UAE planning to develop shipping alternatives, port that bypasses Hormuz
The UAE is investing billions into port infrastructure outside the Strait of Hormuz to ensure energy and commodity exports continue during regional conflicts. This 'Zero Hormuz' strategy focuses on expanding the port of Fujairah to bypass potential Iranian blockades.
Why it matters
This shift highlights the vulnerability of global energy supply chains to geopolitical tensions in the Persian Gulf.
Abu Dhabi's state-owned wealth platform, L'imad Holding, is preparing to increase its investment in ports and other infrastructure beyond the Strait of Hormuz, as the UAE seeks to lessen its dependence on the waterway during the ongoing conflict with Iran.The Strait of Hormuz is the main sea exit from the Persian Gulf. Iran's capacity to interrupt traffic through it has become a growing worry for Gulf governments since the war began in February.The drive gained momentum since L'imad announced plans to take Abu Dhabi Ports Co.
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