Why the UAE’s New Trade Routes Matter for Ethiopia’s Future

By Abel Takele

Global commerce relies heavily on a handful of strategic trade corridors, and when instability affects these routes, the consequences are felt well beyond the regions in which they are located.
Among the most significant of these routes is the Strait of Hormuz, a vital maritime passage linking the Persian Gulf to the Gulf of Oman and the Arabian Sea.

The corridor facilitates the movement of substantial volumes of crude oil, liquefied natural gas and fertiliser-linked commodities. In 2024 alone, an estimated 20 million barrels of petroleum passed through the strait daily, representing nearly a fifth of global petroleum liquids consumption and more than a quarter of worldwide seaborne oil trade.


Heightened tensions surrounding the waterway have introduced renewed uncertainty into already fragile global supply chains. Energy markets have responded quickly, with rising oil prices accompanied by increasing freight and insurance costs that are gradually feeding into import expenses across multiple economies.
For African countries, the ripple effects are immediate and tangible. Elevated fuel prices, more costly shipping routes and interruptions to fertiliser supply chains risk increasing import bills, placing added strain on foreign currency reserves and complicating agricultural planning cycles. Ethiopia faces particular vulnerability, as the disruption coincides with a critical period for agricultural input procurement, especially ammonia- and urea-based fertilisers required during the planting season.


These developments are placing regional logistics and trade systems under growing pressure. Amid the uncertainty, the UAEa key trade and re-export gateway for many African markets has indicated that maintaining the continuity of trade flows remains a priority despite the broader security challenges affecting the region.

His Excellency Sheikh Shakhboot bin Nahyan Al Nahyan, UAE Minister of State, said the country’s resilience had been tested by recent regional challenges.


“This strength has been particularly evident in the face of recent regional challenges. Since 28 February, the UAE has faced more than 2,700 terrorist missile and drone attacks — more than any other country — with our advanced air defence systems intercepting the vast majority of these unprovoked assaults,” he said.
The UAE’s response has focused not only on security but also on keeping trade routes functioning. A high-level coordination meeting at the headquarters of the Ports, Customs and Free Zone Corporation in Dubai brought together key authorities to address bottlenecks and maintain cargo flows to partner economies.


One of the measures introduced is a “Green Corridor” for cargo routed through the Sultanate of Oman. The system allows shipments to move through approved routes, including the Hatta border crossing, supported by faster customs procedures and sealed transit documentation. The corridor provides an alternative route at a time when maritime supply chains face growing uncertainty.


For Ethiopia, such alternatives matter. The country relies heavily on imported fuel, fertiliser, industrial inputs and consumer goods. Any delay in regional logistics can raise costs for businesses, strain agricultural supply chains and eventually feed into consumer prices.


The diplomatic relationship between Addis Ababa and Abu Dhabi has also become part of this wider effort to protect trade continuity. UAE and Ethiopian officials have held several high-level exchanges in recent months, with both sides linking regional stability, logistics cooperation and economic resilience.


Sheikh Shakhboot said Ethiopia’s support had reflected the strength of bilateral relations.
“To date, 179 countries have condemned these terrorist and unprovoked attacks and expressed solidarity with the UAE, including Ethiopia. This was reflected in the recent meeting between His Highness Sheikh Mohamed bin Zayed Al Nahyan, UAE President, and His Excellency Abiy Ahmed, Prime Minister of Ethiopia, which reflected our shared commitment to stability and strong bilateral ties,” he said.


The relationship has expanded beyond diplomacy. Since 2018, Ethiopia and the UAE have deepened cooperation across investment, finance, trade, technology and logistics. That relationship is now being tested by a more volatile global trading environment, where access to reliable routes can matter as much as access to capital.
“The UAE–Africa partnership has evolved into a model of trust, resilience and shared ambition, with countries like Ethiopia exemplifying the depth and strength of this cooperation,” Sheikh Shakhboot said.


For Ethiopia, the immediate priority is practical: keeping essential goods moving. As shipping costs rise and traditional routes face disruption, alternative logistics channels are becoming more important. Air cargo is also playing a larger role in moving high-value and time-sensitive goods, with Ethiopian Airlines serving as a critical bridge between Asia, Africa and Europe.


The current disruption may also accelerate longer-term shifts in trade between Africa and the Middle East. Route diversification, faster customs procedures, stronger logistics coordination and more flexible supply chains are no longer optional. They are becoming central to how countries manage external shocks.


The UAE’s approach points to a more pragmatic model of trade cooperation: one focused on continuity, coordination and the ability to keep goods moving under pressure.
“Even in the face of these challenges, the UAE remains committed to strengthening its partnership with Ethiopia to build a more secure, prosperous and sustainable future,” Sheikh Shakhboot said.


For Ethiopia, that cooperation offers a buffer against a difficult external environment. It cannot remove the risks created by global disruption, but it can help reduce delays, protect key supply chains and give import-dependent markets more room to manage uncertainty.
In a more fragmented trading system, such coordination is no longer exceptional. It is becoming part of economic resilience itself.

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