DP World to construct two UAE container terminals to bypass Strait of Hormuz

DP World has secured a preliminary 50-year concession to build two deepwater container terminals in Fujairah, United Arab Emirates, on the Gulf of Oman, effectively bypassing the Strait of Hormuz. The project, announced on July 22, 2026, includes the Al Rugaylat container and multipurpose terminal and the Dibba general cargo terminal, with a combined annual capacity of 2.5 million 20-foot containers, 190,000 autos, and up to 5.3 million tons of general cargo. The terminals will connect to DP World’s flagship Jebel Ali port via an inland logistics network, with phased development expected to take up to 30 months. The move aligns with the UAE’s broader strategy to reduce reliance on the Hormuz Strait, a critical chokepoint for global trade, following disruptions during regional conflicts. DP World’s Chairman Essa Kazim emphasized the UAE’s long-standing role in global trade and the strategic importance of the new terminals in reinforcing the country’s logistics dominance. The announcement comes amid heightened tensions in the region, which have constrained container volumes through Jebel Ali, prompting alternative logistics solutions such as trucking and rail, though these remain limited in capacity.