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- Amazon halts e-commerce operations in Abu Dhabi amid Middle East instability.
- Amazon employees in Saudi Arabia and Jordan are advised to stay indoors due to regional tension.
- Third-party sellers face disruptions as Amazon's Abu Dhabi closure affects logistics channels.
Amazon closed its fulfillment center operations in Abu Dhabi and suspended deliveries across the region, as the company responds to escalating instability that is rippling across its Middle East network.
The e-commerce giant shared the updates in an internal memo this week, which was seen by Business Insider. As a result, customers in the region are experiencing delivery and return delays, the memo said.
Amazon employees in Saudi Arabia and Jordan have been instructed to remain indoors, the memo added. Many Amazon employees across the region are transitioning to work from home this week, while business travel to Israel and Lebanon has been blocked.
No employee safety issues have been reported so far, the memo said.
"Our priority is the safety of our employees and partners across the region, and we're working closely with our local teams to ensure they have the support they need," an Amazon spokesperson said in an email to Business Insider.
The disruption highlights how quickly geopolitical tensions can strain global supply chains. Amazon has spent years expanding its logistics footprint in the Middle East, after acquiring Souq.com for roughly $600 million in 2017. The UAE anchors that network, which also includes Amazon marketplaces in Saudi Arabia, Egypt, and Turkey.
The shutdown in Abu Dhabi is expected to reduce network capacity across Amazon's Middle Eastern businesses, according to the memo. The company has placed additional operational support on standby as it manages disruptions and monitors the situation.
The impact extends well beyond Amazon's own warehouses. Nearly 300,000 third-party sellers in the region are facing shipment delays and potential order cancellations as logistics channels tighten, according to the memo. Many of these sellers rely on Amazon's fulfillment and cross-border shipping infrastructure to move goods between Gulf countries.
Amazon did not specify how long deliveries in Abu Dhabi would remain suspended.
The US-Iran conflict in the region has also caused a power outage at one of Amazon's data centers, the company announced on Sunday. Amazon said it could take at least a day to repair the damage.
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