Amazon has suspended its delivery operations in Abu Dhabi and closed a major fulfilment centre there, according to an internal company memo seen by Business Insider. The move is a direct response to escalating regional instability stemming from the US-Iran conflict, which is causing significant disruption across the e-commerce giant's Middle Eastern network.
Customers across the region are now experiencing delays in deliveries and returns. Furthermore, Amazon has instructed employees in Saudi Arabia and Jordan to remain indoors, with many staff transitioning to remote work. The company has also blocked all business travel to Israel and Lebanon.
Geopolitical Tensions Strain Logistics Network
The abrupt shutdown highlights the vulnerability of global supply chains to sudden geopolitical flare-ups. Amazon has invested heavily in the region since its 2017 acquisition of Souq.com for approximately $600 million. The United Arab Emirates serves as a central hub for its operations, which also include marketplaces in Saudi Arabia, Egypt, and Turkey.
An internal assessment states the Abu Dhabi closure is expected to reduce overall network capacity for Amazon's Middle Eastern businesses. The company has placed additional operational support teams on standby to manage the ongoing disruptions.
Widespread Impact on Third-Party Sellers
The consequences extend far beyond Amazon's own warehouses. The internal memo indicates that nearly 300,000 third-party sellers in the region are now facing shipment delays and potential order cancellations as logistics channels tighten. Many of these businesses rely exclusively on Amazon's fulfilment and cross-border shipping infrastructure to move goods between Gulf countries.
Amazon has not provided a timeline for when deliveries in Abu Dhabi might resume. In a separate incident linked to the regional conflict, the company announced a power outage at one of its data centres on Sunday, estimating repairs would take at least one day.
No employee safety issues have been reported so far. A spokesperson for Amazon was not immediately available for comment when contacted by Business Insider.