UAE Builds East Coast Gateway to Bypass Hormuz Shipping Choke Point

Fujairah’s eastern shoreline is about to get a lot busier. DP World has struck a deal with Fujairah Ports Authority to build two new deepwater terminals on the UAE’s east coast, creating alternative export routes as shipping lanes through the Strait of Hormuz face ongoing strain.

The project reflects a clear strategic calculation. As geopolitical tensions keep the Hormuz corridor uncertain, port operators and traders are pricing in the need for redundancy. Fujairah, already a critical hub on the UAE’s eastern shore, stands to become even more central to regional trade flows. The new terminals will add capacity precisely where it matters most for companies seeking to bypass the world’s most congested chokepoint.

The timing aligns with the UAE’s wider push to cement itself as a trade hub. The government is pursuing what it calls “Hormuz-proofing” of its logistics infrastructure, even as it pursues a more conventional diplomatic strategy: expanding its network of trade relationships. Foreign Trade Minister Thani bin Ahmed Al Zeyoudi told state news agency Wam of plans to finalize between five and seven new comprehensive economic partnership agreements (CEPAs) by year-end, adding to the 37 the country has already signed.

Of those 37 agreements, 18 are currently in force. Negotiations with roughly 20 countries are underway, with deals involving the Eurasian Economic Union and the Philippines expected to take effect within two to three months. Talks with Rwanda, Ghana, and Zambia are in their final stages, while negotiations with Canada are nearing completion. Bangladesh and Peru are also advancing through their own tracks.

Some negotiations are moving more slowly than anticipated. The EU-UAE agreement, which began in April of the previous year, has progressed more gradually than expected. Foreign Trade Minister Thani bin Ahmed Al Zeyoudi told state news agency Wam in January that talks were in their final stretch, but momentum has since slowed.

Meanwhile, the UAE is pursuing more ambitious trade architecture. It is exploring a bilateral CEPA with the United Kingdom that would extend beyond the existing GCC-UK trade agreement, and it has begun preparatory discussions on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, one of the world’s largest regional trade blocs.

These moves sit alongside a real estate market showing mixed signals. Dubai’s office market saw rents plateau for the first time since the first half of 2021, while Abu Dhabi’s leasing volumes declined for the first time in the current cycle. Yet developers are not retreating. Aldar launched the AED 100 billion Marsa Al Saadiyat project, the final phase of Saadiyat Island’s development, which will eventually house more than 58,000 residents. The scale of the investment suggests confidence in longer-term growth despite near-term headwinds in certain sectors.

Across the region, broader geopolitical pressures continue to shape business decisions. Houthi attacks on shipping in the Red Sea have intensified the strategic importance of alternative routes. The UK’s Maritime Trade Operations Center confirmed that a tanker was struck off Al Shuqaiq on Saudi Arabia’s coast after the Houthis reported hitting two vessels. Brent crude jumped past USD 95 a barrel in response, reflecting the critical role the Red Sea has played as a workaround for Gulf exports while the Strait of Hormuz remains a zone of concern.

The US and Saudi Arabia signed a civil nuclear cooperation agreement this week, granting the kingdom a pathway to enrich uranium domestically. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman signed the 30-year pact, which provides American firms the opportunity to supply technology and expertise for the Saudi nuclear program. The agreement represents a latitude on uranium enrichment that Washington has not extended to other Gulf partners.

For the UAE, the convergence of port expansion, trade agreements, and regional volatility reflects a strategy of building resilience through infrastructure investment and diversified partnerships. The Fujairah terminals and the expanding CEPA network both serve the same underlying goal: reducing dependence on any single corridor or market. Whether the EU deal can recover its earlier momentum may be the clearest test of how far that diversification strategy can actually reach.