Construction of Two AED 2.5 Billion Port Terminals in Fujairah Accelerated to Reduce Reliance on Strait of Hormuz
DP World has announced plans to accelerate the development of two port terminals in Fujairah, with an investment of about AED 2.5 billion. Under the revised timeline, phased operations are expected to begin within 18 to 24 months, compared with the company’s previous estimate of 24 to 30 months.
The decision comes as disruptions to vessel traffic through the Strait of Hormuz have increased the importance of alternative routes for transporting goods to the UAE. The two new terminals will be developed on the country’s east coast and connected to Jebel Ali Port in Dubai through the overland transport network.
DP World said it transported more than one million twenty-foot equivalent units (TEUs) by road and rail from the UAE’s east coast ports to Jebel Ali Port and domestic markets between the first week of March and the end of October 2026.
These alternative routes have enabled cargo to enter through ports outside the Strait of Hormuz and be transported overland to Dubai for customs clearance, storage and distribution.
3,500 TEUs Transported Daily via Overland Routes
Shahab Mohammed Al Jassmi, Chief Commercial Officer for Ports and Terminals at DP World in the GCC, told a media briefing that the company manages and operates a network of more than 3,000 trucks, including 700 owned by DP World.
He said about 3,500 TEUs are currently transported each day through alternative overland routes.
The network includes connections through the ports of Sohar and Duqm in Oman, as well as routes through Jeddah in Saudi Arabia.
DP World has also launched the Jebel Ali rail terminal and established a 100,000-square-metre facility for storing empty containers in Al Aweer to ease operational pressure on Jebel Ali Port.
As part of the initiative, Dubai Customs and Oman Customs activated a dedicated route known as the “Green Corridor” within 72 hours, allowing containers to be transported directly to Jebel Ali in sealed trucks under customs supervision.
Al Jassmi said trade conducted through the route was valued at about AED 34 billion between March 1 and June 30, 2026.
DP World’s UAE Container Capacity to Rise to Nearly 22 Million TEUs
The two new terminals will be developed under a 50-year concession agreement between DP World and the Fujairah Ports Authority. The project’s investment of about AED 2.5 billion will be made in phases over several years in line with demand.
The first project is the Al Rugaylat container and multipurpose terminal near Fujairah International Airport. It is expected to have an annual handling capacity of about 2.5 million TEUs, 1.7 million tonnes of general cargo and 190,000 car equivalent units.
The second project is the Dibba general cargo terminal, which will provide annual capacity of up to 3.6 million tonnes of general cargo and expand facilities for handling conventional cargo and vehicles.
Once the two terminals become operational, the annual container-handling capacity of DP World’s UAE facilities will increase from 19.4 million TEUs to nearly 22 million TEUs.
The Al Rugaylat terminal will also be able to accommodate the latest generation of ultra-large container vessels. Both terminals will be connected to Jebel Ali Port and the Jebel Ali Free Zone, known as Jafza, through DP World’s overland logistics network.
Al Jassmi said the terminals were intended to create an integrated, long-term freight transport network in the UAE, allowing cargo to enter the country through different routes depending on its destination and customer requirements.
Jebel Ali Shipping Expected to Recover After Strait of Hormuz Reopens
DP World’s chief commercial officer said Jebel Ali Port had remained operational despite regional disruptions, with total disruption to its activities limited to six hours since the crisis began.
However, restrictions on vessel traffic through the Strait of Hormuz have affected the port’s maritime activity.
He said shipping line services and cargo volumes at Jebel Ali Port were expected to recover gradually within one to three months once safe passage through the Strait of Hormuz resumed.
Al Jassmi added that discussions with nine shipping companies in Asia indicated their willingness to return to Jebel Ali. However, the pace of the recovery would depend on the time required to reposition vessels and readjust maritime route networks.
Jebel Ali Port handled about 15.6 million TEUs in 2025. The port has an annual capacity of 19.4 million TEUs and is connected to 150 ports worldwide through more than 80 weekly shipping services.
Jebel Ali Free Zone Attracts More Than AED 1 Billion in Investment
DP World also said the Jebel Ali Free Zone attracted more than AED 1 billion in new investment during the first half of 2026.
Covering about 57 square kilometres, the free zone is home to more than 12,000 companies, with occupancy rates across its facilities exceeding 90 per cent.
According to the figures released, land occupancy has reached 94 per cent, while warehouse occupancy stands at 99 per cent. Office occupancy has also risen to its highest level in a decade.
In addition to the Fujairah projects, DP World is continuing to expand its regional operations. The company plans to open its $250 million Jeddah logistics park in the first quarter of 2027 while advancing the development of the Al Rawdah Special Economic Zone near the Oman-UAE border.
Al Jassmi said DP World had not suspended any of its major regional investment projects and would continue expanding its network of ports, logistics services and alternative transport routes.