Dubai plans new east-coast port to bypass Hormuz blockade as Jebel Ali traffic collapses 90–95%
DP World is negotiating a multi-purpose port and container terminal on the UAE's Gulf of Oman coast, aiming to route cargo around the Iranian-blockaded Strait of Hormuz after throughput at its flagship Jebel Ali hub collapsed by 90 to 95 percent.
The choke point
Since late February, the Strait of Hormuz has shifted from the world's most critical oil transit lane to a near-blockaded minefield. Iran closed the strait in response to US-Israeli strikes, and although a brief peace accord reopened it, daily crossings have fallen to roughly 40 vessels, down from a peacetime norm of 135. US President Donald Trump has added a 20 percent levy on freight passing through the waterway, compounding the pressure on Gulf economies.
Jebel Ali's collapse
DP World's flagship Jebel Ali port, the largest container hub in the region, saw throughput plunge by 90 to 95 percent after the closure. A missile-interception fire in March added physical damage to the commercial blow. The operator has already diverted cargo to the east-coast ports of Fujairah and Khor Fakkan, but a senior executive told the Financial Times that Jebel Ali "will never be downsized" and remains the group's crown jewel.
The Fujairah solution
DP World is in talks to build a new multi-purpose port in the Fujairah coastal zone and an additional terminal at the existing Fujairah port, the Financial Times reported, citing internal sources. The location on the Gulf of Oman allows container ships to discharge without transiting Hormuz; boxes would then move by truck to Dubai, Abu Dhabi and neighbouring Gulf states. A senior company representative told the FT the new port could be ready in 18 months, with an initial investment of several hundred million US dollars.
These plans are both an immediate measure and a medium- and long-term plan.
Financial stakes
Moody's projects DP World's profit will slip from $6.6 billion in 2025 to $5.9 billion this year. The Fujairah expansion is framed as a hedge against further disruption. "We have our own plan and we are actively studying the east coast," a senior DP World official told the FT. "It is a precautionary measure in case things go wrong."
Wider Gulf scramble
Saudi Arabia is already routing about 4 million barrels per day of crude through its east-west pipeline network to bypass Hormuz. The UAE government is pursuing a broader initiative to insulate its economy from future hostilities with Iran, which has fired nearly 3,000 drones or missiles at the Emirates since the war began, more than at any other country. DP World confirmed to CNBC that "diversification plans are being developed to get through this disruption" without detailing the Fujairah project.
- Iran closes Strait of Hormuz in response to US-Israeli strikes; Jebel Ali traffic collapses 90–95%.
- Fire breaks out at Jebel Ali after missile-interception debris falls on the port.
- Brief peace accord reopens Hormuz, but daily crossings remain at roughly 40 vessels vs. a peacetime norm of 135.
- DP World confirms diversification plans; Financial Times reports negotiations for a new Fujairah port and terminal.
- New Fujairah port could be operational within 18 months, per a senior DP World representative.
What comes next
Construction could begin quickly once negotiations conclude, with the first phase targeted for completion within a year and a half. The project does not replace Jebel Ali but creates a parallel gateway that removes the Hormuz chokepoint from the container supply chain. For Dubai, which built its trade-and-finance hub status partly on Jebel Ali's growth, shifting capacity to the east coast marks a structural pivot forced by a war whose end nobody is willing to predict.
