Why is UAE building a new port next to the Strait of Hormuz? Why is the breaking of Iran’s economic bomb special?

If you think that Dubai is only a city of tall buildings and shopping malls, then you are wrong. The real strength of Dubai is its Jebel Ali port. It is the largest container port in the Middle East and one of the largest container ports in the world. Goods worth millions of dollars move between Asia, Africa, Europe and West Asia from here. Last year this port alone handled 156 lakh container units (TEUs). However, the Persian Gulf is its major weakness, because every ship coming and going here passes through the Strait of Hormuz. For this reason, Dubai has thrown a new dice i.e. Fujairah Port. After all, what is the new port, why is it being built next to Hormuz and what will be the benefit of it…

Dubai’s biggest weakness: Jebel Ali Port

The lifeblood of Dubai’s economy is its famous Jebel Ali Port. It is the largest port in the Middle East and one of the top-10 ports in the world. Goods from all over the world first come here and then go from here to the whole world. But a big limitation of this port is that it is located inside the Persian Gulf. This means that to reach Jebel Ali every ship must first pass through the Strait of Hormuz.

Hormuz is a very narrow sea route, over which Iran has a lot of control. Whenever tension increases between Iran and Western countries, Iran threatens to close Hormuz. Recently, during the US-Iran war, this threat became a reality and Hormuz was closed for some time. When Hormuz was closed, Jebel Ali Port was completely cut off from the world. This is the weakness that Dubai now wants to eliminate.

Fujairah Port: ‘Plan B’ to bypass Hormuz

To overcome this weakness, UAE decided to convert the port of Fujairah into a ‘mega port’. This responsibility has been taken up by Dubai’s port operator company DP World. Fujairah is an area of ​​UAE which lies directly on the shores of the Indian Ocean. There is no need to pass through the Strait of Hormuz to go to the sea from here. According to the Financial Times report, billions of dollars are being spent on this project so that Fujairah Port can become a strong alternative to Jebel Ali.

According to the report of Independent, the purpose of this new port is not only to transport goods. This will be a huge logistics hub, where there will be huge terminals for storing oil. Fujairah already has a large oil storage infrastructure and it is being expanded further. The idea is to first transport oil from Gulf countries to Fujairah through pipeline. Then without going to Hormuz, it should be sent directly to the whole world through big tankers.

Special features of this project:

• This will include a new multi-purpose port and a new container terminal at the existing port.
• DP World is negotiating a term sheet with government officials.
• According to a senior company official, the new port can be completed in 18 months.
• Fujairah already has a storage capacity of 18 million cubic metres.

DP World is already rerouting cargo from Jebel Ali to the east coast ports of Fujairah and Khor Fakkan.

Why is the construction of Fujairah Port so important?

Experts point out three major requirements for the construction of Fujairah Port:

• Hormuz protected from ‘economic bomb’: This project is a direct answer to the ‘economic bomb’ that Iran can create by closing Hormuz. If ever in the future, Iran closes Hormuz completely and for a long time, then this ‘bypass system’ is being prepared so that the economy of Dubai does not get ruined. It is like an economic insurance policy for Dubai.
• New backbone of oil business: Not only UAE, Saudi Arabia and Abu Dhabi are also heavily dependent on Hormuz for their oil exports. Saudi Arabia has already built its ‘East-West Pipeline’, which takes oil to the Red Sea. Now Abu Dhabi has also built a huge pipeline which brings its oil directly to Fujairah Port. That is, the entire region is now engaged in creating a strong alternative to Hormuz. Fujairah is going to become the most important center of this strategy.
• New supply chain for the entire Gulf region: This project will give the UAE a permanent and alternative logistics gateway outside Hormuz. The UAE government is already planning to expand the ports of Fujairah, Dibba and Khor Fakkan. Along with this, it is working on the strategy of building roads, railways and pipelines.

How effective will Dubai’s visionary move be?

Dubai is building this new mega port in Fujairah to secure not just one port, but its entire economic future. This is a move that will neutralize Iran’s control over Hormuz. This is proof that the world no longer wants to be a ‘hostage’ of Hormuz and is preparing an alternative that can continue trade and oil supply at any cost. In the times to come, Fujairah Port will emerge not as a competitor to Jebel Ali, but as an ’emergency door’ that will replace it in times of danger.