Inside UAE's New Plan To Future-Proof Trade Beyond Strait Of Hormuz
Inside UAE's New Plan To Future-Proof Trade Beyond Strait Of Hormuz Published By, Last Updated: July 13, 2026, 22:18 IST Amid prolonged Strait of Hormuz
Inside UAE's New Plan To Future-Proof Trade Beyond Strait Of Hormuz Published By, Last Updated: July 13, 2026, 22:18 IST Amid prolonged Strait of Hormuz disruptions, DP World plans a new UAE east coast port to safeguard trade and reduce dependence on Jebel Ali. The move comes after months of disruption in the Strait of Hormuz, one of the world's most critical maritime trade routes. Dubai-based logistics giant DP World is planning to build a new port and container terminal on the UAE’s east coast as part of efforts to reduce its dependence on Jebel Ali and mitigate risks arising from the prolonged disruption in the Strait of Hormuz, according to a report by Financial Times. The company is considering the development of a new multipurpose port in Fujairah, along with a container terminal at an existing harbour on the UAE’s eastern seaboard. While the proposed project could be completed within 18 months, its financing structure and final design are yet to be determined. Why DP World Is Looking Beyond Jebel Ali The move comes after months of disruption in the Strait of Hormuz, one of the world’s most critical maritime trade routes.
According to the report, activity at Jebel Ali—the Middle East’s largest container port—plunged by as much as 90-95% after Iran closed the Strait in response to US-Israeli military action. The disruption has forced shipping and logistics companies across the Gulf to seek alternative routes and facilities. While the new project would expand the UAE’s east coast capacity, Gulf officials stressed that it is not intended to replace Jebel Ali, which remains the region’s premier logistics hub. “Jebel Ali will continue to be Jebel Ali. It will never be downsized," a senior DP World official told the Financial Times. UAE East Coast Ports Under Pressure Since the conflict escalated, DP World has increasingly diverted cargo from Jebel Ali to facilities on the UAE’s east coast, including Fujairah and nearby Khor Fakkan. The shift has led to significant congestion at both ports as businesses scramble to maintain trade flows while avoiding the Strait of Hormuz. Over the past two decades, DP World has evolved into one of the UAE’s most influential global companies, operating ports and logistics networks across multiple continents.
Despite its international footprint, Jebel Ali remains the company’s flagship asset and a cornerstone of Dubai’s economy. Any substantial redistribution of cargo away from Jebel Ali would therefore represent a major strategic shift for Dubai, whose emergence as a global trade and financial centre has been closely linked to the port’s success. What Is UAE’s Strategy? DP World’s expansion plans align with a broader UAE strategy aimed at reducing the country’s dependence on the Strait of Hormuz, a narrow waterway through which a significant share of global oil and trade shipments pass. Commercial shipping through the Strait has faced repeated disruptions since the outbreak of hostilities between Iran and the US-Israel alliance. According to the report, Iran has launched nearly 3,000 drones and missiles at the UAE since the conflict began in late February, more than against any other country in the region. In one incident during the early stages of the conflict, debris from an intercepted missile sparked a fire near Jebel Ali, authorities said. The push to expand East Coast infrastructure is not limited to DP World.
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