1 hour ago
23
The UAE is spending billions to ensure that if the Strait of Hormuz becomes a war zone, its oil keeps flowing. Presidential adviser Anwar Gargash confirmed on September 7 at the Hili Forum in Abu Dhabi that the country is aggressively expanding eastern-coast port infrastructure and fast-tracking new pipeline construction to insulate its energy exports from the fallout of the US-Iran conflict.
The centerpiece of this effort is a new West-East pipeline being built by the Abu Dhabi National Oil Company (ADNOC), which aims to double Fujairah’s export capacity to roughly 3.6 million barrels per day by 2027. As of May, that pipeline was 50% complete.
Why the Strait of Hormuz matters
About a fifth of the global oil supply passes through this narrow waterway between Iran and Oman on any given day. Iran’s escalating military posture, including missile attacks and disruptions to maritime shipping, has turned a theoretical risk into a practical one.
The existing Habshan-Fujairah pipeline already carries 1.8 million bpd of crude from Abu Dhabi’s inland fields to the port of Fujairah on the Gulf of Oman, completely bypassing the strait. That infrastructure has proven its value during recent disruptions, sustaining roughly half of the UAE’s pre-conflict export volume of approximately 3.4 million bpd.
The broader strategic pivot
UAE Minister of State for Foreign Trade Thani Al Zeyoudi put it bluntly back in June when he described the country’s goal as “zero Hormuz dependency.” Enhanced port operations at Fujairah, Dibba, and Khor Fakkan, driven by DP World and local authorities, are creating entirely new trade corridors along the UAE’s eastern coastline. Railway connections are also part of the blueprint, adding redundancy to a system that has historically relied on maritime routes through contested waters.
In August, the UAE suspended all financial transactions with Iran, a move that represented one of the most significant escalations in bilateral relations in years.
What this means for global oil markets
Pre-conflict, the UAE was exporting around 3.4 million bpd. Even with military escalations roiling the region, the existing bypass pipeline infrastructure kept approximately half that volume moving. If ADNOC hits its 2027 target, the UAE would theoretically be able to maintain its full export capacity regardless of what happens in the strait.
Saudi Arabia already operates the East-West pipeline (Petroline) connecting its eastern oil fields to the Red Sea port of Yanbu, but its capacity has historically been well below the kingdom’s total export volumes. By positioning Fujairah as a major export hub that doesn’t require Hormuz transit, the UAE is also effectively marketing its oil as more reliable than crude from producers still dependent on the strait.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) ·