For decades, Fujairah's geography promised far more than its economy delivered. Situated on the eastern coastline of the United Arab Emirates, the port city of 120,000 people has long offered an escape route around the Strait of Hormuz, yet remained overshadowed by the gleaming skylines and global ambitions of richer Dubai and Abu Dhabi.
Now, as renewed US-Iran fighting again brings shipping through Hormuz to a near standstill, Fujairah is serving as a critical node in the Gulf’s economy amid efforts to bypass the waterway. Oil and other commodities are flowing through the emirate overlooking the Indian Ocean, which has become a vital link for Gulf hubs as the war reshapes regional trade.
That shift could soon accelerate. On July 13, the Financial Times reported that Dubai logistics giant DP World is exploring construction of a new multipurpose port and container terminal in Fujairah, citing unnamed sources. The company declined to confirm details when contacted by Al-Monitor, but the reported investment could mark a major shift in Dubai’s logistics strategy, which has long centered on the Port of Jebel Ali, a sprawling logistics hub on the UAE’s Gulf coast that saw activity plummet after the war broke out.
Relocating some of Jebel Ali’s capacity outside Dubai would serve the UAE's broader push to reduce its dependence on Hormuz, including new oil pipelines being fast-tracked by Abu Dhabi National Oil Company that would terminate in Fujairah. Together, these projects could help fuel a growth boom in the emirate.
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