The United Arab Emirates has begun implementing a major maritime infrastructure project designed to strengthen the country’s logistics network and reduce its dependence on the Strait of Hormuz. Authorities plan to build a new deep-water port in the Emirate of Fujairah, located on the Gulf of Oman, creating an alternative gateway for international cargo that avoids one of the world’s most strategically important—and increasingly vulnerable—shipping routes.
The initiative comes as regional security concerns continue to reshape global trade patterns. Rising tensions involving Iran and repeated disruptions to navigation through the Strait of Hormuz have exposed the risks associated with relying on a single maritime corridor for imports and exports. According to The Independent, citing the Financial Times, these developments have prompted the UAE to accelerate plans for a more resilient logistics infrastructure.
Shipping disruptions hit Dubai’s main logistics hub
One of the facilities most affected by the recent instability has been Jebel Ali Port, widely recognized as the largest container terminal in the Middle East. The sharp decline in commercial traffic passing through the Strait of Hormuz significantly reduced the port’s operational capacity, with cargo activity reportedly falling by approximately 90–95%.
The situation became even more challenging after debris from Iranian missile strikes damaged parts of the port’s infrastructure. These incidents created additional operational difficulties and placed further pressure on port operator DP World.
Financial analysts also expect the disruptions to affect the company’s performance. Credit rating agency Moody’s estimates that DP World’s annual revenue could decline from roughly $6.6 billion to around $5.9 billion if current conditions persist. The projected losses have reinforced the need to diversify shipping routes and invest in alternative transport hubs capable of maintaining trade flows during periods of regional instability.
Fujairah port aims to bypass the Strait of Hormuz
To address these challenges, DP World is working on plans for a new logistics complex in Fujairah, the UAE’s only emirate with direct access to the Gulf of Oman. Because vessels can reach Fujairah without entering the Strait of Hormuz, the location offers a strategic advantage for international shipping.
The proposed project includes the construction of a modern container terminal along with supporting port infrastructure capable of handling a broad range of cargo. Once freight arrives in Fujairah, containers are expected to be transported by road to Dubai, Abu Dhabi, and other Gulf destinations, ensuring that supply chains remain operational even if maritime traffic through the strait is disrupted.
Industry sources indicate that the construction of the new port could be completed in approximately 18 months, provided the project proceeds according to schedule. Once operational, the facility is expected to become an important addition to the country’s expanding transportation network.
UAE pursues long-term logistics diversification
Officials have emphasized that the new port is intended as a permanent component of the nation’s logistics strategy rather than a temporary response to current geopolitical tensions. UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi has stated that the country will continue developing alternative trade corridors regardless of whether shipping conditions in the Strait of Hormuz eventually return to normal.
The broader modernization effort extends beyond Fujairah. Port operator Gulftainer has announced plans to invest approximately $2 billion in expanding Khorfakkan Port, another strategically positioned facility on the Gulf of Oman. The investment is expected to increase cargo-handling capacity, improve operational efficiency, and reinforce the resilience of the UAE’s maritime infrastructure.
Together, these projects reflect a long-term strategy to adapt to evolving geopolitical risks while protecting the country’s role in global commerce. By expanding port capacity outside the Strait of Hormuz, the UAE aims to reduce exposure to regional disruptions, strengthen supply chain reliability, and enhance its position as one of the Middle East’s leading logistics and transportation hubs.