US-Iran at Peace, UAE to Reduce Dependence on Strait of Hormuz to Zero Percent

ILLUSTRATION/NASA Johnson Space Center

DUBAI - The United Arab Emirates (UAE) is working on a major plan to eliminate its dependence on the Strait of Hormuz after the recent closure of the vital waterway revealed the vulnerability of trade and energy flows in the Gulf.

The UAE Minister of Foreign Trade, Thani Al Zeyoudi, said the country is moving towards "zero dependence on Hormuz," according to a Bloomberg report, Wednesday, June 17.

The plan comes as global markets await the full reopening of the strait after a temporary peace deal between Iran and the US.

The Strait of Hormuz, through which about a fifth of global crude and liquefied natural gas shipments pass before the war, has been disrupted since the US and Israeli attacks on Iran began in late February.

The core of the UAE plan is a massive expansion of the eastern ports of Dibba, Fujairah, and Khor Fakkan, which are located off the strait on the coast of the Gulf of Oman, according to the report.

The country is also planning to build at least one new port on the same coastline, along with a new pipeline, railway and highway to connect the eastern port with oil and gas fields and petroleum facilities.

The UAE already uses an existing pipeline with a capacity of 1.5 million barrels per day to send crude oil to Fujairah, allowing them to partially avoid the Strait of Hormuz.

In mid-May, they announced they would accelerate the construction of a second pipeline to double crude oil export capacity through Fujairah by 2027.

The country is also studying a third oil pipeline and other options to support exports of petrochemicals, LNG, and other energy products.

Al Zeyoudi did not give costs or timeframes, saying the projects were still in the feasibility study stage, although expansion of the infrastructure is expected to require investments worth billions of dollars.

Reducing dependence on the Strait of Hormuz remains difficult, as diverting LNG, aluminum, and other commodities from Gulf ports would be more complex than diverting crude and refined oil.

The UAE is also heavily reliant on ports in the Gulf, particularly Jebel Ali in Dubai, one of the world's largest container hubs, for imports and redistribution.

The UAE has repeatedly called for unhindered traffic through the Strait of Hormuz, saying the waterway is vital for regional and global security, stability, and economic prosperity.

The plan marks a broader strategic shift toward reducing exposure to geopolitical risks in the Gulf and strengthening alternative trade and energy routes outside the strait.