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Beyond the Strait of Hormuz: How Fujairah Strengthens the UAE’s Geoeconomic Resilience
Dr Tauseef Javed
Analysis Series
Analysis/0054/July/2026/London-Dialogue. 28 July 2026
Introduction
The current turmoil in the Middle East has revealed that regional wars’ consequences can become global, which makes maritime trade routes strategically vulnerable. The Strait of Hormuz has shaken the global energy market, and it has become a point of contention even after a brief ceasefire between the United States and Iran. Since war broke out, the price of petroleum has risen worldwide and fluctuated amid agreements to stop fighting so that peace negotiations can begin, which have frequently been broken. However, this passage is one of the most critical maritime choke points. About 20 per cent of the world’s oil and Liquefied Natural Gas (LNG) are transported via it, making it one of the world’s busiest oil shipping lanes. Normally, 3,000 ships pass through the strait each month, but during recent confrontations, this number drastically dropped as ships and tankers are being targeted. The U.S. Energy Information Administration reports that in the first half of 2025, almost 21 million barrels per day of petroleum products and crude oil traversed the Strait of Hormuz. Roughly one-fifth of the world’s supply of natural gas and oil comes from the region. The Rapidan Energy Group, an independent energy market firm based in Washington, claims that the closure of the strait has resulted in the largest oil interruption in history, three times worse than the 1973 Arab oil embargo. To avoid the war, shipping companies have rerouted their ships around the southern tip of Africa, which analysts say increases transportation costs and transit times. Fuel shortages, blackouts, and other actions to protect scarce energy supplies have resulted from these impacts, which have spread to buyers’ markets, including several Asian nations. In such a scenario, this important global artery has become vulnerable, and it is posing a serious threat to the regional economies as well. At the onset of all this, the region is undergoing a strategic shift where trade and economic interests have central priority. On Wednesday, DP World said that it has agreed to build two new deep-water ports, which would provide a direct path to international trade without requiring ships to cross the Strait of Hormuz. The Fujairah Ports Authority and the Dubai-based ports operator reached an agreement in principle for a 50-year concession to develop two locations on the east coast of the UAE: the Dibba General Cargo terminal and the Al Rugaylat container and multipurpose terminal.
Therefore, the UAE’s investment in Fujairah is likely indicative of a larger strategic shift in which geography is now seen as a tool of national power rather than merely a limitation. The UAE aims to lessen strategic vulnerability and increase economic resilience by building maritime infrastructure outside the Strait of Hormuz.
The Strait of Hormuz: Strategic Importance and Risk
The Strait of Hormuz, a vital maritime chokepoint connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, is crucial for global energy exports. It handles about 20 per cent of world petroleum and a significant portion of LNG trade. Its uninterrupted flow is essential for global energy security and market stability. Disruptions can directly impact oil prices, freight costs, and investor confidence, as witnessed during this war.
For the UAE, the Strait of Hormuz is both a strategic asset and a source of vulnerability. As a major hydrocarbon producer and exporter, the UAE relies on secure maritime routes to sustain its energy exports and broader trade. Although Abu Dhabi has reduced its dependence by constructing the Abu Dhabi Crude Oil Pipeline to Fujairah—allowing part of its crude exports to bypass the Strait—the majority of regional energy exports and a significant proportion of the UAE’s commercial maritime traffic remain linked to Hormuz. The country’s position at the crossroads of global trade has underpinned its emergence as a logistics and energy hub. However, this geographical advantage is inseparable from the security risks associated with regional instability.
The current periods of heightened geopolitical tension in the region demonstrate the strategic vulnerabilities inherent in this dependence. Military confrontations, attacks on commercial vessels, or threats to freedom of navigation can disrupt shipping schedules, increase insurance premiums, and elevate transportation costs. Such disruptions not only undermine the reliability of energy supplies but also generate broader economic uncertainty by discouraging investment, reducing market confidence, and increasing price volatility across global energy markets. For an economy like the UAE’s, which has diversified into logistics, finance, and international commerce, prolonged instability in the Hormuz could have consequences that extend well beyond the energy sector.
