Dubai-based port operator DP World reported a sharp drop in its half-year profits, falling nearly 60%, partly due to ongoing attacks by Yemen’s Houthi rebels linked to the Israel-Hamas conflict. The company announced on Thursday that its profits fell to $265 million, down from $651 million during the same period last year.
DP World Group’s chairman and CEO, Sultan Ahmed bin Sulayem, highlighted the challenges posed by the geopolitical instability in the region. “The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis,” he said, noting that the company still expects stable full-year adjusted profits despite the uncertain trading outlook.
The Houthi rebels have targeted shipping in the Red Sea corridor since November, claiming their strikes are against vessels linked to Israel, the U.S., and the UK. However, several ships attacked have had little or no connection to the conflict. The disruption has led some shipping companies to reroute around the Cape of Good Hope, impacting Dubai’s Jebel Ali Port, the hub of DP World and the world’s largest manmade harbor.
DP World’s struggles are compounded by previous challenges from the pandemic. However, while the port operator has been hit hard, Dubai’s flagship carrier Emirates has seen growth, demonstrating the varied impacts of regional turmoil on the emirate’s key industries.
