Dubai plans new Fujairah port to bypass Strait of Hormuz

DP World, the Dubai-based port operator, is planning to build a new multipurpose port and container terminal on the UAE's eastern coast near Fujairah, according to a report published Monday by the Financial Times London Stock Exchange Group plc. The project would deepen the company's presence on the Gulf of Oman, allowing containers to enter and leave the country without passing through the Strait of Hormuz, the narrow waterway that has been subject to disruptions since the US-Iran conflict earlier this year.ft

The move represents a strategic pivot for DP World, whose flagship Jebel Ali Port in Dubai — one of the world's largest container facilities — sits inside the Persian Gulf and depends on the strait for maritime access.

A Response to Wartime Disruptions

The planned Fujairah port comes after months of crisis for Gulf shipping. In early 2026, the Strait of Hormuz was shut amid the Iran conflict, with spiraling tanker attacks cutting vessel traffic toward Gulf ports. Jebel Ali suffered a temporary shutdown in late February after a fire, though DP World resumed operations across all four terminals shortly after. Despite the restart, inbound vessel traffic remained reduced as regional maritime disruptions persisted.reuters+4

DP World had already begun routing cargo through alternative eastern ports. Under an arrangement introduced in March, ships could discharge containers at Khorfakkan Port or Fujairah Port on the Gulf of Oman, with goods then transported by bonded trucking to Jebel Ali for customs clearance. But Fujairah's existing capacity — less than one million TEU — proved insufficient to absorb the diverted volumes.freightwaves+4

Broader UAE Strategy

The new port plan fits within a wider UAE effort to reduce dependence on the Strait of Hormuz. In May, UAE Crown Prince Sheikh Khaled bin Mohamed bin Zayed announced an accelerated timeline for a West-East Pipeline that would boost oil export capacity through Fujairah, with operations expected by 2027. The government has also pursued expansion of eastern maritime gateways including ports in Dibba, Fujairah, and Khor Fakkan.aljazeera+1

DP World previously operated a concession at Fujairah Port but terminated that agreement in 2017. The Financial Times reported that the new project would be a separate, larger facility designed to handle container traffic at scale.cbnme+1

The company reported record financial results for 2025, with revenue rising 22 percent to $24.4 billion, even as the Hormuz crisis reshaped trade flows across the region. Freight analysis firm FreightWaves noted that the sole existing bypass — Etihad Rail to Fujairah — offered only about 50,000 TEU per year of relief, far short of what was needed.instagram+1

The planned port would mark one of the most consequential pieces of infrastructure to emerge from the Gulf conflict, potentially reshaping trade patterns that have centered on Jebel Ali for decades.