Malaga exports under threat as Middle East conflict sparks 'business fabric' alert
Nearly 400 companies face cargo freezes and logistical chaos as regional war risks €68 million trade surplus
The tension between the US and Iran has taken Malaga exporters in the Middle East by surprise. Although it is still early to estimate what losses the war escalation will bring, some exporters have already frozen shipments in the short term.
Nearly 400 companies in the province do business with the area, which has become a consolidated destination for products such as olive oil, olives, nuts and subtropical fruits, as well as for services.Among them are some well-known names: Dcoop, Hutesa, Aceites Málaga, Aertec Solutions, Airzone, Mayoral, Aganova. According to Andalucía Trade, 76 of them have been 'regular' exporters in the past four years.
Sales to the Middle East contributed almost 68 million euros in Malaga's last year trade balance, 3.9% less than in 2024. The areas of interest for the province were: Saudi Arabia, Bahrain, Egypt, the UAE, Iraq, Iran, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Republic of Syria, Palestine and Yemen. Imports from this area amounted to 39.9 million, resulting in a significant trade surplus for Malaga with the Middle East.
In the Andalusian ranking, Malaga is the fifth province with the highest volume of exports (ahead of Seville, Huelva, Cadiz and Cordoba). Malaga contributes only 6.9% of Andalucía's total sales, but nevertheless accounts for 26% of exporting companies. "The countries of the Middle East are markets of interest for the province of Malaga, mainly due to their exponential development and their opening up in recent years," the chamber of commerce says.
The escalation of the war has set off alarm bells among companies with interests in the area, especially those with goods in transit or due to leave and those with displaced personnel.
"If the conflict extends over time, there are companies that could be greatly affected by the decline in demand in these markets," the chamber of commerce points out.
"Companies tell us that it is too early to evaluate the impact of this situation. Above all, it depends on the duration of the conflict," the chamber of commerce says. "Exporters say that they have temporarily frozen shipments. If the conflict extends over time, there are companies that could be greatly affected by the decline in demand in these markets. On the other hand, maritime routes are already feeling the impact, having to look for alternatives or include land routes from nearby ports."
One example of a company hit hard by the crisis is Linasson, which specialises in fodder distribution: it sells almost half of its production in the Middle East. It has halted scheduled shipments and those already in progress are waiting in nearby ports or at sea, until the company finds the best alternative to get the goods to their destination. Hutesa, Dcoop and Aceites Málaga also have goods in transit.
In addition, Malaga has more and more companies providing services in the area: companies that accompany foreigners to invest in real estate or specialised consultancies and tourist agencies. "Sectors such as tourism may be particularly impacted. There is an increasingly important segment of tourists from these markets with high purchasing power," the chamber says.
Although it is not forbidden to export to Iran, in practice there are legal, financial and logistical constraints that make it very difficult to enter the country.
Iran: the almost banned market
The main market for Malaga exporters in the region is Saudi Arabia, which bought products worth almost 18 million last year. The second is Israel, with almost 17 million, and in third place is the UAE, with almost 13 million. Then come: Qatar (six million); Jordan (3.9 million, the fastest growing market); Lebanon (2.2 million); Kuwait (1.9 million); Bahrain (almost 1.4 million). At the bottom of the list is Iran, with an anecdotal 13,817 euros.
While there is no official ban on exporting to Iran, there are serious constraints that make Iran a difficult market to access. The EU restricts the sale of 'dual-use goods': any technology, software or machinery that may have a military application (from chemicals to advanced electronics to carbon fibre). In addition, most banks refuse to process collections or payments to or from Iran and shipping lines do not call there.
This was not always the case: a few years ago, there were companies from Malaga that regularly sold to Iran. In 2019, the chamber of commerce even organised a trade mission to Tehran.
