The South China Sea is among the most strategically significant regions in the world, primarily due to its pivotal role in the intense flux of trade between the East to the West. It needs to be underlined that approximately 60% of global maritime trade passes through Asia, with the South China Sea carrying an estimated third of global shipping (1). The Strait of Malacca, a narrow strait located between Malaysia and Indonesia, serves as a critical conduit for goods flowing from mainly the Gulf towards East, including key markets, such as Japan, South Korea and China. Consequently, the area has become a crucial chokepoint for energy trade routes, mainly for oil and liquified natural gas (LNG) shipments heading eastward. Hence, the area became one of the busiest knot in the world due to the intense and important flux of goods and energy connecting the Gulf region and the Indian Ocean with the Pacific. Additionally, the Strait of Malacca offers the shortest commercial route from the Gulf countries towards the East. Building on this, power projecting in the area is crucial to ensure a continuous presence and relevance, for Gulf countries seeking to enhance their international stance and to ensure the continuous passage of national goods and energy directed to the East is crucial to safeguarding their economic interests. The creation of new strategic assets for the Gulf countries is crucial in the South China Sea. These nations are actively pursuing partnerships with Southeast Asian countries to implement ports in the area, thereby strengthening bilateral relationships between the countries, while protecting their economic interests and projecting power.

The United Arab Emirates and Oman are two Gulf Cooperation Council (GCC) states making significant investments in Southeast Asia’s port infrastructure. In June 2023, the Abu Dhabi Ports Group signed a 50-year concession agreement with the Karachi Port Trust (Pakistan). Under the umbrella of the agreement, a joint venture has been formed between AD Ports Group and Kaheel Terminals to develop, manage and operate the Karachi Gateway Terminal Limited (KGTL) (2). More recently, AD Ports Group expressed interest in investing in Bangladesh’s ports development, precisely proposing a joint venture with the Chittagong Ports Authority, located on the eastern shores of Bangladesh, to build a new bay terminal. Additionally, in October 2024, AD Ports Group signed with Vingroup—a Vietnamese conglomerate company—a Memorandum of Understanding (MoU) to explore collaborations in seaport operations and building ship capabilities, but any further project between the two companies is yet to be confirmed.
Oman, on the other hand, is less vocal on its projects in Southeast Asia. Despite this, it is still focusing on expanding its investments abroad. Through the Asyad Group, supported by the Omani sovereign wealth fund, Muscat is seeking to invest in port infrastructure in different countries—confirmed by the current CEO of Asyad Drydock & Infrastructure Services Ahmed Al Bulushi in an interview to Bloomberg (3). The company is having ongoing talks to manage a port in Malaysia, in the meanwhile it’s seeking new deals elsewhere in the Asian continent. Nevertheless, most of the talks are expected to be concluded and finalised in the present year.

These investments underscore the Gulf countries’ interest in searching out, and constructing, strategic assets in Southeast Asia, as already underlined earlier. The GCC countries are aware that the possibilities coming from financing these types of projects can be extremely beneficial, not only for their own economic growth but also for the Southeast Asian countries involved. In fact, this awareness is pushing the countries into being more active in the area, in order to project power and to secure their own economic interests, by fostering mutually beneficial economic relationships.