Economic Update

Published 19 Mar 2026


  • Disruption to maritime traffic through the Strait of Hormuz is accelerating demand for overland alternatives
  • Syria and Jordan have taken concrete steps to integrate their logistics infrastructure
  • A proposed high-speed rail corridor linking Saudi Arabia to Syria via Jordan could reduce Gulf food import vulnerability in the longer term
  • Syria’s reintegration into regional trade networks aligns with broader geo-economic initiatives connecting Asia and Europe

Supply chain disruptions have historically accelerated infrastructure investment and regional economic integration that might otherwise have taken decades to materialise. The current reduction in maritime traffic through the Strait of Hormuz is proving no exception. Roughly 20% of global oil trade passes through the Strait each day, alongside a significant share of non-oil commodities, including around 30% of the world’s maritime fertiliser supply. With maritime traffic now severely curtailed, attention is shifting to overland alternatives and the role that Syria and Jordan could play in providing them.

A pivot to overland alternatives

The case for diversifying Gulf supply chains beyond exclusive reliance on maritime routes has been building for some time. The six GCC states collectively source the vast majority of their food from abroad – around 85% by some estimates – and their combined annual food import bill runs into tens of billions of dollars. With most imports traditionally funnelled through a single maritime chokepoint, the incentive to develop land-based routes is considerable – and increasingly pressing. Alternative ports outside the Strait, including Jeddah and Yanbu on Saudi Arabia’s Red Sea coast, and Fujairah and Sohar in the UAE and Oman, offer a foundation. However, the development of resilient overland corridors through the Levant represents the most promising long-term opportunity.

Syria and Jordan move to integrate logistics networks

Concrete steps to realise that opportunity are already under way. In March 2026, senior customs and trade officials from Syria and Jordan met on the sidelines of a high-level Jordanian government visit to Damascus. Both sides agreed to facilitate the movement of Syrian trucks to the Port of Aqaba for loading and unloading operations, and the passage of Jordanian trucks to Syrian ports for the same purpose.

The agreement reflects broader strategic ambition. Both governments are seeking to leverage their geographic positions and deepen coordination to position Syria and Jordan as regional hubs for assembling and re-exporting goods to Gulf and European markets.

Practical measures are already taking shape. These include allowing Syrian trucks to access the Jordanian Red Sea port of Aqaba, implementing 24-hour border operations and eliminating trans-shipment requirements at the border. Syrian and Jordanian trucks will be permitted to cross each other’s territory directly – a friction-reducing step with immediate commercial implications for transit times and haulage costs.

The proposed Saudi-Syria rail corridor

Beyond road transport, a more ambitious infrastructure proposal has gained traction in regional policy discussions. The proposal envisions a high-speed railway linking northern Saudi Arabia to Syria through Jordan. The line would begin in the Saudi city of Arar and extend towards major Syrian cities at speeds exceeding 200 km/h and is designed to move fresh produce and commercial goods efficiently and create a new overland regional supply network.

Syria’s agricultural profile makes it well suited to this role. A combination of varied growing conditions, productive farmland and proximity to Gulf consumer markets means Syria could serve as a primary food sourcing base for the region. With a high-speed rail connection in place, domestically grown produce could reach Gulf cities within hours. The economic multiplier effects of such a corridor are significant. Associated downstream activity would include contract farming zones dedicated to export, sorting and packaging centres, cold storage facilities, quality control laboratories and modern railway loading platforms, generating employment and investment well beyond the transport sector.

Alignment with broader connectivity initiatives

The corridor sits within a wider framework of emerging regional economic integration. The India-Middle East-Europe Economic Corridor (IMEC), announced at the 2023 G20 Summit and involving Saudi Arabia, the US, France, Germany, Italy and the European Union, aims to connect India to Europe via the Gulf and the Middle East. The Syrian-Saudi corridor could function as a branch of this global project, with trade routes running from India through the Gulf, along the Saudi-Syrian railway, to Syria’s Mediterranean ports of Latakia and Tartus, and onward to Europe. In this configuration, Syria would recover elements of its historical position as a commercial bridge between Asia and Europe.

Interest in Syria as a transit node extends to digital infrastructure as well. Saudi Arabia has requested that Syria serve as the primary transit country for the East-to-Mediterranean Data Corridor (EMC), a major submarine data cable route from the Kingdom to Europe. This signals alignment with broader Saudi efforts to reintegrate Damascus into the regional framework, while positioning the Kingdom as a central gateway connecting Asia, Europe and Africa.