DP World to Build New Port in Fujairah to Bypass Strait of Hormuz

Dubai government-owned logistics giant DP World is planning to develop a new port and container terminal on the eastern coast of the United Arab Emirates, a strategic move aimed at reducing dependency on the Strait of Hormuz amid rising regional security fears. According to a report by the Financial Times, the company is in talks to build a new multipurpose port in Fujairah, as well as a container terminal at the emirate’s existing port. The project marks a significant diversification effort for DP World, which has historically concentrated its operations at Jebel Ali Port, the largest container hub in the Middle East. The plan comes after Iran once again closed the Strait of Hormuz, the strategic waterway through which nearly 20 per cent of the world’s oil and gas supplies pass. The closure coincided with the United States reimposing a naval blockade amid escalating tensions. Since the outbreak of the US-Israel-Iran conflict in February, the Strait of Hormuz has become highly vulnerable to disruption. Reports indicate that activity at Jebel Ali plummeted by as much as 90 to 95 per cent after Iran closed the strait in response to US-Israeli military action, prompting DP World to accelerate plans for an alternative trade corridor. The proposed new port would be located on the Gulf of Oman, allowing cargo to enter and exit the UAE without transiting the Strait of Hormuz. Containers could then be transported overland to Dubai, Abu Dhabi, and other Gulf destinations. A senior company official stated that the facility is targeted to become operational within 18 months, with initial investment expected to reach hundreds of millions of US dollars and potential for further expansion based on future demand. Despite the eastward expansion, DP World officials stressed that the project would not replace Jebel Ali, which remains a cornerstone of Dubai’s economy with its free trade zone and extensive logistics infrastructure. ‘Jebel Ali will remain Jebel Ali. Its capacity will never be reduced,’ a senior DP World official asserted, describing the Fujairah move as a defensive measure to secure the Emirates’ trade flows from future disruptions. DP World’s plan also emerges amid growing competition on the UAE’s eastern coast. Sharjah-based logistics operator Gulftainer recently announced a US$2 billion investment programme to expand capacity at the port of Khor Fakkan, another major container hub on the Gulf of Oman. Fujairah already holds strategic importance for the Emirates’ energy sector as a key export point for Abu Dhabi crude oil that bypasses the Strait of Hormuz. The new DP World project is expected to further strengthen the emirate’s role in the national trade and logistics network.