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DP World Is Planning a New Gateway on the UAE's East Coast

DP World is planning to build a new port and container terminal on the United Arab Emirates' east coast, a move that would reduce Dubai's dependence on its flagship Jebel Ali hub and allow cargo to bypass the Strait of Hormuz, the Financial Times reported Monday, citing people familiar with the matter.


The Dubai-based ports and logistics operator is in talks to develop a brand-new multipurpose port in the coastal area of Fujairah, alongside a new container terminal at the emirate's existing harbor. Reuters said it could not independently verify the report, and DP World declined to confirm the individual projects, though the company said "plans are in the works" to address disruption to trade routes.


Why the East Coast


The proposed facilities would deepen DP World's presence on the Gulf of Oman and create an entry point for shipping outside the Strait of Hormuz entirely. Under the plan, containers could be unloaded in Fujairah and then transported by road to Dubai, Abu Dhabi, and neighboring Gulf markets, avoiding the increasingly dangerous passage between Iran and Oman.


The move comes amid heightened Middle East tensions, with Iran having effectively blocked normal traffic through the Strait of Hormuz throughout the regional war that began in late February. The strait remains at the center of an escalating conflict between the U.S. and Iran, and President Donald Trump has previously suggested the U.S. could seize control of the waterway from Iran and charge vessels a toll for passage.


The urgency behind the project was underscored this week when UAE authorities said Iranian cruise missiles struck two Emirati tankers, killing one crew member and injuring eight others in the Strait of Hormuz — a reminder that the chokepoint can no longer be treated as reliably open for shipping.


Timeline and Investment


A senior company official told the Financial Times that the new port could be completed within 18 months, reflecting the urgency with which Gulf governments and businesses are moving to build alternatives to the strait. According to reports, DP World plans to invest hundreds of millions of dollars during the initial phase of the Fujairah project, with additional investment expected as demand grows. The structure and financing of the project remain under discussion, and the plan is described as still in an early stage rather than a confirmed final investment decision.


Since the onset of the regional conflict, DP World has already been diverting cargo away from Jebel Ali toward Fujairah and the nearby port of Khor Fakkan, resulting in congestion at both east coast facilities — a key driver behind the push to formally expand capacity there.


Not a Replacement for Jebel Ali


Company officials stressed that the east-coast expansion is intended to complement, rather than replace, Jebel Ali Port, which remains DP World's flagship asset and the region's largest container gateway. Jebel Ali handled 15.6 million twenty-foot equivalent units in 2025, accounting for a substantial share of DP World's global container business, and has evolved over decades into a major logistics and industrial hub supported by an extensive free zone, warehousing, and manufacturing ecosystem.


Jebel Ali is also a significant hub for U.S. trade into the UAE and the wider region, serving as a frequent logistics stop for the U.S. Navy and a gateway for American exporters reaching the Middle East, Africa, and South Asia through re-export and bonded warehousing channels. U.S. exports to the UAE totaled $31.4 billion in 2025, up 16.2% from $27 billion the previous year, according to the U.S. Trade Representative's office.


This is a developing story and will be updated as further details on the Fujairah project are confirmed.
 

By: Simran

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