Ceasefire To Help UAE Businesses Plan Short Term, But Backlog To Take Weeks To Clear

2026-04-09 04:15:23

(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]

The US-Israel-Iran ceasefire will allow UAE businesses to make short-term forward plans, but industry executives say it will take weeks to fully clear the backlog in global supply chains.

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Firms expect about 60 to 70 per cent of normal operational flow within two weeks. However, clearing accumulated shipments – particularly in secondary markets across South Asia, Africa and beyond – could take four to six weeks.

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Anis Sajan, vice-chairman of Danube Group, said the ceasefire will ease pressure on the logistics sector by reopening shipping routes, lowering insurance costs and improving schedule reliability.

However, he warned that normalisation will not be immediate, as ports, carriers and freight networks need time to reposition assets after the disruption.

He added that while movement will resume quickly,“vessel bunching” and container backlogs at ports will take several weeks to clear, with a phased recovery more realistic than a quick return to normal.

Costs and capacity pressures

Hakan Ikizoglu, founder and chairman of CargoCrew, said the return of shipping capacity will improve availability and ease space constraints, but could also put downward pressure on freight rates as demand stabilises.

He added that some cargo shifted from sea to air during the disruption may return to ocean freight, easing air cargo demand but compressing margins in the sector.

Ikizoglu also noted that jet fuel prices are likely to remain elevated in the short term, while insurance underwriters are expected to take a cautious, phased approach to restoring normal routing.

He said major Gulf hubs could return to around 60 to 70 per cent of normal flow within two weeks, while full backlog clearance may take up to six weeks.

Kamal Vachani, deputy CEO of Al Maya Group, said the ceasefire will act as a catalyst for renewed economic activity and allow businesses to refocus on innovation and investment.

“It allows us to move beyond immediate uncertainties and refocus our collective efforts on innovation, infrastructure, and the large-scale investments that drive future prosperity. I remain highly optimistic that this shift will translate into tangible growth, benefiting not only the local business community but also the international partners who look to our region for security and opportunity,” added Vachani.

Paras Shahdadpuri, chairman of Nikai Group, said it will help restore confidence and enable forward planning, crediting the UAE's stability and leadership for maintaining business continuity during regional uncertainty.

“The UAE has consistently exhibited a strong commitment to ensuring continuity, resilience, and a secure operating environment, even during periods of regional uncertainty,” he added.

Bharat Bhatia, chairman and CEO of Conares, called the development positive for manufacturers, saying the UAE's resilience ensures continued confidence in operations and long-term growth.

“ We have seen this nation's resilience and consistency at the highest level. The UAE has built a strong foundation that allows businesses to continue operating with confidence, even amid global uncertainties. This stability ensures that industries can remain focused on growth, continuity, and contributing to the UAE's long-term economic progress,” he added.

Anuj Jain, CEO of Sobha Furniture, said the reopening of the Strait of Hormuz is reassuring for global trade and will ease immediate pressure on shipping and sourcing timelines.

“In the immediate term, it will ease pressures around sourcing and shipping timelines, allowing businesses to return to a more predictable operating environment. Stability in logistics is fundamental for maintaining momentum, particularly for industries that rely on timely movement of materials and products,” he added.