UAE to Build New Port to Reduce Dependence on the Strait of Hormuz

Darwin, 17 July : The United Arab Emirates (UAE) plans to build a new multipurpose seaport and a container terminal on the country’s eastern coast. Once completed, the project will reduce the UAE’s reliance on Dubai’s main Jebel Ali Port while creating an alternative maritime trade route that bypasses the Strait of Hormuz.

Dubai-based port operator DP World will oversee the construction of the project. The information was reported by UKRAgroConsult, citing the Financial Times.

The proposed logistics corridor will enable import and export containers to be transported without passing through the Strait of Hormuz. The cargo will then be delivered by road and rail to Dubai, Abu Dhabi, and neighboring countries.

The project has gained significant importance amid rising tensions surrounding the Strait of Hormuz. According to the Financial Times, the United States and Israel launched airstrikes against Iran on February 28. In response, Iran effectively halted shipping through the Strait of Hormuz. The closure of this vital international waterway caused operations at Jebel Ali Port, the largest container port in the Middle East, to decline by 90 to 95 percent.

DP World said it aims to complete construction of the new port within approximately 18 months. Once operational, the facility is expected to strengthen the UAE’s logistics network while significantly reducing the country’s dependence on the Strait of Hormuz for its foreign trade.

Over the past two decades, DP World has grown into one of the UAE’s leading global companies by developing ports and logistics networks around the world. Among its assets, Jebel Ali Port is the company’s most important facility and has played a pivotal role in establishing Dubai as a global trade and financial hub. However, relocating part of the port’s operations outside Dubai would represent a major strategic shift for the UAE.

The Financial Times reported that Abu Dhabi has adopted a broader strategy to reduce the country’s dependence on the Strait of Hormuz in order to mitigate future geopolitical risks in the Middle East. DP World’s new port initiative forms part of that strategy, which comes amid disruptions to shipping in the Strait of Hormuz caused by tensions involving Iran and the United States.