The mounting conflict centred on Iran is forcing Hong Kong-based firms to rethink where they send people and products. In comments to the South China Morning Post on March 8, start-ups and exporters described pivoting away from Gulf markets toward Europe, Southeast Asia and Australia after missiles and drones struck key infrastructure across the region. Entrepreneur Martin Zhu, whose Science-Park start-up ships electricity-free cooling paint to the UAE, said one-third of annual revenue is now at risk because cargoes are stuck at mainland ports and buyers cannot guarantee onward distribution. Other interviewees reported activating alternate distribution centres in Rotterdam and Singapore, while temporarily halting non-essential travel to the Gulf. Mobility consultancies note that the episode illustrates how quickly a popular expansion destination can become unreachable. Visa-on-arrival regimes remain technically valid, but with tens of thousands of flights cancelled, the bigger hurdle is physical access and adequate insurance cover. Companies are revisiting assignment policies, adding clauses that allow rapid relocation or remote-work switches when air links collapse. Government trade officials encourage businesses to make use of the "Free Trade Agreement Transhipment Facilitation Scheme" at Hong Kong’s air and sea ports to reroute goods without incurring extra tariffs. However, observers warn that if the war drags on, the combination of higher freight premiums and spiralling airfares could erode Hong Kong’s role as an aviation and logistics super-connector for the EMEA region.
Source: South China Morning Post
