Hormuz risk forces UAE to take new measures? Dubai reportedly plans to build a new port to bypass the Strait

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The situation in Hormuz is reshaping the infrastructure patterns of the Gulf, with Jebel Ali Port’s throughput plunging by more than 90%. Dubai’s largest port operator is forced to accelerate plans for alternative shipping routes.

On Monday, June 13th (Eastern US time), UK media cited insiders saying that DP World is planning to build a new port and container terminal on the east coast of the UAE. The aim is to reduce reliance on its flagship Jebel Ali port and provide a land-based alternative route for freight bypassing the Strait of Hormuz.

Insiders say DP World is negotiating to develop a multifunctional new port on the coast of Fujairah and build new terminals inside existing UAE ports. The company has begun discussions with government officials about the terms list, but the project structure and financing plan have not been finalized. A senior executive said the new port could be completed in as little as a year and a half.

DP World declined to confirm the specific details of the east coast project but stated it is "formulating diversified plans to respond to this (Strait of Hormuz shipping) disruption."

This plan reflects the profound impact of the Hormuz Strait situation on Gulf trade infrastructure. Since the US-Iran conflict erupted, Jebel Ali’s port throughput has declined by as much as 95%, placing structural pressure on the UAE’s core logistics hub that its economy depends on.

Ratings agency Moody’s estimates that, affected by the conflict, DP World's overall profits this year will drop to about $5.9 billion, almost an 11% decrease from $6.6 billion in 2025.

Jebel Ali Under Pressure, East Coast Ports See Worsening Congestion

Last year, Jebel Ali Port handled 15.6 million TEUs, making it a key pillar of Dubai's status as a global logistics and transshipment hub, especially playing a critical role in trade passages between China and Africa. However, its location means heavy reliance on the narrow waterway between Iran and Oman.

Insiders told UK media that since Iran closed the Strait following the outbreak of the US-Israel-Iran conflict, Jebel Ali's activity has fallen by 90-95%. Early in the war, the port experienced fires caused by missile interception debris.

Before the conflict, the Strait of Hormuz saw about 135 ships pass daily, but after the US and Iran signed a temporary ceasefire and the Strait briefly reopened, the daily volume barely surpassed 40 ships. In the past week, retaliatory attacks have escalated, and Iran launched further assaults on commercial shipping in the waterway, causing traffic to plummet again.

Consulting firm Vespucci Maritime CEO Lars Jensen said: "The impact on Jebel Ali is likely to be significant and permanent."

Facing this pressure, DP World has begun shifting part of its cargo from Jebel Ali to Fujairah and nearby Khor Fakkan ports, but these two ports are now severely congested due to surging demand amid the crisis.

New Port Plan: Defensive Layout, Jebel Ali Will Not Be Replaced

The strategic logic of the new port project is to expand port capacity in the Gulf of Oman, allowing containers to enter and exit the UAE without passing through the Strait of Hormuz, then be transferred by land to Dubai, Abu Dhabi, and other Gulf states.

Insiders reveal that DP World will invest hundreds of millions of dollars in new facilities initially, with further investment depending on additional capacity needs. A senior executive said: “We have our own plans and have been very active in exploring the east coast. This is a defensive move in case the situation worsens.”

However, several Gulf officials stress that eastward expansion does not mean Jebel Ali will be fully replaced. After decades of development, the port has formed an integrated system covering economic free zones, warehousing, and heavy industry. A DP World executive said: "Jebel Ali will remain Jebel Ali, and its scale will never shrink."

In addition, Fujairah itself already holds strategic importance in UAE energy infrastructure—Abu Dhabi exports some crude oil through Fujairah and plans to further increase exports bypassing Hormuz.

Intensifying Industry Competition, Accelerated Restructuring of Regional Infrastructure

DP World’s east coast layout is not an isolated case and reflects a systemic reassessment of trade infrastructure across the Gulf region.

Meanwhile, Sharjah port operator Gulftainer is advancing expansion plans at Khor Fakkan port. Earlier this month, the company announced a $2 billion investment to increase the port’s throughput capacity, and this port is also located on the UAE’s east coast.

For investors, this restructuring means the strategic value of east coast port assets in the UAE is rising rapidly, while assets dependent on smooth operations through the Strait of Hormuz are facing ongoing uncertainties. DP World's plan marks the most profound geopolitical reshaping of Dubai's underlying logic as a global trade hub since it built the port.

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