HSBC Group Chief Executive Georges Elhedery said on Tuesday that the Gulf region would recover from the impact of the Iran war through investment in more resilient alternative logistics routes, suggesting that the Strait of Hormuz could become “redundant” within about five years.
Speaking at an event in Dubai, Elhedery said the development of alternative routes could reduce the region’s reliance on the strategic waterway, which has a central role in Gulf shipping. His remarks pointed to the potential for the conflict to accelerate investment in transport and logistics infrastructure designed to withstand future disruptions.
Elhedery said HSBC’s commitment to the Gulf Cooperation Council (GCC) region remained “steadfast”. The visit was his second trip to the region since the beginning of the conflict, signalling the bank’s continued engagement with Gulf markets during a period of uncertainty.
His comments linked the region’s longer-term recovery to the development of alternative transport networks rather than continued dependence on existing routes. He suggested that, over a period of approximately five years, such investment could make the Strait of Hormuz redundant.
Elhedery did not provide further details in the remarks supplied about the alternative routes, the scale of investment required or the specific infrastructure projects that could support the proposed shift.
