UAE targets “zero” Hormuz dependency with multibillion-dollar port and pipeline push

The United Arab Emirates has launched an aggressive plan to eliminate its reliance on the Strait of Hormuz, a critical chokepoint for global energy shipments, following disruptions caused by regional conflict. Speaking to Bloomberg News, UAE Minister of Foreign Trade Thani Al Zeyoudi declared the country’s intent to achieve “zero Hormuz dependency” regardless of whether the strait reopens. “It’s going to open and we hope that will happen quickly, but we will not stop the new plan,” Al Zeyoudi stated. The closure of the strait since late February—triggered by U.S. and Israeli strikes on Iran—has exposed vulnerabilities in global supply chains, with about 20% of the world’s crude oil and liquefied natural gas (LNG) previously transiting through the waterway. The UAE’s strategy centers on expanding its eastern ports—Dibba, Fujairah, and Khor Fakkan—on the Gulf of Oman coast, alongside the construction of at least one new harbor. These efforts will be supported by multibillion-dollar investments in new pipelines, rail, and road networks to strengthen connections between eastern ports and the country’s oil and gas fields. The UAE is already accelerating plans to double crude export capacity via Fujairah through a second pipeline announced in mid-May, with discussions underway for a third petroleum pipeline. Additional infrastructure is being explored to facilitate the export of petrochemicals and LNG. While no cost or timeline has been disclosed—with feasibility studies still underway—Al Zeyoudi emphasized the urgency of addressing gaps exposed during the crisis. “During those tough times, you always identify your gaps and you start working on it,” he said. The UAE currently operates an LNG export terminal within the Persian Gulf (locally referred to as the Arabian Gulf) and is developing another project to more than double its export capacity. However, reducing Hormuz dependency presents challenges. While pipelines may eventually allow the UAE to redirect most crude and refined oil exports to eastern ports, commodities like LNG and aluminum are harder to reroute. The country remains heavily dependent on Gulf ports such as Jebel Ali—the world’s largest container hub outside Asia—for imports, and transporting goods from eastern ports to major cities like Dubai and Abu Dhabi would incur higher costs. To mitigate this, the UAE plans a major railway expansion, with Jebel Ali and Khalifa Port in Abu Dhabi continuing to serve as key redistribution hubs. The crisis has underscored the strait’s pivotal role in global trade, with Iran’s attacks on Gulf states—including the UAE—highlighting the fragility of regional stability. Despite partial success in bypassing Hormuz via existing pipelines and alternative routes, the UAE continues to advocate for the strait’s reopening, rejecting Iranian claims of post-war navigation fees. The UAE reiterated in a statement that “uninterrupted flow of traffic through the Strait of Hormuz” is essential for “advancing security, stability, and economic prosperity at both the regional and global levels.”