Finance Minister: Navigation disruptions in the Strait of Hormuz affect supply chains and increase economic pressure on developing countries

Kuwait City, 13 October (KUNA) -- Finance Minister Dr. Yaqoub Al-Rafai stated that disruptions to navigation through the Strait of Hormuz are impacting supply chains, shipping costs, and food security, thereby increasing economic pressures, particularly on developing countries reliant on imports. This was said in Minister Al-Rafai’s speech today, Tuesday, during his participation in the high-level ministerial meeting titled “Food Security, Strategic Sea Lanes, and Solutions to Address Crises,” organized by the World Bank Group in cooperation with the United Nations Office for Project Services (UNOPS), as part of the annual meetings of the World Bank Group and International Monetary Fund Boards of Governors held in Bangkok, Kingdom of Thailand, from 12 to 18 October.

Al-Rafai emphasized the importance of the Strait of Hormuz as a vital passage whose role extends beyond the transport of energy supplies to include food, fertilizers, and essential goods. He outlined Kuwait’s efforts to address these challenges through emergency measures to ensure the continuity of supply chains, enhance coordination between the public and private sectors, and cooperate with Saudi Arabia and Oman to provide alternative maritime routes. He also highlighted support for shipping costs of certain essential imports, removal of logistical obstacles, and strengthening of strategic food reserves.

He praised international efforts aimed at ensuring the safe passage of essential supplies through the Strait of Hormuz, stressing the importance of enhancing cooperation among the United Nations, the World Bank Group, international financial institutions, and relevant countries to contribute to the continued flow of essential goods, diversification of supply routes, and the enhancement of food security and global economic stability. He noted Kuwait’s commitment to continuing constructive international cooperation to help protect food security and enhance global economic stability. (End) A.Kh / N.W.F