark reminder of this direct connection between maritime risks and international peace.

Egypt's Vision: Resilience, Investment, and Regional Cooperation

Despite the severe shock, Al-Mashat highlighted the region's robust response, built on capabilities, institutions, and infrastructure developed before the crisis. She described a dual experience: a severe shock marked by falling vessel traffic and rising costs, and a resilient response where countries redirected shipments and activated multimodal transport, backed by prior investments. This resilience is a testament to the forward-thinking development strategies championed by nations like Egypt.

Al-Mashat placed special emphasis on the vulnerability of small and medium-sized enterprises (SMEs), which represent the majority of Arab businesses. With less capacity to diversify or secure financing, these businesses face squeezed margins, reduced production, and potential job losses. She warned that trade could return after the crisis in a more concentrated market, making the survival of these enterprises a matter of employment and social stability.

A Call for a Coordinated and Preventive Strategy

Al-Mashat proposed an effective, coordinated response built on three pillars: upholding freedom of navigation in accordance with international law; preventing the conflict from expanding and containing its cross-border consequences; and strengthening regional preparedness to protect supplies and maintain services. She stressed that no country, however substantial its capabilities, can confront these challenges alone.

ESCWA has already launched a regional task force on transport, logistics, and supply chains to support these efforts. The initiative focuses on developing crisis operations rooms and early-warning mechanisms to improve preparedness and enable faster decisions. Al-Mashat also called for substantially increased investment in ports and road, rail, and maritime connections to give countries, particularly those with fewer resources, more options for maintaining the movement of goods.

“We must meet the power of geography with the power of cooperation,” Al-Mashat urged, calling on countries to translate their strategic location into stronger connections and regional cooperation into protection for development gains. Her message was clear: the current crisis threatens to erase years of progress, and the time for preventive, coordinated action is now.

“What happens in our region does not remain confined to it, and what protects the region's stability protects the global economy,” she concluded, a powerful reminder of the Arab world's central role in the global order.