DP World is planning to develop a new multipurpose port and container terminal on the east coast of the United Arab Emirates as part of a strategy to reduce its dependence on the Strait of Hormuz, one of the world’s most critical yet geopolitically sensitive shipping routes.
According to the Financial Times, the Dubai-based port operator is in discussions with UAE authorities to build the new facility in Fujairah, on the Gulf of Oman. The project would complement the existing port infrastructure in the emirate and provide a direct gateway to the Indian Ocean, allowing cargo to bypass the Strait of Hormuz before being transported by road to Dubai, Abu Dhabi and other destinations across the Arabian Peninsula.
DP World Eyes UAE East CoastAlternative to Jebel Ali
The proposed development is intended to strengthen supply chain resilience rather than replace DP World’s flagship Jebel Ali Port, one of the world’s busiest container hubs and a key centre for re-export trade between Asia and Africa. Company officials have described the initiative as a defensive measure designed to safeguard operations if disruptions in the Persian Gulf continue.
The need for an alternative route became evident during recent regional tensions, when security concerns and conflict led to severe disruptions in shipping through the Strait of Hormuz. Cargo volumes at Jebel Ali reportedly fell by as much as 90-95%, prompting DP World to divert vessels to east coast ports such as Fujairah and Khor Fakkan, which subsequently experienced congestion.
Investment and Timeline
The project is expected to require an initial investment worth several hundred million dollars, with additional funding to be committed as demand grows. Once financial agreements and the project framework are finalised with government authorities, construction of the new facilities could be completed within approximately 18 months.
The port expansion aligns with broader UAE efforts to strengthen trade and energy infrastructure. The government is accelerating work on a pipeline that would increase crude oil exports from Fujairah without relying on the Strait of Hormuz. Meanwhile, Sharjah-based port operator Gulftainer has announced plans to invest around $2 billion to expand container handling capacity at Khor Fakkan Port.
Shipping Challenges Continue
Commercial shipping through the Strait of Hormuz has declined sharply amid ongoing security concerns. Average daily vessel traffic has reportedly fallen from around 135 ships before the recent hostilities to roughly 40 vessels per day.
The disruption is also expected to affect DP World’s financial performance. Moody’s projects the company’s annual revenue will decline from $6.6 billion in fiscal year 2025 to about $5.9 billion this year, reflecting the continued impact of regional instability on global trade flows.
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