Saudi-listed food and retail investment company Savola Group has diversified its global supply chains to offset the greater impact of the US-Iran war in the second quarter of 2026, according to its CEO Sameh Hassan.

The impact of the war was limited, which started by the end of the first quarter, he told Al Arabiya.

Savola mainly relies on Jeddah Islamic Port and shipping lanes passing through the Bab el-Mandeb Strait, as well as the UAE-Oman green corridor, to supply goods to the Gulf countries, including the UAE, helping reduce operational disruptions, he said.

Hassan said costs have increased by 5 percent to 25  percent  in the second quarter, while some oil-related materials have risen by almost 50  percent .

The company is working to absorb most of the inflationary costs, passing on a limited portion to consumers to protect profit margins as much as possible, the CEO said.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.