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Dubai Port Operator Sees 60% Decrease in Profits Due to Houthi Red Sea Attacks


DP World has reported a nearly 60 percent drop in half-year profits, partially due to the operations of the Houthis targeting shipping in the Red Sea.

The Dubai-based port operator DP World stated that its profits had fallen to $265 million this year, down from $651 million at the same time last year. The group’s chairman and CEO, Sultan Ahmed bin Sulayem, mentioned that disruptions in the Red Sea, caused by the ongoing attacks by Yemen’s Houthi rebels, had impacted the firm’s revenues.

Bin Sulayem highlighted the challenges faced in 2024 due to a deteriorating geopolitical environment and disruptions to global supply chains resulting from the Red Sea crisis. Despite the uncertainties in the near-term trading outlook, he expressed confidence in delivering stable full-year adjusted profits.

While Bin Sulayem did not specify the exact effects of Houthi attacks on the company, he reassured that DP World’s balance sheet remains strong and operations continue to generate substantial cash flow.

Since November, the Houthi rebel group, believed to be supported by Iran, has been targeting shipping in the Red Sea following their involvement in the conflict between Israel and Hamas.

The Red Sea is a crucial shipping lane, witnessing approximately $1 trillion worth of goods passing through annually. Houthi drone and rocket attacks have disrupted shipping and triggered intense combat involving the U.S. Navy.

Despite the rebels’ claims to target specific ships linked to Israel, the U.S., or the U.K., many attacked vessels have minimal connections to the conflict. Shipping companies have altered routes to avoid the Red Sea, impacting operations at Dubai’s Jebel Ali Port, which is DP World’s base and the world’s largest manmade harbor.

The Associated Press contributed to this report.



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