July 24, 2026
3 mins read

DP World Backs Hormuz Alternative

DP World will develop two major terminals in Fujairah under a 50-year agreement, boosting UAE cargo capacity, logistics resilience and global maritime connectivity beyond Hormuz, reports Asian Lite News Desk

DP World has signed a landmark 50-year concession agreement with the Fujairah Ports Authority to develop two new container and multipurpose terminals on the UAE’s eastern coast, strengthening the country’s maritime infrastructure and expanding cargo capacity outside the Strait of Hormuz.

The agreement, signed in the presence of H.H. Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, Crown Prince of Fujairah, marks one of the UAE’s largest recent port expansion projects and is expected to reinforce Fujairah’s growing role as a global logistics and trade hub.

The development will see the construction of the Al Rugaylat Container Terminal and the expansion of Dibba Al Fujairah Port, significantly increasing the emirate’s cargo handling capabilities while supporting the UAE’s long-term trade and economic ambitions.

The project comes as regional shipping routes remain under pressure following heightened tensions in the Gulf, with vessel traffic through the Strait of Hormuz facing disruptions in recent months. Located on the Gulf of Oman, Fujairah provides direct access to international shipping lanes without requiring vessels to transit the Strait, enhancing supply chain resilience for regional and global trade.

Under the agreement, Al Rugaylat will have the capacity to handle up to 2.5 million twenty-foot equivalent units (TEUs) of container traffic annually. The terminal will also process up to 1.7 million tonnes of general cargo and around 190,000 Car Equivalent Units (CEUs) each year.

The adjacent Dibba Al Fujairah Port will add another 3.6 million tonnes of annual general cargo capacity, creating a modern logistics gateway capable of serving growing regional and international demand.

Once completed, the new facilities will increase DP World’s total container handling capacity across the UAE from 19.4 million TEUs to nearly 22 million TEUs annually. The expansion will also substantially strengthen the company’s capabilities in handling general cargo and roll-on/roll-off (Ro-Ro) traffic.

The terminals will be linked with DP World’s inland logistics network, connecting directly to Jebel Ali Port and the Jebel Ali Free Zone (Jafza). The integration is expected to create a seamless end-to-end logistics platform, enabling cargo owners to move goods more efficiently between ports, warehouses, industrial zones and final markets across the UAE and beyond.

Construction will be carried out in phases and is expected to take between 24 and 30 months from the commencement of work.

Speaking at the signing ceremony, Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi described the agreement as a strategic milestone aligned with the vision of Fujairah’s Ruler, H.H. Sheikh Hamad bin Mohammed Al Sharqi, to strengthen the emirate’s position as a leading global maritime and logistics centre.

He said the project would enhance Fujairah’s economic infrastructure, attract high-quality investments, improve supply-chain efficiency and generate new employment opportunities while supporting the UAE’s sustainable economic development goals.

H.H. Sheikh Saleh bin Mohamed Al Sharqi, Chairman of the Fujairah Ports Authority, said the partnership with DP World represents an important step in the continued growth of Fujairah as one of the region’s key maritime gateways.

He noted that the Al Rugaylat and Dibba terminals would introduce world-class operating standards, expand cargo capacity and bring fresh investment into the emirate, benefiting businesses, local communities and the wider UAE economy.

DP World Chairman Essa Kazim said the investment reflects the company’s confidence in the UAE’s future as one of the world’s leading trade and logistics hubs.

He said the development builds on the success of Jebel Ali while deepening DP World’s long-standing commitment to strengthening the country’s strategic role in global commerce.

Capt. Mousa Murad, Managing Director of Fujairah Ports Authority, said the new terminals would significantly expand Fujairah’s port infrastructure and improve services for cargo owners and logistics customers.

He added that combining Fujairah’s strategic geographic location with DP World’s global operational expertise would create modern, efficient facilities that support regional trade, strengthen connectivity and meet the highest international standards.

DP World Group Chief Executive Officer Yuvraj Narayan said the expansion complements the capacity already available at Jebel Ali, providing additional room to support future growth in cargo volumes.

He said customers would benefit from greater flexibility, more routing options and stronger supply-chain resilience as international trade continues to evolve.

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