Will war snuff out the Gulf’s global business ambitions?

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Companies far and wide are feeling the effects of the conflict

to be the new Middle East: a quieter, neutral entrepot where Arabs and Jews, Shia Iranians and Sunni Arabs, Americans, Chinese and even Russians could all rub along in the common pursuit of profit.

A.P. Moller-Maersk, the world’s second-biggest container-shipping company, has suspended port calls in Saudi Arabia and Oman, and rerouted ships around Africa, adding two or three weeks to transit times between Asia and Europe. Overall, ships are making 65% fewer stops in Jordan and 40% fewer in Saudi Arabia than they were last October.

Multinational businesses are feeling indirect effects of the fighting, too. In Israel, where more than 400 multinational firms have offices, executives worry about employees being called up for reserve duty. Progressive pro-Palestinian tech workers in America are pushing Google to drop a $1.2bn cloud-computing project in Israel. The conflict has contributed to slowing revenue growth at Snap.

 

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