The United Arab Emirates has begun developing a major port project on the coast of the Gulf of Oman. The new facility will be built in the Emirate of Fujairah as part of the country’s strategy to reduce its reliance on the Strait of Hormuz, one of the world’s most critical—and increasingly vulnerable—maritime trade routes.
The decision comes amid heightened regional tensions. Military conflict involving Iran and the effective disruption of shipping through the Strait of Hormuz have significantly affected the UAE’s logistics sector. According to The Independent, citing the Financial Times, the project is intended to strengthen the country’s supply chain resilience and ensure uninterrupted cargo transportation.
Jebel Ali Operations Have Declined Sharply
One of the hardest-hit facilities is Jebel Ali Port, the largest container hub in the Middle East. Due to disruptions in maritime traffic through the Strait of Hormuz, operations at the port have fallen by an estimated 90–95%.
The port has also suffered damage from debris caused by Iranian missile strikes, further impacting its operational capacity. As a result, DP World, the state-owned port operator, is expected to face a significant decline in revenue.
According to Moody’s, the company’s annual revenue could decrease from approximately $6.6 billion to $5.9 billion. These losses have accelerated efforts to develop alternative logistics infrastructure outside the Strait of Hormuz.
Fujairah Will Become a New Logistics Hub
In response to these challenges, DP World is negotiating the construction of a new multipurpose port and container terminal in Fujairah, located directly on the Gulf of Oman. The project is designed to create a modern logistics hub capable of handling containerized cargo without relying on the Strait of Hormuz.
Under the proposed logistics model, cargo ships will unload containers in Fujairah, allowing vessels to avoid the high-risk maritime corridor. The containers will then be transported by road to Dubai, Abu Dhabi, and other Gulf countries.
This alternative route is expected to improve supply chain reliability and reduce the risks associated with regional geopolitical instability.
According to preliminary estimates, the new port could be completed within approximately 18 months if construction proceeds as planned.
The UAE Seeks to Eliminate Dependence on the Strait
UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi stated that the country’s long-term objective extends beyond responding to the current crisis. Even if navigation through the Strait of Hormuz returns to normal, the UAE intends to continue expanding alternative logistics routes.
The government views the Fujairah project as a strategic investment aimed at minimizing dependence on a single maritime corridor and strengthening the nation’s role as a global trade hub.
At the same time, port operator Gulftainer has announced plans to invest approximately $2 billion in expanding Khorfakkan Port. The investment is expected to increase the port’s handling capacity and further enhance the UAE’s logistics infrastructure.
Together, these projects demonstrate the UAE’s commitment to adapting to evolving geopolitical risks while reinforcing its position as one of the Middle East’s leading transportation and logistics centers.