DP World signs 50-year deal to build two new ports in UAE's Fujairah, bypassing Strait of Hormuz

· Business ARE

The United Arab Emirates will develop two new multi-purpose ports on the Arabian Sea coast of Fujairah, a project designed to allow commercial shipping to bypass the strategically sensitive Strait of Hormuz.

DP World and the Fujairah Port Authority signed a 50-year concession agreement on 22 July to build and operate the facilities. The larger, Al Rugaylat port, will handle up to 2.5 million TEUs annually, along with 1.7 million tonnes of general cargo and 190,000 car-equivalent units. A second facility at Dibba Al Fujairah will add 3.6 million tonnes of annual general cargo capacity.

Construction will be carried out in phases, with completion expected 24 to 30 months from the start of work. The project expands the UAE's port infrastructure on its eastern seaboard, outside the narrow Gulf waterway that has long been a chokepoint for regional trade.

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