Yemeni Blockade inflicts UAE Shipping Giant’s Profits by 60%

Yemeni Blockade Causes 59% Profit Drop for DP World

UAE logistics and maritime services firm DP World announced on August 15 a 59 percent drop in profits due to pro-Palestinian actions by the Yemeni army and the Ansarallah resistance movement in the Red and Arabian Seas.

DP World earned $265 million in the first half of 2024, down from $651 million in the same period last year.

DP World said in a statement to Reuters that the “crisis” in the Red Sea had increased operational costs and disruptions.

The Emirati company posted a 1.9 percent decline in container volumes as the situation also adversely affected Red Sea ports such as Saudi Arabia’s Jeddah port and Egypt’s Sokhna port.

Profits from Northern European operations also fell by 4.3 percent.

Revenue from its logistics business fell two percent, and its marine services posted a 4.1 percent drop in half-year revenue.

The armed forces of Yemen’s Sana’a government and the merged Ansarallah resistance movement imposed a naval blockade against Israel-bound ships in the Red Sea, the Arabian Sea, the Gulf of Aden, the Indian Ocean and the Mediterranean since November 14. In solidarity with the Palestinian people and in support of the resistance in Gaza.

Israeli-affiliated ships or vessels bound for Israeli ports in violation of this embargo have been attacked in Yemeni missile and drone operations.

Sanaa’s soldiers have promised to continue their attack until the beleaguered strip has experienced a truce. The embargo has severely impacted Israel’s economy.

After the 2020 Abraham Accords, which saw numerous Gulf and Arab governments normalise relations with Israel, the UAE—an essential component of the Saudi-led war against Yemen that started in 2015—has established important links with Tel Aviv.

In order to assist the Israeli government in overcoming the Yemeni embargo, the UAE helped to establish a land route between Israel and Arab nations after the battle against Gaza that followed the Operation Al-Aqsa deluge.

Part of these operations include shipping items to the United Arab Emirates, where they are trucked via Saudi Arabia and Jordan before being delivered across the King Hussein Bridge to Israel.

Recently, Abu Dhabi has increased its attempts to increase Israel’s combined military and intelligence presence in the Socotra archipelago of Yemen.