The UAE is working on a "highly ambitious plan" to boost its logistics sector that would help to reduce its dependence on the Strait of Hormuz to "zero", the country's Minister of Foreign Trade said.
The centrepiece of the strategy is to be a major expansion of the country's eastern ports in Dibba, Fujairah and Khor Fakkan, all of which are along the Gulf of Oman, Dr Thani Al Zeyoudi told Bloomberg.
The UAE also plans to build at least one new harbour on its eastern coast, he said. “We’re moving towards having zero Hormuz dependency and that’s regardless of whether it’s open or not,” Dr Al Zeyoudi said. “It’s going to open and we hope that will happen quickly, but we will not stop the new plan.”
The UAE will also develop new pipelines, rail and road networks to improve connections between the ports and the country’s oilfields, gasfields and petroleum facilities, he added.
In May, the UAE announced that it was accelerating the construction of a second pipeline to double the amount of crude it is able to export through Fujairah. The new plans will be backstopped by "significant investment", Mr Al Zeyoudi said. The UAE is exploring other options to ensure consistent exports of petrochemicals, liquefied natural gas and other energy products, he added.
He did not provide a timeline or costs for the projects. “The direction is already there, we’re doing the whole feasibility studies to move on. During those tough times, you always identify your gaps and you start working on it," he said.
The strait has been a flashpoint in the US-Iran war and its closure has restricted the flow of about a fifth of the world's energy exports. That has caused logistical concerns for countries in the region.
But the UAE has remained resilient, implementing measures to curb the negative effects of the conflict. Last week, Moody's Ratings said that while oil production and export volumes from the Arab world's second-largest economy would remain below pre-conflict levels owing to the strait's closure, higher crude prices – forecast by Moody's to average between $90 and $110 in 2026 – would more than offset that.
The UAE's gross domestic product grew 6.2 per cent year-on-year to hit Dh1.9 trillion ($517.2 billion) in 2025, anchored by the strength of the non-oil sector, government data showed last month.
