Key facts
- DP World plans to build a new port and container terminal on the UAE's east coast.
- The expansion aims to bypass the Strait of Hormuz.
- The UAE seeks to reduce its reliance on the Strait of Hormuz to zero.
- New infrastructure will include pipelines, rail, and road networks.
- The UAE is accelerating a second pipeline to Fujairah and evaluating a third.
Dubai-based port operator DP World is planning to construct a new port and container terminal on the United Arab Emirates’ east coast to bypass the Strait of Hormuz. This initiative follows Iran's announcement to close the waterway again amid ongoing regional conflict.
The UAE plans a major expansion of its eastern ports in Dibba, Fujairah, and Khor Fakkan to reduce its dependence on the Strait of Hormuz to zero. This strategy includes developing new pipelines, rail, and road networks to connect ports with oil, gas, and petroleum facilities, thereby strengthening export resilience. The UAE is also accelerating the construction of a second pipeline to Fujairah to double its crude export capacity and is evaluating a third petroleum pipeline to directly link interior oil fields to eastern coastal terminals.
Foreign Trade Minister Thani Al Zeyoudi stated that the UAE is working on a "highly ambitious plan" to boost its logistics sector and reduce Hormuz dependency regardless of whether the strait is open. While timelines and costs are unspecified, the projects are in the feasibility phase and are expected to require billions of dollars. Before the conflict, approximately one-fifth of global crude and liquefied natural gas passed through Hormuz, but its closure has forced the UAE to rely on alternative, more expensive methods for commodity transport.