Middle East conflict and tariffs delay SBO revenue and orders
Geopolitical instability and shifting US tariff policies have disrupted SBO's logistics and delayed customer orders. The company views these disruptions as short-term headwinds that may foster long-term supply chain diversification.
SBO has reported that the ongoing conflict in the Middle East has negatively impacted its operations, a region that accounts for 14 percent of its revenue and employs 10 percent of its staff. Logistics restrictions have prevented the delivery of new goods to the area and limited exports from Dubai to countries such as Iraq for several months, delaying revenue realization. Simultaneously, uncertainty surrounding US tariffs in 2025 has caused customers to postpone orders, as frequent policy changes made it impossible to predict final costs. The CEO noted that while these factors have slowed the current economic upswing, they may lead to long-term benefits as countries seek to diversify supply chains and rebuild strategic reserves. SBO is also positioned to benefit from potential increased activity in Venezuela, which holds the highest oil reserves, though Western companies remain cautious due to past expropriations and current security concerns.