Men walk through the Strait of Hormuz off Bandar Abbas, Iran. Photo: AP
Dubai: In a move to strengthen the UAE’s trade resilience, Dubai is planning to build a new port that would bypass the Strait of Hormuz, according to a report by the Financial Times.
The proposed development, led by Dubai-based ports and logistics operator DP World, includes a new multipurpose port and a container terminal in Fujairah on the UAE’s east coast. The facilities would allow cargo to enter the country through the Gulf of Oman before being transported overland to Dubai, Abu Dhabi and neighbouring Gulf states, reducing reliance on the Strait of Hormuz.
The plan comes as shipping through the strategic waterway remains vulnerable following months of regional conflict. Although commercial traffic briefly resumed under an interim arrangement, renewed hostilities have continued to disrupt vessel movements along the route, which carries around one-fifth of global oil supplies.
According to the Financial Times, the project forms part of broader UAE efforts to strengthen the country’s logistics network and protect trade from future disruptions.
According to the report, DP World is in talks with government authorities over the proposed development, while the financing model and ownership structure are still being finalised. A senior company official told the newspaper the new facilities could be completed within about 18 months.
While declining to confirm details of the project, DP World said it was pursuing diversification plans to minimise the impact of continued shipping disruptions.
The report said operations at Jebel Ali Port fell sharply after shipping through the Strait of Hormuz was disrupted, prompting the company to accelerate plans for alternative trade routes. Officials, however, said the Fujairah project would complement rather than replace Jebel Ali, which remains the cornerstone of Dubai’s maritime trade and logistics network.
Before the conflict, around 135 vessels transited the Strait of Hormuz each day. Shipping volumes remain well below those levels as repeated attacks on commercial vessels continue to affect traffic through the waterway.
The report said the project would require an initial investment of hundreds of millions of dollars, with further expansion depending on future demand.
DP World has already redirected part of its cargo operations to ports on the UAE’s east coast, including Fujairah and Khor Fakkan, which have experienced increased traffic since disruptions intensified.
The expansion also comes as Sharjah-based Gulftainer advances a USD 2 billion investment to increase capacity at Khor Fakkan, underlining the growing strategic importance of the UAE’s east coast as an alternative trade gateway.
This post was last modified on July 15, 2026 2:35 pm