In recent years, but especially throughout 2024, organizations across manufacturing, healthcare, and oil and gas sectors have faced severe supply chain disruptions. These have led to delays, increased costs, quality compromises, and missed customer expectations. The impact has been global, but nations like the United States, Saudi Arabia, and the UAE have experienced unique vulnerabilities and responses.
Manufacturing: From Maritime Disruptions to Raw Material Shortages
Manufacturers around the world, including those in the Gulf and North America, have been affected by bottlenecks caused by geopolitical conflicts, rising freight rates, and raw material shortages. The Red Sea crisis, which intensified in late 2023, forced shipping routes to bypass the Suez Canal, leading to increased delivery times and insurance premiums. Transit times for goods between Asia and Europe rose by over 50%, placing stress on downstream operations.
Concurrently, manufacturers faced shortages in critical raw materials such as tin, copper, and aluminum, which affected electronics, automotive, and heavy machinery sectors. The price volatility of these inputs strained procurement teams and delayed production schedules. In response, many U.S. and GCC manufacturers have initiated diversification strategies, including reshoring, nearshoring, and investing in regional supply chains.
Healthcare: Medication Shortages and Supply Fragility
Healthcare systems, especially in the U.S., experienced record-high drug shortages in 2024. Over 300 essential medications, including anesthetics, injectables, psychiatric medications, and chemotherapy drugs, were either delayed or unavailable. This caused care delays, forced medication substitutions, and impacted treatment plans across both inpatient and outpatient facilities.
In the Middle East, particularly in Saudi Arabia and the UAE, healthcare infrastructure is expanding rapidly. However, dependency on imported medical devices and pharmaceuticals has exposed systemic fragilities. Providers in the region are now prioritizing procurement transparency, digital supply chain monitoring, and localized warehousing to reduce risk.
Oil & Gas: Volatility in Logistics and Cybersecurity Risks
The oil and gas sector remains heavily reliant on complex global logistics. With about 20% of global petroleum passing through the Strait of Hormuz, tensions in the Middle East pose a constant threat to supply continuity. Oil majors have increased contingency planning, rerouting strategies, and investment in security operations to maintain flow.
Digital transformation in the energy sector has also introduced new risks. Increased reliance on industrial IoT, SCADA systems, and remote monitoring tools has improved operational efficiency, but exposed operations to cyber threats. Offshore installations and refineries are particularly vulnerable, with several warnings issued in 2024 regarding cybersecurity incidents targeting production environments.
Regional Response and Strategic Shifts
Saudi Arabia and the UAE have launched significant initiatives to strengthen local and regional supply chain resilience. These include the development of domestic industrial bases, expansion of logistics corridors, and incentives to increase local content in key sectors. Strategic frameworks under Vision 2030 in Saudi Arabia and UAE’s Operation 300bn are designed to reduce external dependencies while improving self-sufficiency in critical sectors.
Meanwhile, the United States has implemented legislative action including the CHIPS and Science Act and the Inflation Reduction Act, promoting domestic manufacturing of semiconductors, medical supplies, and energy components.
Key Pillars for Future Supply Chain Resilience
To build future-ready supply chains, organizations must focus on:
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End-to-end visibility through real-time data and monitoring.
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Supplier diversification across regions and risk levels.
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Local production capabilities for essential inputs.
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Cybersecurity frameworks to protect digital logistics systems.
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Public-private coordination to address systemic risks collectively.
Sources
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Infor Nexus – Impact of Red Sea crisis on global shipping
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Reuters – Red Sea disruptions and oil shipping risks
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Achilles – Reports on raw material shortages and procurement risks
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U.S. Drug Shortages Database – Medication supply issues in 2024
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Arxiv – Healthcare supply chain vulnerabilities during geopolitical events
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Consultancy-me – GCC industrial resilience strategies
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Oliver Wyman – Supply chain visibility and national sourcing in the Middle East
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Kearney Middle East – Local supply development recommendations
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U.S. Quadrennial Supply Chain Review – National policy for resilience
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Deloitte – Cybersecurity risks in oil & gas digital infrastructure
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Baker Hughes and Shell – Corporate reports on logistics planning in volatile regions
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AuditBoard – Risk-based continuity and supply chain resilience planning
