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18 April 2024

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Beyond Oil and Trade: Digital Corridors and Economic Security

22-10-2026 02:35 PM


Dr. Hamad Kasasbeh
Maritime routes in the Middle East carry more than oil and goods. They also carry a large part of the world’s data through undersea cables in areas such as the Red Sea and the Gulf. If a cable near Bab el-Mandeb or the Strait of Hormuz is damaged, the effect may go beyond shipping and energy. Banks, cloud services, online payments and government platforms may also be affected. This means that reliable digital connections are now part of keeping the economy running.

Digital disruptions are not only a future risk. They have already happened. In 2024, four undersea cables off West Africa were damaged, affecting internet connections in 13 countries. Cables in the Red Sea were also damaged during the same year. These problems may be caused by natural events or human activity. The main lesson is simple: when too much data depends on a small number of routes, one local problem can create wider economic effects. Having different routes and real backup options is therefore important.

Undersea cables are no longer important only for telecom companies. They support banking, customs, trade, supply chains, cloud services and government work. A short problem in a non-essential service may have a limited effect. But if payment systems, customs platforms or government communications stop, the economic cost can rise quickly. The important questions are which services must continue, how long they can operate under pressure, and what happens if the disruption lasts for hours or days.

When the possible cost of disruption is clear, investment decisions become easier. A new route, extra backup capacity or local data hosting may cost money, but the cost can be reasonable if it prevents a much larger loss. Not every service needs the same level of protection. Priority should go to services that have the greatest economic and social importance. Readiness should also be tested in practical terms: how fast can traffic move to another route, and is that backup route truly separate?

Digital resilience also matters for investment. Companies choosing where to place data centres, financial services or regional digital operations look at the reliability of local connections, along with energy, taxes and skills. A country with several strong routes, reliable data centres, local hosting and tested backup plans is more attractive to businesses that cannot afford long periods of disruption. Strong digital infrastructure can therefore support both economic security and competitiveness.

Countries in the region should treat digital networks as important economic infrastructure. These networks should be tested during difficult conditions, not only judged when everything is working normally. Having more than one provider or route does not always mean there is a real backup. Different services may still depend on the same cable, landing point or connection. Real readiness starts by knowing where these shared risks are and deciding which services must continue during a major disruption.

Better readiness does not always require new institutions or more rules. What is needed first is a clear picture of the system: which services are essential, which routes they use, where the main weak points are, and what backup exists. A practical test that simulates the loss of a major international route can show what continues to work, what fails, how quickly traffic can be moved, and what the economic cost may be. This can help direct investment to the areas that matter most.

In a region where risks can change quickly, digital readiness can no longer be delayed or treated as a technical issue only. It is part of the economy’s ability to continue during a crisis. The aim is not to create fear, but to make sure that backup routes work and essential services can continue if a major connection is disrupted. Digital corridors are now part of the basic infrastructure of modern economies, and preparing for disruption helps protect services, businesses, investment and confidence.




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