Dubai-based DP World is preparing to develop a multipurpose port and container terminal in Fujairah, creating a new trade route that would allow cargo to reach the UAE without passing through the Strait of Hormuz.The proposed facility on the Gulf of Oman coast would handle containers and other cargo before goods are moved by road or rail to Dubai, Abu Dhabi and other commercial centres. Initial investment is expected to run into hundreds of millions of dollars, with the first phase potentially completed within 18 months once final approvals and construction arrangements are secured.
The project reflects a broader UAE strategy to reduce dependence on the Strait of Hormuz, the narrow maritime passage linking Gulf ports with the Arabian Sea. Jebel Ali, DP World’s flagship port in Dubai and one of the world’s largest container hubs, lies inside the strait and remains exposed to any blockade, military escalation or prolonged disruption affecting the waterway.
Traffic through Jebel Ali fell sharply when hostilities involving Iran restricted commercial shipping through Hormuz. At the height of the disruption, activity at the port dropped by as much as 95 per cent, forcing importers to divert goods through eastern UAE terminals and transport them overland.
DP World’s planned Fujairah development would provide an alternative gateway rather than replace Jebel Ali. The Dubai port is expected to remain the country’s principal container and logistics centre because of its scale, free-zone infrastructure, industrial clusters and global shipping connections. The eastern facility would instead serve as a strategic backup and absorb cargo during emergencies.
Fujairah occupies a critical position outside the Strait of Hormuz. Its deep-water coastline already hosts oil storage terminals, bunkering facilities and crude export infrastructure. The existing Habshan-Fujairah pipeline can carry up to 1.8 million barrels of oil a day from Abu Dhabi’s production areas to the Gulf of Oman, allowing exports to avoid the strait.
A second pipeline is being accelerated with a target of entering operation in 2027. It is designed to double the amount of crude that can be exported through Fujairah, strengthening the UAE’s ability to maintain energy shipments during periods of maritime instability.
The container-port proposal extends that strategy beyond oil. UAE planners are seeking reliable alternative routes for food, manufactured goods, raw materials, petrochemicals and liquefied natural gas. New roads, railways, pipelines and inland logistics centres are expected to connect eastern ports with industrial and population centres across the country.
The government has set an objective of reducing dependence on Hormuz to zero, regardless of whether the waterway remains open. Expansion plans cover Fujairah, Dibba and Khor Fakkan, while feasibility studies are under way for at least one additional harbour on the eastern coastline.
Competition is also increasing between port operators. Sharjah-based Gulftainer is expanding Khor Fakkan Container Terminal, currently the UAE’s main fully operational container facility outside Hormuz. The terminal is being developed to handle more than 10 million twenty-foot equivalent units, supported by inland logistics capacity at Sajaa and Al Dhaid.
Khor Fakkan’s weekly container movements rose from about 8,000 units before the regional conflict to as many as 65,000 after shipping was diverted from Gulf terminals. Its daily trucking capacity increased from roughly 100 vehicles to about 8,500, placing heavy pressure on roads, customs facilities and storage areas.
The expansion includes 17-metre-deep berths and 21 high-performance ship-to-shore cranes. Inland logistics parks are intended to prevent congestion at the mountainous coastal site, where limited land restricts the amount of cargo that can be stored beside the terminal.
DP World’s entry into Fujairah would bring greater capacity and direct competition to the eastern seaboard. The company operates ports and logistics businesses across more than 70 countries and has extensive experience integrating maritime terminals with warehouses, free zones and overland transport networks.
The new facility could also reshape regional shipping patterns. Cargo from Asia and East Africa could be unloaded in Fujairah and transported across the UAE without entering the Gulf. Shipping companies would save time and insurance costs during periods when Hormuz is considered unsafe, although overland transfers would add handling and transport expenses.
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