DUBAI — The United Arab Emirates is accelerating plans to develop a major port on its east coast, a strategic initiative led by Dubai-based logistics conglomerate DP World to reduce the country’s dependence on the Strait of Hormuz, one of the world’s most volatile maritime chokepoints. The proposed facility, first reported by the Financial Times on Tuesday, would enable cargo to bypass the narrow waterway that Iran has repeatedly threatened to close, disrupting nearly one-fifth of global oil supplies and critical trade routes.
While DP World and UAE authorities have not disclosed specific timelines, investment figures, or exact locations, industry analysts and regional officials confirm that preliminary discussions are underway. The project reflects a broader shift in Gulf security and economic planning, as regional powers seek to mitigate risks posed by Iran’s military posture, Western sanctions, and the specter of maritime conflict. For India, the UAE’s third-largest trading partner, the development could offer a vital alternative route for energy imports and bilateral trade, potentially reshaping supply chain dynamics in South Asia.
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What Happened
DP World, the UAE’s state-backed port operator and a global leader in maritime logistics, has initiated feasibility studies for a new deep-water port on the country’s east coast, according to multiple reports in the Financial Times, Reuters, and NDTV. The proposed facility would be situated on the Gulf of Oman, outside the Strait of Hormuz, allowing vessels to avoid the 39-kilometer-wide strait that separates Iran from Oman and the UAE.
No formal announcement has been made by the UAE government or DP World, but sources familiar with the matter told the Financial Times that the company has begun engaging with potential investors and government agencies. The project is expected to require several years of construction, along with significant investments in road and rail infrastructure to connect the port to existing trade networks in Dubai, Abu Dhabi, and beyond.
The UAE has previously demonstrated its commitment to diversifying maritime routes. In 2025, the country completed a $3.5 billion expansion of the Port of Fujairah, also located on the Gulf of Oman, which has since become a key hub for oil storage, bunkering, and transshipment. The new port would build on this infrastructure, further reducing the UAE’s reliance on the Strait of Hormuz for critical imports and exports.
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Why It Matters
The Strait of Hormuz remains one of the most geopolitically sensitive waterways in the world. Approximately 21 million barrels of oil—roughly 20% of global supply—pass through the strait daily, along with liquefied natural gas (LNG) and containerized cargo. Iran, which controls the northern shore of the strait, has repeatedly threatened to block it in response to U.S. sanctions or military pressure. In 2024, tensions escalated following a series of maritime incidents, including the seizure of commercial vessels and drone attacks on shipping infrastructure, many of which were attributed to Iranian-backed groups.
For the UAE, a disruption in the Strait would have catastrophic economic consequences. Dubai, the country’s commercial capital, serves as a global logistics and re-export hub, handling billions of dollars in trade annually. A prolonged closure of the strait could paralyze supply chains, spike energy prices, and destabilize regional markets. The new port project is therefore not merely an infrastructure initiative but a strategic hedge against geopolitical instability.
The implications extend far beyond the Gulf. For India, which imports nearly 60% of its crude oil through the Strait of Hormuz, the UAE’s east coast port could provide a critical alternative route. A disruption in the strait would send global oil prices soaring, exacerbating inflation and straining India’s current account deficit. The new port could also reduce transit times for Indian exports to the Gulf, including pharmaceuticals, textiles, and engineering goods, while offering a more secure corridor for energy imports.
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Background and Context
The Strait of Hormuz has been a flashpoint for decades, but tensions have intensified in recent years due to the U.S.-Iran standoff, regional proxy conflicts, and Iran’s nuclear ambitions. In 2019, Iran seized a British-flagged oil tanker in the strait, escalating fears of a broader conflict. While the waterway has remained open, the risks of miscalculation or deliberate escalation remain high.
The UAE has long sought to reduce its vulnerability to such disruptions. In 2012, the country inaugurated the Habshan-Fujairah oil pipeline, which allows crude to bypass the Strait of Hormuz and reach the Port of Fujairah for export. The pipeline, with a capacity of 1.5 million barrels per day, was a critical step in diversifying the UAE’s energy export routes. The new port project represents the next phase of this strategy, extending redundancy to containerized trade and general cargo.
Regionally, the UAE is not alone in seeking alternatives. Saudi Arabia has explored overland pipelines and Red Sea ports to bypass the strait, while Oman has positioned itself as a neutral transshipment hub. Globally, the push to diversify maritime routes reflects broader anxieties about supply chain resilience, particularly in the wake of the COVID-19 pandemic and the Ukraine war, which exposed vulnerabilities in global trade networks.
