The Banking Executive Magazine - August Issue

INTRODUCTION The governance of the Red Sea is multifaceted, involving both strategic and geopolitical dimensions. A Red Sea governance framework involves infrastructure and technology gover- nance, financial and risk manage- ment, and regulation. The latter involves various strategies and poli- cies for enhanced global trade and supply chain management. This article highlights the importance of the Red Sea governance in light of the latest geopolitical development. The article overviews the Red Sea in- frastructure and activity including the main facts and figures, the shipping routes passing through the Red Sea and the main goods and services traded through the Red Sea. The im- portance of the Red Sea in global trade is highlighted with a focus on the latest developments and the geopolitical risks and the impact of the Red Sea disruption on global trade. The article concludes by draw- ing the future of the Red Sea trade, technologies, and infrastructure to- wards greater governance and Arab banks contribution to Red Sea gover- nance. RED SEA TRADE INFRASTRUCTURE AND ACTIVIT Y The Red Sea is a vital artery for global trade. Recent developments have reshaped the Red Sea infra- structure and activity in dramatic ways. Key Ports and Facilities of the red sea include: • Port Sudan: Undergoing expansion and modernization, especially with Chinese investment via the Belt and Road Initiative (BRI). • Berenice Naval Base (Egypt): Sig- nificantly expanded to support both military and commercial mar- itime operations. • Djibouti Port: A major logistics hub, especially for East African trade and Chinese naval presence. • Jeddah Islamic Port (Saudi Arabia): One of the busiest Red Sea ports, central to Saudi Vision 2030’s lo- gistics ambitions involve develop- ing new corridors: • China’s Belt & Road Initiative (BRI): Infrastructure investments across Sudan, Egypt, and Djibouti and strengthening maritime logistics and port connectivity. • India-Middle East-Europe Eco- nomic Corridor (IMEC): Proposed alternative to BRI. Red Sea Geography and Physical Characteristics • Location: Between Africa and the Arabian Peninsula. • Length: ~2,250 km (1,400 miles) • Width: Up to 355 km (221 miles) • Surface Area: ~438,000 km² • Average Depth: 490 meters (1,610 feet) • Maximum Depth: 3,040 meters • Salinity: ~40%, the highest in the world the BANKING EXECUTIVE 8 ISSUE 200 AUGUST 2025 RED SEA GOVERNANCE BY DR SOHA MAAD