Gulf countries are moving to reduce their reliance on the Strait of Hormuz as conflict with Iran continues to disrupt shipping. Dubai-based port operator DP World is in talks to develop new facilities in the coastal emirate of Fujairah, aiming to ease pressure on its flagship Jebel Ali port, according to the Financial Times.
Jebel Ali, opened in 1977, has been central to the UAE's role as a trade and finance hub. However, it was recently set alight by debris from an Iranian missile. The UAE has been the hardest hit Gulf state, with nearly 3,000 drones and missiles striking its territory since US-Israeli attacks on Iran began on 28 February. SolAbility, a Swiss-Korean think tank, estimates a possible global GDP loss of $3.05 trillion under a “phantom ceasefire” scenario.
The strategic waterway carries around 20 per cent of global oil supply, but Oman is also adapting. Its logistics provider Asyad Group and France's CMA CGM have announced a $400m partnership to build a multipurpose terminal at Sohar port, on the Gulf of Oman. CMA CGM chief executive Rodolphe Saade said the terminal would support “reliable inland access to key trade corridors” and provide “greater resilience and efficiency for our customers’ supply chains”.
Meanwhile, the UAE ended its 59-year membership of OPEC on 28 April 2026, a move described by the Middle East Council of Global Affairs as “one of the most consequential shifts in global energy governance since Russian joined the OPEC coalition in 2016”. In May, Crown Prince Sheikh Khaled bin Mohamed bin Zayed announced the acceleration of the West-East pipeline, which would double export capacity through Fujairah by 2027, according to Bloomberg. Saudi Arabia is reportedly considering expanding its East-West pipeline to the Red Sea, with sources telling Reuters that this would allow oil to be transported without crossing Hormuz.
However, Kuwait, Bahrain and Qatar remain locked into the Persian Gulf with no alternative coastline. The International Energy Agency estimates that 93 per cent of their oil exports depend on the strait. DP World has insisted that Jebel Ali will not be abandoned, with a senior official saying: “Jebel Ali will continue to be Jebel Ali. It will never be downsized.”
