DUBAI: DP World is exploring construction of a new port and container terminal on the United Arab Emirates’ east coast, a move that would ease Dubai’s reliance on its Jebel Ali hub and offer a route around the Strait of Hormuz, the Financial Times reported, citing people familiar with the matter.
The Dubai-based port operator is discussing plans for a new multipurpose port in Fujairah along with an additional terminal at the emirate’s existing harbor, according to the report.
Jebel Ali has long been considered the centerpiece of both DP World’s global operations and Dubai’s economy, having driven the emirate’s rise as an international trade and finance center over the past two decades. Diverting some of its capacity elsewhere would represent a major strategic shift.
The push comes as part of a wider UAE effort to shield its economy from continued tension with Iran by lessening dependence on the strait, a vital shipping lane that has faced repeated disruptions from Iranian drone and missile strikes following a U.S.-Israeli attack. A port on the Gulf of Oman would let goods bypass the strait entirely, arriving by sea and then reaching Dubai, Abu Dhabi and other Gulf markets by truck.
Since fighting began in late February, Iran has launched close to 3,000 drones or missiles at the UAE, more than at any other country, according to the report. A fire at Jebel Ali early in the conflict was attributed to debris from an intercepted missile.
The unrest has coincided with turmoil at the top of DP World, which ousted longtime chairman and CEO Sultan Ahmed bin Sulayem shortly before the war broke out over his connections to convicted sex offender Jeffrey Epstein.
Container traffic at Jebel Ali, the region’s largest port, dropped by as much as 90% to 95% after Iran shut the strait in retaliation for the U.S.-Israeli strikes, according to the people familiar with the matter, prompting DP World to pursue other options. The company is now negotiating terms with government officials, though the financing and structure of the new project have not been finalized. A senior company official said the port could be operational within about a year and a half.
DP World did not confirm specifics about any east coast development but acknowledged in a statement that it is working on “plans in the works around diversification to get through this disruption.”
Officials in the Gulf said the shift does not signal an end to Jebel Ali’s role; the hub includes a sprawling free-trade zone along with extensive warehouse and industrial infrastructure built up over decades.
DP World is expected to initially commit several hundred million dollars to the new facilities, with the investment potentially growing depending on future capacity needs, sources said.
The plans reflect a broader reassessment among governments and companies across the region of infrastructure built around the assumption of unimpeded passage through the Strait of Hormuz. Daily vessel transits through the waterway, once around 135 before the war, have struggled to exceed 40 even after a U.S.-Iran ceasefire briefly reopened it. Renewed strikes in the strait over the past week have again slowed traffic to a trickle.
Jebel Ali handled 15.6 million 20-foot containers last year and has served as a key link between China and Africa, but its position leaves it exposed to disruptions in the narrow waterway separating Iran and Oman.
Moody’s has projected that the conflict will cut DP World’s annual earnings to about $5.9 billion this year, down from $6.6 billion in 2025. The company has already begun rerouting cargo from Jebel Ali to the east coast ports of Fujairah and Khor Fakkan, both of which are now experiencing heavy congestion.
Separately, Sharjah-based Gulftainer is expanding its own operations at Khor Fakkan, having announced a $2 billion investment earlier this month to boost capacity there. Fujairah already serves a key role in the UAE’s energy exports, with Abu Dhabi shipping crude oil through the emirate and planning to increase volumes as another way of avoiding the strait.
