Oil tanker in Strait of Hormuz
Oil tanker in Strait of HormuziStock

The United Arab Emirates is preparing a sweeping infrastructure program aimed at eliminating its dependence on the Strait of Hormuz, despite expectations that the strategic waterway will fully reopen following the signing of a peace agreement between Iran and the US.

"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 in an interview with Bloomberg. He added that while the UAE hopes the strait reopens soon, the country will continue pursuing its long-term strategy.

According to the report, the plan centers on a major expansion of the UAE's eastern ports at Dibba, Fujairah, and Khor Fakkan, all located on the Gulf of Oman outside the Strait of Hormuz. Al Zeyoudi said the country also intends to build at least one additional harbor along the same coastline.

The initiative will also include new pipelines, rail links, and road networks designed to improve connections between the eastern ports and the UAE's oil and gas fields, as well as petroleum facilities.

The report said the UAE is accelerating construction of a second pipeline that will double crude export capacity through Fujairah and is also considering a third petroleum pipeline. Officials are studying additional options to support exports of petrochemicals, liquefied natural gas, and other energy products.

Al Zeyoudi said the projects remain in the planning stage and did not provide a cost estimate or completion timetable, though he indicated they would likely require investments totaling billions of dollars.

The closure of the Strait of Hormuz during the recent conflict highlighted the importance of the route for global trade. The UAE continued moving some crude through an existing pipeline to Fujairah and increased the use of eastern ports to maintain cargo flows.

The report noted that redirecting exports such as LNG and aluminum away from the strait would present greater challenges than crude oil shipments. In addition, the UAE remains heavily dependent on Gulf ports, including Jebel Ali and Khalifa Port, for imports, meaning transportation costs could rise if more cargo is routed through eastern ports.

Al Zeyoudi said expanded rail infrastructure would help reduce those costs while allowing Jebel Ali and Khalifa Port to continue serving as key redistribution centers.

During the recent conflict, the UAE also relied more heavily on air freight and redirected some cargo through ports in countries including Egypt and India to maintain supply chains, according to the report.

The UAE has repeatedly called for the reopening of the Strait of Hormuz and the restoration of unrestricted maritime traffic. In a statement released this week, the country said the "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."