Gulf countries invest in infrastructure to reduce dependence on the Strait of Hormuz

Due to the Iran War, shipping in the Strait of Hormuz has been disrupted, and Gulf countries such as Saudi Arabia and the United Arab Emirates are investing in port, pipeline, and railway projects. Saudi Arabia is studying the expansion of the east-west crude oil pipeline, considering adding 1 to 2 million barrels per day on top of the existing transportation capacity of 7 million barrels per day. The UAE is accelerating the construction of Fujairah Port, and DP World has obtained a 50 year franchise to develop two new terminals. The Al Rugaylat terminal has an annual processing capacity of 2.5 million TEUs, and the Dibba terminal has added 3.6 million tons of cargo processing capacity. The new crude oil pipeline promoted by Abu Dhabi is expected to be put into operation in 2027, doubling the UAE's crude oil export capacity through Fujairah bypassing the Strait of Hormuz. According to a survey conducted by Reuters in July, Qatar and Kuwait are expected to shrink by 8.1% respectively in 2026, while Saudi Arabia is expected to grow by 1.4%. According to Kpler data, only 7 bulk commodity ships passed through the Strait of Hormuz last Thursday.