For DP World, the project aligns with its broader expansion strategy. The company, which operates 82 marine and inland terminals across six continents, has been aggressively investing in emerging markets, including Africa and South Asia. In 2025, DP World secured a 30-year concession to develop and operate the Vadhavan Port in India, a $9 billion project aimed at boosting trade between India and the Middle East. The UAE’s east coast port could complement these efforts, creating a seamless logistics corridor between South Asia and the Gulf.
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Competing Claims and Uncertainty
While the strategic rationale for the port is clear, several key questions remain unanswered:
1. Feasibility and Cost: Industry analysts estimate that the project could require investments of $5 billion to $10 billion, depending on the port’s capacity and supporting infrastructure. The Gulf of Oman, while deeper and less constrained than the Strait of Hormuz, presents its own challenges, including rougher seas and longer transit times to major markets. Additionally, the UAE would need to develop extensive road and rail links to connect the port to its existing logistics network, a process that could take years.
2. Security Risks: The Gulf of Oman is not immune to geopolitical tensions. In 2019, two oil tankers were attacked in the waterway, an incident that the U.S. blamed on Iran. While the UAE has strengthened its maritime security cooperation with the U.S. and other Western allies, the risk of asymmetric attacks—such as drone strikes or sabotage—remains a concern. The port’s proximity to Iran and Pakistan could also make it a target in the event of a broader regional conflict.
3. Regional Dynamics: The UAE’s relationship with Iran has been marked by both cooperation and confrontation. While the two countries restored diplomatic ties in 2023 after years of tension, their rivalry persists in proxy conflicts across the Middle East. The port project could be interpreted as a provocation by Tehran, potentially escalating tensions. Conversely, it could also serve as a bargaining chip in future negotiations, signaling the UAE’s willingness to reduce its dependence on Iranian-controlled waterways.
4. Commercial Viability: The success of the port will depend on its ability to attract shipping lines and cargo owners. While the UAE’s existing ports, such as Jebel Ali, are among the busiest in the world, the new facility would need to offer competitive advantages, such as lower transit times, reduced costs, or enhanced security. The project’s viability may also hinge on broader geopolitical developments, including the outcome of U.S.-Iran negotiations and the stability of global energy markets.
5. Environmental and Regulatory Hurdles: The Gulf of Oman is home to sensitive marine ecosystems, including coral reefs and migratory species. The construction of a large-scale port could face opposition from environmental groups and require extensive impact assessments. Additionally, the project would need to navigate complex regulatory frameworks, including international maritime laws and bilateral agreements with neighboring countries.
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What to Watch Next
1. Official Announcement: DP World and the UAE government are expected to release more details about the project in the coming months, including timelines, investment figures, and potential locations. A formal announcement could coincide with the UAE’s broader economic diversification plans, such as its “Projects of the 50” initiative, which aims to boost non-oil sectors.
2. Investor Interest: The project’s success will depend on securing funding from global investors, including sovereign wealth funds, private equity firms, and multilateral institutions. The UAE’s strong credit rating and track record in infrastructure development could attract interest, but geopolitical risks may give some investors pause.
3. Regional Reactions: Iran’s response to the project will be closely watched. Tehran has previously warned against efforts to bypass the Strait of Hormuz, framing such initiatives as hostile acts. The UAE’s diplomatic channels with Iran will be critical in managing potential fallout.
4. India’s Role: India is likely to emerge as a key partner in the project, given its strategic interest in diversifying trade routes. New Delhi could explore joint ventures with DP World to develop supporting infrastructure, such as rail links or free trade zones. The project could also accelerate India’s own efforts to develop the Chabahar Port in Iran, creating a potential synergy between the two initiatives.
5. Global Energy Markets: The port’s impact on oil and LNG trade will be a major focus for energy analysts. If the facility proves successful, it could reduce the Strait of Hormuz’s strategic importance, potentially lowering insurance premiums for vessels transiting the waterway and stabilizing global energy prices.
6. Security Arrangements: The UAE is expected to enhance its maritime security cooperation with the U.S. and other allies to protect the new port. This could include increased naval patrols, surveillance drones, and cybersecurity measures to guard against potential threats.
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Conclusion
The UAE’s plan to develop an east coast port represents a bold bet on geopolitical resilience and economic diversification. By reducing its reliance on the Strait of Hormuz, the country is seeking to insulate itself from the risks of regional conflict while positioning itself as a more secure hub for global trade. For India and other major trading partners, the project offers a potential lifeline in an era of rising geopolitical uncertainty.
Yet the initiative is not without risks. The Gulf of Oman’s security environment, the project’s commercial viability, and Iran’s reaction will all shape its success. As the UAE moves forward with its plans, the world will be watching to see whether this ambitious project can deliver on its promise—or whether it will become another casualty of the region’s volatile geopolitics.
Story synopsis gathered from: Financial Times, Reuters, NDTV, and CNBC — Google News India.
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Story synopsis gathered from: Google News India – World (Indian angle) — source.
