UAE invests in Fujairah port to reduce reliance on Hormuz, enhancing trade access and logistics amid regional tensions.
The United Arab Emirates (UAE) is accelerating its strategic investments aimed at reducing dependency on the Strait of Hormuz. According to a report by the Financial Times, DP World plans to construct a new container port in Fujairah, located on the coast of the Gulf of Oman, and expand the capacity of the existing terminal.
This investment is considered one of the most significant steps in the UAE's strategy to relocate its energy and logistics infrastructure outside the Strait of Hormuz. Thus, the country aims to achieve direct access to global trade networks from its eastern coast while being less affected by potential geopolitical risks in the Gulf.
DP World's plans emerged following a 35-year concession agreement signed with Fujairah Ports in 2017. However, it remains unclear how the company will establish a coordination model with the existing terminal, which is currently operated by AD Ports Group under the Fujairah Terminals brand.
DP World, owned by the Dubai government, handled approximately 88 million TEUs of container traffic in 2024, accounting for about 10% of global container traffic. The company operates a vast port and logistics network consisting of around 80 terminals across 40 countries.
AD Ports Group, controlled by the Abu Dhabi administration, has accelerated its regional growth in recent years, while the Al Sharqi Royal Family, which controls Fujairah Ports, is attempting to leverage the port's increasing geostrategic importance into economic advantage.
The UAE's investments on the eastern coast are not limited to container shipping. A second pipeline, planned to be built parallel to the Habshan-Abu Dhabi Crude Oil Pipeline (ADCOP), aims to increase the current daily transportation capacity from 1.5 million barrels to 3 million barrels.
Fujairah Ports is also planning to expand its bulk cargo terminal operating in Dibba, near the Oman border.
Regular passenger services are expected to commence this summer on the high-speed railway line connecting Fujairah to Dubai and Abu Dhabi, while integrated container transportation systems are also being implemented.
Meanwhile, it is reported that the Hafeet Railway Project, which will extend to Oman’s Sohar Port, is largely completed. The activation of this connection is expected to further strengthen the logistics integration between the UAE and Oman.
Industry experts believe that DP World aims to replicate the success achieved at the Jebel Ali Port in Dubai in Fujairah as well. However, it is noted that there may be some operational challenges in the new project, such as connections with existing infrastructure, investment costs, and the reshaping of trade flows.
Nevertheless, due to regional security risks stemming from Iran and uncertainties in the Strait of Hormuz, it is expected that the UAE will continue to accelerate its investments in alternative ports and logistics centers on its eastern coast in the upcoming period. Experts suggest that this strategy aims to enhance both the security of the country's energy exports and its competitiveness in global supply chains.
Source: SeaNews Türkiye
