The United Arab Emirates has become a name that is globally famous for its amazing tourism and top of the line lifestyle. However, the nation has more than it meets the eye.
UAE is trying to become an independent nation as the majority of its commodities are from the import-export trade which has become a volatile sector to deal with in the past couple of years. The United Arab Emirates is aiming to grow its industries and this involves the usage of chemicals and other essentials in the sector that aid the manufacture or the research processes. However, UAE doesn’t have access to any chemical reserves and has been always dependent on the imports from other nations to meet its chemical needs. The Strait of Hormuz between Iran and Saudi Arabia closure would cause cut off of chemicals in most Middle East chemical exports, causing a severe chemical to supply shock. The Strait is an important shipping route for chemicals produced in Iran, Kuwait, Qatar, the UAE, as well as sites along the east coast of Saudi Arabia. A chemical shortage can also bring the petroleum industry of the nation to a standstill as the chemicals imported by the nation are mostly used in the petroleum industry.
With the shortages of Chemicals, the prices of commodities in the Middle Eastern region are expected to go up. Even the prices of the chemicals will be increased as the supply decreases and the demand increases causing a bidding war to attain the commodity. Filthy rich UAE won’t think a second thought to bid some of the record high prices for these chemicals, I guess all we can do is wait and watch.