DP World is planning a major expansion on the United Arab Emirates’ east coast with the development of a new multipurpose port in Fujairah and a container terminal at the existing Fujairah harbour, a strategic move aimed at reducing dependence on the Strait of Hormuz and strengthening supply chain resilience amid continued regional geopolitical tensions.
According to a report by the Financial Times, the Dubai-based global ports and logistics operator is in discussions with UAE government authorities on the project, which would establish an alternative gateway on the Gulf of Oman. The development would enable container cargo to enter and leave the UAE without transiting the Strait of Hormuz before being transported overland to Dubai, Abu Dhabi and neighbouring Gulf countries.
The initiative represents one of the most significant strategic shifts in DP World’s domestic infrastructure planning in decades. While the company has built an extensive global ports and logistics network, Jebel Ali Port has remained its flagship asset and the backbone of Dubai’s emergence as one of the world’s leading trade and logistics hubs.
The proposed east coast expansion comes in response to prolonged disruptions in shipping through the Strait of Hormuz following the escalation of regional conflict involving Iran. Shipping activity through the vital waterway has been severely affected by security concerns, forcing governments and logistics companies across the Gulf to reassess their supply chain strategies.
Industry sources told the Financial Times that cargo volumes at Jebel Ali fell sharply after the Strait of Hormuz was disrupted, prompting DP World to accelerate plans for alternative infrastructure.
Despite the new investment, company officials stressed that the project is intended to complement—not replace—Jebel Ali.
“Jebel Ali will continue to be Jebel Ali. It will never be downsized,” a senior DP World official was quoted as saying.
The company is expected to invest hundreds of millions of dollars in the initial phase, with total investment likely to increase as additional capacity is developed. Discussions on the project’s financing structure and commercial framework are still ongoing, and the new facilities could reportedly be completed within approximately 18 months.
DP World has not officially confirmed the specific projects but acknowledged that diversification initiatives are being pursued to strengthen operational resilience.
The move also aligns with broader UAE government efforts to diversify critical trade infrastructure beyond the Strait of Hormuz. Fujairah already serves as a strategic energy hub for the country, enabling crude oil exports via the Gulf of Oman without passing through the narrow waterway.
The development comes as UAE logistics infrastructure undergoes broader expansion. Sharjah-based Gulftainer recently announced a US$2 billion investment programme to increase container handling capacity at nearby Khor Fakkan Port, another key east coast gateway.
According to industry analysts, the latest investments reflect a long-term shift in regional logistics planning, with operators seeking greater operational flexibility and alternative trade corridors to mitigate geopolitical risks while maintaining the UAE’s position as a leading global maritime and logistics hub.
