DUBAI/LONDON: Dubai-based Al Khaleej Sugar, which operates the world’s largest port-based sugar refinery, continues to run normally and remains open for both imports and exports, Managing Director Jamal Al-Ghurair told Reuters on Thursday.
His comments come as the U.S.-Israeli war with Iran entered its sixth day, with vessel traffic through the strategic Strait of Hormuz largely disrupted.
Al Khaleej relies heavily on the waterway for its supply chain, importing around 1.6 million metric tons of raw sugar annually and exporting about 1.3 million tons of refined sugar each year.
Al-Ghurair said the company could use alternative ports — Fujairah, Khorfakan and Sohar — located outside the Strait of Hormuz if necessary to maintain its trade flows.
He added that the company’s global customers understand the current situation and are coordinating with shipping companies to manage logistics.
Al-Ghurair also said Al Khaleej holds around two years of raw sugar reserves, provided the sugar is not refined and exported outside the Gulf region. The company could also supply sugar to neighbouring countries if required.
The disruption raises concerns over food security in the Gulf, where countries import 80% to 90% of their food, marking the region’s biggest challenge since the 2007–08 global food crisis, when prices of staple foods surged.
The United Arab Emirates said its strategic reserves of essential goods can cover four to six months of demand and has urged residents to report unjustified price increases through a dedicated hotline.
Supermarket staff told Reuters that store shelves remain largely stocked, although some products are taking longer to replenish.
Sugar consultant Michael McDougall said the Gulf imports about 10% of the world’s raw sugar through the Strait of Hormuz each year and exports around 5% of global refined sugar through the same route.
“The longer there is a blockade the worse the problem will get, but the refineries still have some stock,” he said.
According to Reuters calculations based on data from the International Sugar Organization, Al Khaleej accounts for nearly 4% of global raw sugar imports and more than 4% of worldwide refined sugar exports.
