Dubai-based logistics giant DP World has signed a framework agreement with the Port of Fujairah Authority for a 50-year concession, announcing an ambitious project that will redefine trade dynamics in the Persian Gulf. Two modern terminals will be constructed on the east coast of the UAE, along the Gulf of Oman, capable of handling the latest generation of vessels and bypassing the narrow Strait of Hormuz – through which approximately one-third of the world's oil and a third of global liquefied gas pass daily.
The project includes the construction of the Al Rugaylat container and multi-purpose terminal, as well as the Dibba cargo terminal. Al Rugaylat will handle up to 2.5 million TEUs (twenty-foot equivalent units) annually, 1.7 million tons of general cargo, and 190,000 CEUs (car equivalent units). The Dibba terminal will add another 3.6 million tons of annual general cargo capacity. Together, the two facilities will increase DP World's total container capacity in the UAE from the current 19.4 million to nearly 22 million TEUs per year – a substantial increase that points to growing demand and growing fears of shipping disruptions.
Construction will take 24–30 months and will be carried out in phases. The new facilities will be able to accommodate Ultra Large Container Vessels (ULCVs) – giant container ships with capacities exceeding 20,000 TEUs, capable of carrying world trade in unprecedented volumes. Integrated through DP World's internal logistics network with the port of Jebel Ali and the Jafza free economic zone, the new terminals will create a deep-water trade gateway outside the strait, effectively diversifying UAE routes for westbound cargo.
Officially, the project is positioned as an expansion of DP World's port ecosystem and a strengthening of the UAE's logistics network. However, its true significance is strategic. Fujairah, located on the coast of the Gulf of Oman, has already established itself as one of the world's leaders in ship bunkering and is increasingly transforming into a global maritime hub. The new terminals will be another brick in the wall of independence that the UAE, following other Gulf countries, is building from the Strait of Hormuz.
Route diversification is a matter of national security. Gulf countries are investing billions in pipelines, railways, and energy storage hubs to reduce their vulnerability to any disruptions in the strait. The UAE, one of the region's key energy exporters, has been vulnerable twice: in February 2026, when Iran began military operations against the country, vessel traffic through Hormuz effectively ceased. Saudi Arabia has its own ports on the Red Sea and can export some oil bypassing the strait; for a long time, the UAE was forced to rely solely on Hormuz. This is now changing. ADNOC, the UAE's national oil company, has already completed 50% of the construction of the West-East Pipeline, laid across the Arabian Peninsula to the coast of the Gulf of Oman.
For DP World, the project is another step in strengthening its position as a global operator. The corporation offers customers a new alternative: in case of disruptions in Hormuz, their vessels can call at Fujairah, bypassing risk and delays. With the Jebel Ali capacity reaching high utilization, the new terminals will provide the necessary reserve capacity for long-term growth in a region that remains one of the world's main trade hubs.
How will the project reshape the strategic landscape of the Persian Gulf, where control over Hormuz remains the main lever of influence? The answer will come within the next three years, when the first cranes of Al Rugaylat begin to rise on the east coast of the UAE.
