The UAE is taking a new strategic step through the agreement between Dubai World and the Fujairah Ports Authority to develop modern ports along the country’s eastern coast. The project is set to…
The UAE is taking a new strategic step through the agreement between Dubai World and the Fujairah Ports Authority to develop modern ports along the country’s eastern coast. The project is set to reshape the UAE’s position within the global trade system and strengthen its ability to safeguard its economic security amid rising tensions across critical maritime corridors, particularly the Strait of Hormuz and Bab Al Mandab.
The project will include the development of the Fujairah Marine Zone and Dibba Al Fujairah, as part of a broader vision to establish an integrated port system outside the Strait of Hormuz. This will enable the UAE to diversify its logistics options away from areas vulnerable to geopolitical tensions. Fujairah holds particular significance as one of the world’s largest oil storage hubs, with a capacity exceeding 10 million cubic metres, in addition to receiving thousands of vessels annually. With the new expansion, the port’s handling capacity is expected to increase by up to 60%, further strengthening its role as a regional competitor to major global hubs such as Singapore and Rotterdam.
The development of Dibba represents a complementary step, as the area is set to become a specialised hub for containers and general cargo. This will support the UAE’s re-export capabilities and strengthen trade links between Asia and Europe. The strategic distribution of roles between Fujairah and Dibba will create an integrated port network capable of accommodating the rapid growth in maritime trade.
Within the same framework, the latest expansion of Khor Fakkan Port will further strengthen the UAE’s maritime depth along the Asia–Europe trade route. The project aims to increase capacity by around 25% through the development of berths and the deepening of the draft to 18 metres, allowing the port to accommodate ultra-large container vessels. The expansion will also add modern storage yards designed to reduce handling times and improve operational efficiency. This will reinforce Khor Fakkan’s position as a major transshipment hub while complementing the roles of Fujairah and Dibba within an interconnected port network that gives the UAE greater logistical flexibility outside the Strait of Hormuz.
These expansions will also have a significant impact on the national economy. The logistics sector contributes approximately 14% of the UAE’s gross domestic product, while more than 65% of the country’s imports are re-exported to regional and international markets. Container handling in Fujairah is expected to rise to 1.2 million containers annually during the first phase, compared with around 300,000 at present, representing growth of more than 300%. The partnership with Dubai World is also expected to attract an additional USD 4–7 billion in investment over the next decade.
These developments also carry strategic importance for food security, as the UAE relies on imports to meet around 90% of its food requirements. Having strong ports outside the Strait of Hormuz reduces the risks of supply disruptions, particularly amid rising marine insurance costs or delays in shipments during periods of regional tension.
The expansions will also strengthen energy security. The UAE exports approximately 3.2 million barrels of oil per day, and by 2030, as much as 60% of these exports could be routed through outlets outside the Strait of Hormuz. This would give the country greater independence from potential threats affecting the Gulf.
These projects will also support the stability of global energy markets and provide importing countries such as China, India and Japan with greater confidence in the continuity of energy supplies. At the Gulf level, this integrated system could serve as a platform for broader cooperation in maritime security, particularly as other Gulf states face similar challenges related to the Strait of Hormuz.
Ultimately, the expansion of the ports of Fujairah, Khor Fakkan and Dibba represents a strategic investment that strengthens the UAE’s position as a global logistics power. It provides the country with greater resilience in confronting geopolitical crises with confidence and stability, while reinforcing its readiness for a new era of competition in global trade and energy.
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