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UAE accelerates Fujairah expansion to reduce reliance on the Strait of Hormuz

DP World is reportedly exploring plans to develop a new multipurpose port and container terminal in Fujairah on the UAE’s east coast, creating an additional trade gateway that bypasses the Strait of Hormuz entirely.

According to the Financial Times, the project could be completed in as little as 18 months.

The company has openly stated that it is pursuing diversification initiatives aimed at strengthening resilience against future supply-chain disruptions.

The speed of the proposed development is telling. Major port projects are typically designed to address strategic challenges that unfold over decades, not short-term market fluctuations.

Investment on this scale reflects a long-term view that reducing dependence on critical maritime chokepoints has become an economic and security priority.

For many years, Jebel Ali served as the principal hub for Dubai’s international trade.

However, periods of disruption in the Strait of Hormuz have exposed the risks associated with concentrating so much activity along a single route. As cargo volumes shifted towards Fujairah and Khor Fakkan, congestion pressures increased, highlighting the need for additional capacity beyond the Gulf’s most vulnerable shipping corridor.

DP World’s reported plans would add significant infrastructure outside the Strait, providing greater flexibility for regional trade flows.

The UAE has adopted a similar strategy across its energy sector. After raising oil production to a record 4.1 million barrels per day in June following its departure from OPEC, the country increased crude exports through Fujairah while advancing plans for a second pipeline that is expected to double export capacity from the emirate from next year.

Each investment further reduces the country’s exposure to disruptions in the Strait of Hormuz and strengthens Fujairah’s role as a strategic export hub.