UAE Unveils Ambitious Plan to End Dependence on Strait of Hormuz
The United Arab Emirates is developing a comprehensive strategy to eliminate its reliance on the Strait of Hormuz, following recent disruptions that exposed vulnerabilities in Gulf trade and energy flows. UAE Minister of Foreign Trade Thani Al Zeyoudi confirmed the country is moving toward "zero Hormuz dependency," as reported by Bloomberg. This initiative comes as global markets await the full reopening of the strait after an interim peace deal between Iran and the United States.
Strategic Shift Amid Geopolitical Tensions
The Strait of Hormuz, through which approximately one-fifth of global crude oil and liquefied natural gas shipments passed before the conflict, has been disrupted since US and Israeli strikes on Iran began in late February. The UAE now seeks to mitigate such risks by diversifying its trade and energy routes.
Massive Infrastructure Expansion
At the heart of the UAE's plan is a major expansion of the eastern ports of Dibba, Fujairah, and Khor Fakkan, all located outside the strait on the Gulf of Oman coast. The country also plans to construct at least one new harbor along the same coastline, complemented by new pipelines, rail, and road networks to connect these eastern ports with oil and gas fields and petroleum facilities.
The UAE already operates a 1.5 million barrel-per-day pipeline that transports crude to Fujairah, partially bypassing Hormuz. In mid-May, the government announced an accelerated timeline for a second pipeline, aiming to double crude export capacity through Fujairah by 2027. Additionally, a third petroleum pipeline and other options are being studied to support exports of petrochemicals, LNG, and other energy products.
Challenges and Costs
Minister Al Zeyoudi did not provide a specific cost or timeline, noting that the projects are still in the feasibility stage. However, the infrastructure expansion is expected to require investments worth many billions of dollars. Reducing reliance on Hormuz remains challenging, as shifting LNG, aluminum, and other commodities away from Gulf ports is more complex than redirecting crude and refined oil. The UAE also depends heavily on ports inside the Gulf, particularly Dubai's Jebel Ali—one of the world's largest container hubs—for imports and redistribution.
Call for Uninterrupted Traffic
The UAE has repeatedly called for uninterrupted traffic through the Strait of Hormuz, emphasizing that the waterway is vital for regional and global security, stability, and economic prosperity. This new plan signals a broader strategic shift toward reducing exposure to geopolitical risks in the Gulf and strengthening alternative trade and energy routes outside the strait.
