Dubai’s DP World Plans East Coast Port to Bypass Strait of Hormuz
The new multipurpose facility in Fujairah aims to reduce reliance on the disrupted waterway, as Gulf states accelerate alternative trade routes amid US-Iran tensions.
DP World, the Dubai-based port operator, is in advanced talks to build a new multipurpose port and container terminal on the UAE’s east coast, a move designed to create a trade corridor that bypasses the Strait of Hormuz, the Financial Times reported on Monday, citing people familiar with the matter. The project, centred on the emirate of Fujairah on the Gulf of Oman, would allow cargo to enter the UAE without transiting the strait and then be moved overland to Dubai, Abu Dhabi and neighbouring Gulf markets. Activity at Jebel Ali, the region’s largest container port, has fallen by 90 to 95 per cent since Iran closed the waterway in late February in response to US-Israeli military strikes, according to the same sources, prompting DP World to accelerate contingency planning.
According to people briefed on the discussions, the company is negotiating a term sheet with Fujairah authorities, though the financing structure and final timeline remain unsettled. A senior DP World official told the Financial Times the new port could be completed within 18 months and described the initiative as “defensive in case things go wrong”. The company itself declined to confirm details but said “plans are in the works around diversification to get through this disruption”. Gulf officials stress that the east coast expansion is not intended to replace Jebel Ali, which has been developed over decades into a logistics hub with a vast free zone and heavy industrial facilities. “Jebel Ali will continue to be Jebel Ali,” the senior official said, adding that it “will never be downsized”.
The Fujairah plan forms part of a wider regional push to reduce strategic dependence on the strait. Saudi Arabia and other Gulf states have been advancing pipeline projects to move oil and gas overland to Red Sea and Mediterranean terminals. In the UAE, the neighbouring emirate of Sharjah’s Gulftainer has announced a $2 billion investment to expand capacity at the Khor Fakkan container terminal, also on the east coast. The shift has already caused heavy congestion at Fujairah and Khor Fakkan as cargo is diverted from Jebel Ali. Israeli Prime Minister Benjamin Netanyahu, in an interview with Newsmax, proposed rerouting Gulf energy exports via pipelines to the Mediterranean, potentially through the India-Middle East-Europe Corridor, though Saudi officials have since signalled a preference for a route that bypasses Israeli territory, according to sources cited by the Jerusalem Post.
The Strait of Hormuz normally carries about 20 per cent of global oil supplies and up to 30 per cent of liquefied natural gas exports. Its closure by Iran, accompanied by nearly 3,000 drone and missile attacks on the UAE, has left commercial shipping companies unable to obtain affordable insurance, even after a partial reopening for vessels from friendly states and a temporary truce. US and Omani mediators have proposed unfreezing Iranian assets in exchange for ending transit fees, but Tehran has rejected those terms, according to regional diplomats. The DP World project remains at the negotiation stage, with hundreds of millions of dollars expected for the initial phase and further investment contingent on demand. No final agreement has been signed, and the company’s talks with Fujairah officials are continuing.
| Iranian & allied press | −0.30 | critical |
|---|---|---|
| Israeli press | +0.30 | aligned |
| Atlantic / Anglosphere press | 0.00 | neutral |
| Russian & CIS press | 0.00 | neutral |
Iran denounces the project as a hostile move that bypasses its sovereignty over the Persian Gulf.
By attributing the decision to the US-Iran war, the Iranian regime presents itself as a victim of external aggression, legitimizing its own position.
The Iranian account omits the 90-95% drop in Jebel Ali activity, which would have highlighted the economic vulnerability of the Emirates and the real necessity of the project.
Israel supports the UAE's move as a legitimate self-defense against the Iranian threat to close the Strait of Hormuz.
By presenting the Iranian closure as a fait accompli, an urgency is created that justifies the port construction as a necessary countermeasure.
The Israeli account omits the context of the US-Iran war, which could have downplayed Iran's responsibility.
The Atlantic analysis frames the project as a strategic consequence of the US-Iran war, without taking sides.
By using the term 'major shift' and placing the project after the war, it normalizes the idea that conflict is the driver of change.
The Atlantic account omits the precise economic data on the decline of Jebel Ali, which would have added a commercial dimension to the narrative.
Russia describes the project as a normal commercial initiative by DP World, depoliticizing the matter.
By reporting only technical facts and omitting all geopolitical references, the decision is presented as purely economic.
The Russian account omits both the war context and the impact on Jebel Ali, removing all tension from the narrative.
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