Ultimately, the Strait of Hormuz illustrates a central geopolitical paradox: geography provides states with significant strategic and economic advantages, yet the same geography can create enduring vulnerabilities. For the UAE, maximising the benefits of its location while mitigating the risks associated with regional conflict requires continued investment in alternative export infrastructure, maritime security, and economic diversification and resilience.
Fujairah Matters Strategically
Fujairah has emerged as one of the UAE’s most strategically significant assets amid the Gulf’s evolving geopolitical and geoeconomic landscape. Currently, regional tensions constantly threaten maritime security in the Strait of Hormuz; Fujairah has become a critical pillar of the UAE’s long-term strategy to strengthen energy resilience, diversify export infrastructure, and ensure uninterrupted access to international markets. Its value lies not in replacing the Strait of Hormuz but in reducing the country’s dependence on a single maritime chokepoint.
Fujairah’s foremost strategic advantage stems from its unique geography. Located on the Gulf of Oman and opening directly onto the Arabian Sea, the emirate is the UAE’s only major port situated outside the Strait of Hormuz. This location enables vessels departing from Fujairah to reach global shipping lanes without transiting into the troubled Strait of Hormuz. Consequently, the port assumes heightened importance amid geopolitical instability, serving as a secure and reliable gateway for maritime trade.
Fujairah’s importance extends beyond its geography, as it has evolved into a key regional energy and maritime hub. It features one of the world’s largest oil storage and blending facilities, offering strategic petroleum reserves and commercial storage for both domestic and international energy firms. The port ranks among the top global bunkering centres, providing fuel and technical support to thousands of commercial ships annually. With advanced logistics, specialised terminals, and robust energy infrastructure, Fujairah boosts the efficiency and resilience of regional supply chains and strengthens the UAE’s presence in global energy markets.
Geography Shapes Maritime Statecraft
The UAE leverages its geographic position at the crossroads of Europe, Asia, and Africa to gain strategic influence through advanced maritime statecraft. Instead of relying solely on location, it transforms geography into geopolitical and economic advantage by investing in ports, logistics, free zones, aviation, and global trade. This shift shows how economic infrastructure now serves as a tool of national power, with the UAE exemplifying geoeconomics—the use of economic assets to achieve strategic goals. This model moves from geography to infrastructure, then to connectivity, economic power, and strategic influence. The UAE’s maritime infrastructure connects the Gulf to global markets and integrates supply chains. Through investment in transport corridors and logistics, the UAE has become a key node in global commerce, not just a transit state.
The Fujairah port is a key part of the UAE’s maritime security, situated outside the Strait of Hormuz on the Gulf of Oman. It offers a strategic outlet, reducing reliance on a vulnerable chokepoint. The Abu Dhabi Crude Oil Pipeline transports oil to Fujairah, boosting export resilience by bypassing Hormuz. With extensive oil storage, bunkering, and expanding logistics operations, Fujairah is vital to energy security and maritime resilience. Its role surpasses commercial needs, ensuring supply chain continuity amid regional instability and strengthening the UAE’s position as a global energy supplier.
Therefore, the UAE shows that geography alone doesn’t create influence; it’s the deliberate building of infrastructure and connectivity that turns geographic advantage into lasting geopolitical power. The UAE has evolved from a trading state to a leading geoeconomic power by integrating maritime infrastructure, facilitating, securing, and shaping the flow of energy, goods, capital, and investment across regions.
Conclusion
The development of Fujairah Port amid the regional crisis demonstrates a fundamental shift in the UAE’s strategic thinking. Rather than accepting its geographical vulnerability, the UAE is redesigning its infrastructure to build resilience. In an era of geopolitical uncertainty, ports are no longer merely economic assets; they have become instruments of national security and strategic autonomy. Therefore, it can be said that the UAE is strategically investing in its national power by securing its geoeconomic interests through ports. It also highlights that risk mitigation and resilience in times of war are not cornerstones but the central objective of the UAE government.
Dr Tauseef Javed
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