How does a new ship tell the story of Houthis undermining Saudi Red Sea ambitions?

A Map of the envisaged links among Gaza, Saudi, and Israel as part of the IMEC

The Houthi-led Yemeni maritime blockade in the Red Sea has had significant impacts on regional and global economies. This includes increased shipping costs and delays, which have weakened economic performance in many markets and reduced the financial profits of companies. In addition to these direct costs, there have been many indirect effects. One of the main indirect effects of the blockade has been the undermining of Saudi plans in the Red Sea.

As part of its economic diversification drive under Crown Prince Mohammed bin Salman’s Vision 2030, Saudi Arabia has sought to exploit the Red Sea’s resources, such as minerals and energy. In 2020, Saudi Arabia, Sudan, Djibouti, Somalia, Eritrea, Egypt, Yemen, and Jordan signed the charter of the Council of Arab and African Coastal States of the Red Sea and the Gulf of Aden. This new arrangement was part of Saudi efforts to organise the area and secure its planned investments, such as in subsea mineral extraction. Recently, Saudi Arabia launched a forum to discuss these ambitions, reviving a dream that has been around for over a decade. These minerals will fuel the growth of Saudi industrialisation and help elevate its economy within the global value chain as it pursues further investments in chipmaking and electric vehicles (EVs). Additionally, Saudi Arabia is keen to secure its shipping routes through the Red Sea. Saudi plans for the Red Sea are linked to the US-led IMEC and Israel’s vision to win the war in Gaza, which includes making the besieged strip part of the IMEC vision, turning Israel into a central trading hub in the region with direct links to Saudi EVs and minerals extraction industries.