The United Arab Emirates (UAE) announced its goal to eliminate reliance on the Strait of Hormuz, citing vulnerabilities exposed during the recent conflict with Iran. Following Operation Epic Fury, Iran's actions to close the strait led to a significant disruption in shipping, causing a global energy crisis and economic impacts on the UAE and neighboring Gulf states. In response, UAE Minister of Foreign Trade Thani Al Zeyoudi stated that the country is expanding overland routes for oil and natural gas to bypass the strait entirely.
Zeyoudi emphasized that the UAE is moving toward having zero dependency on the strait, regardless of its operational status. He noted that the UAE is fast-tracking the construction of a second pipeline to transport oil and liquefied natural gas overland to eastern ports, with completion expected next year. Currently, the UAE relies on the Habshan-Fujairah pipeline, which can transport up to 1.8 million barrels per day.
Under OPEC quotas, the UAE produced between 3.2 and 3.6 million barrels per day, but it has set a target of 5.2 million barrels per day by 2027, necessitating the construction of additional infrastructure. The planned investments will also enhance rail and road networks connecting oil and gas fields to eastern ports, while a fourth major harbor is under consideration.
Despite these developments, the UAE will continue to depend on its major port in Dubai for container shipping, as transporting goods outside of oil and gas by land remains more expensive. The conflict with Iran has shifted the UAE's strategic posture in the region, leading to a more assertive stance, although recent reports suggest a potential softening of this approach in light of the war's consequences.