By: AGBI

Dubai-based DP World is reportedly considering building a new port and container terminal in Fujairah to reduce its reliance on the Strait of Hormuz.

The port operator has begun talks on a proposed multipurpose port and new terminal at the existing harbour in Fujairah, in a move aimed at reducing Dubai’s dependence on its flagship Jebel Ali port, the Financial Times reported, citing unidentified sources.

Fujairah is the only UAE emirate on the eastern coast, along the Gulf of Oman.

Discussions are ongoing to finalise the project’s structure and financing, but the port would be ready within 18 months, the Financial Times report said.

The proposed project would expand DP World’s presence in the Gulf of Oman, bypassing the Strait of Hormuz, before goods are trucked across the UAE and neighbouring Gulf countries.

DP World declined to confirm details of the new terminal, adding that it is working on diversification plans to get through the disruption.

Activity at Jebel Ali fell by between 90 and 95 percent after Iran closed the strait following the US-Israeli attacks, the report said.

In March, DP World confirmed that Jebel Ali Port recorded a drop in activity but remained fully operational.

The company has set its capex budget at $3 billion for 2026, focused on priority projects including Jebel Ali, Drydocks World, Tuna Tekra in India, London Gateway in the UK and Ndayane in Senegal.

AGBI reported this month that the UAE is already accelerating plans to route more trade away from the strait, as Gulf ports risk losing market share to rivals in India, Sri Lanka and beyond.