The UAE is accelerating efforts to reduce its reliance on the Strait of Hormuz for trade and energy exports. Reported comments by Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, referred to an ambition to move toward “zero Hormuz dependency.” In practical terms, the strategy appears aimed at reducing exposure to a single maritime chokepoint by expanding the role of eastern ports, pipelines, rail links and inland logistics corridors. For companies that import, export, store or move goods in or through the UAE, this is not only a regional trade and infrastructure development. It has practical consequences for contracts, logistics, insurance, customs planning and business continuity.
Why the strategy matters now
The UAE’s move to reduce reliance on the Strait of Hormuz is not a sudden reaction to recent regional developments. The country has been building alternative trade and export routes for years, including the Habshan–Fujairah pipeline, which has been operational since 2012, and the Etihad Rail freight network, which has supported freight movement across the UAE since 2023. Recent maritime security concerns have simply underlined the importance of that strategy and brought greater attention to the role of the eastern ports, pipelines and inland transport links.
The Strait of Hormuz remains one of the world’s most important maritime routes for energy and trade. Any disruption or uncertainty affecting the route can have consequences for energy prices, shipping schedules, insurance, port operations and cargo movements across the region.
The UAE has consistently supported uninterrupted maritime traffic and safe passage through the Strait of Hormuz, while also continuing to invest in alternative infrastructure. The strategic direction is therefore not only a response to current regional uncertainty, but part of a broader long-term resilience strategy.
What the plan involves
The plan centers on the country’s Gulf of Oman coast, which sits outside the strait. Public reporting indicates that the UAE is considering further expansion of the ports of Fujairah, Khor Fakkan and Dibba, together with additional harbour capacity along the Gulf of Oman coast. Two pieces of infrastructure sit at the heart of this strategy: the crude pipeline to Fujairah and the Etihad Rail freight network.
The pipelines
The UAE already operates one route that moves crude to the coast without passing through the strait: the Abu Dhabi Crude Oil Pipeline, also called the Habshan–Fujairah pipeline. Running about 400 kilometers from Abu Dhabi’s onshore fields to the port of Fujairah on the Gulf of Oman, it has been pumping since 2012. Its nameplate capacity is 1.5 million barrels a day, with reported capacity of up to 1.8 million barrels a day when required. In periods of route disruption or heightened maritime security concern, the pipeline provides an alternative export route through Fujairah and reduces dependence on tanker movement through the Strait of Hormuz.
Public reporting also indicates that ADNOC is developing a second line alongside it, the West-East Pipeline, announced in May 2026. It is designed to roughly double Abu Dhabi’s export capacity through Fujairah. Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC’s group chief executive, said the line is about half built and that ADNOC has brought delivery forward toward 2027. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has called for faster delivery. Dr. Thani Al Zeyoudi also reportedly confirmed that a third petroleum pipeline is under feasibility study.
The timing also connects to a wider energy strategy. ADNOC’s production capacity plans make additional export routes commercially important. The second pipeline gives that additional output a further export route through Fujairah.
Still, these routes reduce the UAE’s exposure rather than remove it. Crude can increasingly move by pipeline, but refined products from Ruwais and LNG exports still travel in part by tanker through Hormuz — one reason the UAE continues to support safe and uninterrupted passage through the Strait of Hormuz even as it builds alternatives.
Etihad Rail
The rail network is the inland half of the plan. Etihad Rail’s freight line runs about 900 kilometers from Ghuweifat on the Saudi border to Fujairah, and has carried freight across all seven emirates since 2023. It connects the major ports — Khalifa Port, Jebel Ali, and Fujairah — to industrial zones, quarries, and manufacturing sites inland. The track is built for double-stacked containers and heavy loads, and each freight train can take roughly 300 trucks off the road. Etihad Rail is aiming to move 60 million metric tons of cargo a year by 2030, and carries crude products, petrochemicals, polymers, aluminum, cement, and general containerized goods.
For trade flowing through the eastern ports, two developments matter. First, Etihad Rail and the customs authorities have set up a bonded rail corridor between Khalifa Port and the terminals at Fujairah, which lets goods move between the two with priority customs clearance and without breaking bond — a way to cut the time and cost of shifting cargo inland from Fujairah. Second, a joint venture with Oman Rail, known as Hafeet Rail, will link the network to Oman’s Sohar Port, and the line is intended to form part of the wider GCC railway. Together these extend the reach of the eastern ports well beyond the UAE’s own coastline.
In periods of heightened maritime security concern, this combination of eastern ports, inland transport links and pipeline infrastructure can support continuity by giving companies more routing options. For businesses, the key point is not to assume that one port, one route or one logistics provider will always remain commercially practical.
What it means for businesses operating in or through the UAE
As the role of the eastern ports grows, businesses may need to account for different routing, inland transport, customs processes and cost allocation. Jebel Ali and Khalifa Port are expected to remain central to UAE distribution, but Fujairah, Khor Fakkan and other eastern coast facilities are likely to play a larger role in trade planning.
For businesses, the UAE’s move is positive. But it also underscores the importance of ensuring existing contracts and logistics arrangements are flexible enough to cope with a changing trade environment.
Companies with cross-border supply chains should consider reviewing:
- Force majeure clauses and how they treat route closures, port disruption, maritime security incidents and prolonged interruption.
- Delivery terms and Incoterms, especially where contracts assume delivery through a specific port.
- Risk transfer provisions and the point at which responsibility for the goods passes from seller to buyer.
- Shipping and logistics contracts, including whether carriers or suppliers can substitute ports or routes.
- Cargo insurance, including special-risk cover, delay cover and exclusions linked to regional disruption.
- Demurrage and detention provisions, particularly where cargo may be held or rerouted.
- Customs and licensing arrangements tied to specific ports, warehouses or free zones.
- Business continuity plans, including alternative logistics providers, storage options and internal approval procedures.
These points are not only relevant during periods of disruption. They are part of normal commercial planning for companies that depend on UAE trade routes.
Where things stand
The UAE’s direction is clear: more routes, more ports and less reliance on a single maritime chokepoint. For businesses, this is a positive development, but it also calls for practical preparation. Companies that rely on UAE trade routes should review their contracts, delivery terms, insurance cover, customs processes and logistics arrangements to ensure they remain suitable as port options and transport corridors expand.