Bahraini Finance Minister: Rising Transport Costs and Shipment Delays Due to Insecurity in the Strait of Hormuz and Bab al-Mandab

Kuala Lumpur, Oct 15 (KUNA) -- Bahrain’s Minister of Finance and National Economy, Sheikh Salman bin Khalifa Al Khalifa, said on Thursday that geopolitical conflicts and tensions are disrupting global trade routes, emphasizing that insecurity in the waters surrounding the Strait of Hormuz and the Bab al-Mandab has led to higher global shipping costs, delayed shipments, and constrained global growth.

Bahrain News Agency (BNA) reported that these remarks were made in a statement delivered by Sheikh Salman bin Khalifa on behalf of the Arab Group and the Maldives, represented by the Kingdom of Bahrain, before the International Monetary Fund and World Bank Development Committee at its 114th meeting, held within the framework of the annual meetings of the World Bank and the IMF in Bangkok, Thailand. The meetings were attended by committee member ministers and senior officials from international institutions and organizations.

Sheikh Salman bin Khalifa added that despite these challenges, “our countries remain committed to enhancing stability, recovery, resilience, and adaptability. Our message is one of resolve and international partnership.”

He noted that for decades, building resilience and adaptability has been linked to creating safety margins such as capital, reserves, and stockpiles. While these elements are indeed important, they represent only part of a system capable of resilience and adaptability. He stressed that “sustainable resilience and adaptability should be an integral part of the design of every aspect of the economic system.”

He pointed out that “by continuing to diversify our economies, strengthening public finance frameworks and financial sector regulatory frameworks, securing energy supplies and supply chains, and investing in our people, we enhance our resilience and make adaptability an inherent feature of our system designs.”

He stated that “job creation is the foundation of stability and shared prosperity. Providing quality jobs amid radical technological transformations will pose a complex challenge for many countries.”

In this context, Sheikh Salman bin Khalifa urged the World Bank to help countries not only prepare to adopt artificial intelligence (AI) but also to become part of its development and compete in an AI-driven global economy. He emphasized that doing so would “enhance our resilience and make the adaptability of our human capital an inherent feature of our system designs.”

The Bahraini Minister of Finance and National Economy also highlighted that regional cooperation enhances productivity and supply chain security, expressing hope that the World Bank Group would sponsor and finance the creation of the logistical infrastructure and cross-border transport networks needed by the world, thereby strengthening supply chain resilience.

He added that increasing private capital flows and directing them effectively remains of paramount importance, stressing that the challenge lies not in a shortage of capital but in linking it efficiently to opportunities while realistically assessing risks.

He called on the World Bank Group to expand the provision of blended finance solutions, enabling countries to broaden the scope of attracting private investment, enhancing the adaptability of capital allocation, and making it an inherent feature of financing mechanism designs. (End) K.N.A./M.N.A.