The UAE plans a 2 billion dollar port expansion to bypass the Strait of Hormuz amid recurring closure risks and trade disruptions.
The United Arab Emirates is developing a new port at Fujairah to create an alternative shipping route that avoids the Strait of Hormuz. The project, part of a broader infrastructure push, follows a 95% collapse in activity at Dubai’s Jebel Ali port after recent closures disrupted trade flows.
DP World is in talks to build a multipurpose port and container terminal at Fujairah, with construction expected to take 18 months. The UAE is also upgrading facilities at Dibba and Khor Fakkan, including a 2 billion dollar expansion by Gulftainer at Khor Fakkan.
While the move aims to reduce long-term reliance on the strait, it reinforces near-term oil risk premiums by highlighting vulnerability to regional tensions.