Hormuz could be 'redundant' in five years, replaced by new routes, HSBC CEO says
HSBC•HSBC Group Chief Executive Georges Elhedery said investment in alternative Gulf logistics routes could make the Strait of Hormuz “redundant” in five years. HSBC said the Middle East, North Africa and Turkey have $872 billion in individual project packages within a $1.4 trillion planned and unawarded infrastructure pipeline.
1. Alternative routes planned
Investment in alternative logistics routes in the Gulf could make the Strait of Hormuz “redundant” in five years, HSBC Group Chief Executive Georges Elhedery said. The conflict has highlighted reliance on the waterway, which previously carried a fifth of global oil and liquefied natural gas trade. Elhedery said Gulf nations are directing resources toward energy pipelines to ports and that the region can recover and continue growing, though he said he hopes for a resolution to the conflict.
2. Regional investment outlook
HSBC said the Middle East, North Africa and Turkey are offering $872 billion in individual project packages, part of a $1.4 trillion planned and unawarded infrastructure pipeline. A recent HSBC survey of more than 1,600 business leaders and around 820 global institutional investors found they still considered the Gulf an attractive investment hub. The World Bank forecast a 1.3% contraction this year in the Middle East, North Africa and Pakistan region, followed by a strong but uneven rebound in 2027.
