DP World, an Emirati multinational logistics company, is reportedly planning to shift its operations to the east coast of the United Arab Emirates. It is an action taken to reduce Dubai's reliance on its flagship Jebel Ali hub and the Strait of Hormuz.
Background of the construction plan
According to a Financial Times report, DP World is to develop a brand new multipurpose port in the coastal area of Fujairah and a new container terminal at the existing harbour in the same emirate.
DP World's plans align with Abu Dhabi's broader plan to bulletproof its economy against future unrest in the Middle East by reducing its dependence on the Strait of Hormuz, where Iranian and US blockades have disrupted shipping.
The company is now reportedly discussing a term sheet with Emirati officials. The structure and financing of the project are yet to be finalised. The company has not confirmed any details of the new project but said that "there are plans in the works around diversification to get through this disruption."
Why the UAE plans a new port
Several strategic and economic factors drive the proposed Fujairah project:
Reducing reliance on the Strait of Hormuz: Nearly all cargo entering Jebel Ali must pass through the strait, making UAE trade vulnerable to military conflict, blockades, or other disruptions.
Bypassing geopolitical chokepoints: Fujairah is located on the Gulf of Oman, providing direct access to the Arabian Sea and the Indian Ocean without requiring ships to transit the Strait of Hormuz.
Protecting supply chains: The new port would ensure cargo movement continues even if shipping through the Strait of Hormuz is interrupted, strengthening the UAE's logistics resilience.
Diversifying national port infrastructure: Rather than relying heavily on Jebel Ali, the UAE aims to create multiple logistics hubs capable of handling global trade during emergencies.
Supporting long-term trade growth: Container traffic in the Gulf is expected to continue growing, and additional port capacity would help meet future demand without overburdening existing facilities.
Enhancing national security: The UAE has faced repeated missile and drone threats during regional conflicts, highlighting the need for critical infrastructure away from high-risk areas.
Strengthening DP World's global network: A new east coast hub would improve connectivity with Asian, African, and European shipping routes while providing operational flexibility during crises.
Reason behind the port need
UAE already operates several world-class ports, led by Dubai's Jebel Ali Port, the Middle East's largest container hub. Other key facilities include Abu Dhabi's Khalifa Port, Sharjah's Khor Fakkan Container Terminal, and the Port of Fujairah on the Gulf of Oman, which provides direct access to the Indian Ocean without transiting the Strait of Hormuz.
Iran closed the narrow passage, the Strait of Hormuz, at the end of February in response to US-Israeli strikes. Activity at Jebel Ali, the region's largest container port, has fallen by 90 per cent and 95 per cent, pushing the port operator to seek alternatives to the waterway.
UAE has also been one of the most frequent targets of Iran during the chaos, with nearly 3,000 drones or missiles more than any other country.
Jebel Ali was also affected early in the conflict when a fire broke out at the port, which officials linked to debris from a missile interception.
Officials also state that the new port would not shut down the already available port or fully replace it. The officials said that "Jebel Ali will continue to be Jebel Ali. It will never be downsized," a senior official at the company told the Financial Times.
They said that DP World would initially develop the new facilities, but that could rise over time depending on how much additional capacity was required.
"We do have our own plan, and we've been very active in terms of looking at the eastern coast as far as DP World is concerned," the senior official said. "It's defensive in case things go wrong," he said.
If approved, the Fujairah expansion would mark one of the UAE's most significant logistics investments in recent years, strengthening its position as a global maritime and trade hub while reducing exposure to one of the world's most strategically sensitive shipping corridors.
