Middle East War's Impact Spreads, Affecting 677 SMEs

Domestic small and medium-sized enterprises (SMEs) are continuing to experience damages due to the prolonged conflict in the Middle East. The impact is growing, compounded by transportation disruptions, rising logistics costs, and contract delays.

According to the Ministry of SMEs and Startups, as of noon on the 22nd, a total of 677 cases related to the Middle East war, including damages, difficulties, and concerns reported by SMEs, had been recorded. This represents an increase of 59 cases from the previous week, with 496 cases classified as damages or difficulties and 113 as concerns.

Among the reported damages and difficulties, transportation disruptions were the most common at 245 cases, followed by rising logistics costs (35.9%) and contract cancellations or holds (35.3%).

By country, damages related to the Middle East region, including the United Arab Emirates (UAE) and Saudi Arabia, accounted for the majority at 497 cases. Damages related to Iran were recorded at 91 cases, and those related to Israel at 85 cases.

Cases have also emerged where delivery schedules are indefinitely postponed due to soaring prices and supply disruptions of petrochemical-based auxiliary materials. There have also been instances where additional freight charges were requested because of shipping delays passing through the Strait of Hormuz.