The UAE says it is working towards eliminating its reliance on the Strait of Hormuz, regardless of whether the strategic waterway fully reopens after the US-Iran ceasefire.
The country is expanding eastern ports such as Fujairah, Khor Fakkan and Dibba while investing in new pipelines, rail links and road networks to strengthen alternative export routes.
The Iran conflict highlighted the risks associated with Hormuz, through which nearly 20% of global oil and LNG trade previously passed, prompting the UAE to rethink its long-term trade and energy strategy.
UAE Bets Billions to End Reliance on World's Most Critical Oil Chokepoint
The UAE is accelerating investments in ports, pipelines and transport infrastructure as it seeks to reduce its reliance on the Strait of Hormuz following disruptions caused by the Iran conflict and growing concerns over energy security
Iran sits astride the Strait of Hormuz, the narrow chokepoint through which 20% of global oil supply IMAGO / piemags
Summary
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As global attention remains focused on the full reopening of the Strait of Hormuz following the US-Iran ceasefire, the United Arab Emirates (UAE) is pursuing an ambitious strategy to reduce its dependence on one of the world's most critical maritime chokepoints, Bloomberg reported.
"We're moving toward having zero Hormuz dependency and that's regardless of whether it's open or not," UAE Minister of Foreign Trade Thani Al Zeyoudi said according to the report. "It's going to open and we hope that will happen quickly, but we will not stop the new plan."
The disruption of shipping through the Strait of Hormuz during the Iran conflict underscored the vulnerability of global energy and commodity supply chains.
Before the war, nearly a fifth of the world's crude oil and liquefied natural gas (LNG) trade passed through the waterway, making it a critical artery for global commerce.
The UAE has already managed to partially bypass the strait using an existing pipeline linking its oil fields to Fujairah on the Gulf of Oman coast. The 1.5 million barrel-per-day pipeline enabled the country to continue exporting crude despite disruptions to maritime traffic.
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To further strengthen its energy security, the UAE is planning a major expansion of its eastern ports, including Dibba, Fujairah and Khor Fakkan, all located outside the Strait of Hormuz. According to Al Zeyoudi, the country also plans to build at least one additional port on its eastern coastline.
The infrastructure push will be accompanied by significant investments in pipelines, railways and road networks to improve connectivity between the eastern ports and the country's oil and gas facilities.
The UAE is also accelerating plans for a second pipeline that would double crude export capacity through Fujairah and is evaluating the construction of a third petroleum pipeline.
While no timeline or investment figure has been disclosed, Al Zeyoudi acknowledged that the projects would require billions of dollars and remain in the planning stage.
The strategy, however, faces challenges, the Bloomberg report said. While pipelines could eventually allow the UAE to reroute much of its crude and refined fuel exports, redirecting other commodities such as LNG and aluminium will be more difficult.
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The country also remains heavily dependent on Gulf ports such as Jebel Ali and Khalifa Port, key hubs for imports and regional trade.
Despite its diversification efforts, the UAE continues to support the reopening of the Strait of Hormuz and has repeatedly called for unrestricted maritime access.
In a statement this week, the government said the "uninterrupted flow of traffic through the Strait of Hormuz" remains essential for regional stability, global trade and economic prosperity.
The latest plans highlight how the Iran conflict has prompted Gulf nations to reassess long-term energy security and supply-chain resilience in an increasingly uncertain geopolitical environment.