The United Arab Emirates is set to expand its maritime infrastructure with the development of new terminals at Fujairah, aiming to diversify import routes and enhance supply chain resilience amid ongoing disruptions at the Strait of Hormuz. DP World recently reached an agreement in principle with the Fujairah Ports Authority for a 50-year concession to develop the Al Rugaylat container and multi-purpose terminal alongside the Dibba General Cargo terminal.
The initiative will create an alternative entry point for essential goods, including construction materials critical to the UAE's real estate sector, and reduce the economy’s reliance on the Jebel Ali Port, currently operating at high capacity. Unlike Jebel Ali, which lies within the Strait of Hormuz, Fujairah faces the Gulf of Oman and provides direct access to the Indian Ocean, allowing vessels to bypass the strategically sensitive strait. This geographic advantage has grown more significant following interruptions to shipping lanes since March 2026, which have impacted cargo volumes and revenues at Jebel Ali.
The new terminals will integrate with DP World’s inland logistics network, linking Fujairah with Jebel Ali Port and the associated free zone. This connectivity will facilitate the movement of goods between the UAE’s east and west coasts and onward to domestic or international destinations. While the expansion complements rather than replaces Jebel Ali, it offers businesses greater flexibility by extending the country’s port and free-zone ecosystem.
The Al Rugaylat terminal is expected to handle up to 2.5 million twenty-foot equivalent units (TEUs) annually, along with 1.7 million tonnes of general cargo and 190,000 car equivalent units. It is designed to accommodate Ultra Large Container Vessels, reflecting modern shipping requirements. Meanwhile, the Dibba terminal will add capacity for up to 3.6 million tonnes of general cargo, increasing the UAE’s capability to manage non-containerized shipments.
DP World anticipates this expansion will boost the UAE’s container-handling capacity by about 13%, raising annual throughput from 19.4 million TEUs to nearly 22 million TEUs. Although this growth is described as modest, it could handle nearly half of the re-export cargo volumes currently processed through Jebel Ali. This is particularly significant as re-export shipments are more vulnerable to diversion in the event of prolonged disruptions along established shipping routes.
Sheikh Saleh Bin Mohamed Al Sharqi, Chairman of the Fujairah Ports Authority, emphasized that the new terminals will bring world-class operational capacities and attract investment to the emirate, further cementing its role as a maritime and energy hub. DP World’s Group CEO, Yuvraj Narayan, highlighted that the project addresses capacity constraints at Jebel Ali and enhances supply chain resilience by offering cargo owners increased choice and flexibility.
The development is expected to proceed in phases, with construction projected to take between 24 and 30 months. While the investment value and employment impact have not been disclosed, Moody’s Ratings noted that the broader logistics improvements will mitigate concentration risks from reliance on a single maritime gateway and promote better connectivity across the UAE. Increased cross-coastal cargo flows could also generate additional demand for inland transport and logistics services, though this may moderately affect port operation margins.
Overall, the Fujairah expansion represents a strategic move to safeguard the UAE’s trade routes against regional uncertainties while supporting long-term economic growth and diversification.