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The UAE’s multinational logistics company DP World is planning to build a new port on the country’s east coast to reduce its dependence on the Strait of Hormuz. The plan includes developing a new multipurpose port and a new container terminal at the existing Fujairah Port, according to the Financial Times.
The report said the initiative is part of a broader strategy to strengthen the UAE’s supply chain against regional instability and reduce reliance on the Strait of Hormuz. The move follows recent tensions involving Iran and the United States, which have heightened concerns over potential disruptions to shipping through the strategic waterway.
Once operational, the new port will allow cargo to enter and leave the UAE through the Gulf of Oman without passing through the Strait of Hormuz. Goods will then be transported by road to Dubai, Abu Dhabi, and other Gulf countries.
DP World is currently in discussions with relevant UAE authorities over the project’s terms and conditions. However, the project’s structure and financing have yet to be finalized.
A senior DP World executive said the new port could be completed within 18 months.
Following the closure of the Strait of Hormuz in late February, operations at the UAE’s Jebel Ali Port reportedly dropped by 90% to 95%. The disruption prompted DP World to accelerate efforts to develop alternative trade routes and infrastructure.
The company emphasized that the new port is not intended to diminish the importance of Jebel Ali Port. Instead, it said the new facilities will complement existing infrastructure, with additional capacity to be added in the future if required.