The United Arab Emirates: A Canal to Bypass the Strait of Hormuz ?
Faced with the vulnerability of the Strait of Hormuz, the United Arab Emirates is accelerating a major transformation of its energy and port infrastructure. The goal is to ensure that the country can continue exporting oil and maintaining trade flows without relying on this strategic passage, which is partly controlled by Iran.
The United Arab Emirates: A Canal to Bypass the Strait of Hormuz?
The United Arab Emirates: A Canal to Bypass the Strait of Hormuz?
The Strait of Hormuz has for decades been one of the most critical chokepoints in global trade. Before the disruptions caused by the war with Iran, around 20 million barrels of oil passed through it every day. Any closure or blockade therefore poses a direct threat to Gulf economies and global energy supplies. For the United Arab Emirates, this dependence has become a major strategic risk. However, the country has a significant geographical advantage: unlike several of its neighbors, it also has access to the Gulf of Oman, beyond the Strait of Hormuz.
Fujairah, the UAE’s New Oil Export Gateway
At the heart of this strategy lies Fujairah. The port is connected to Abu Dhabi’s oil facilities by the Abu Dhabi Crude Oil Pipeline (ADCOP), an approximately 400-kilometer pipeline that allows crude oil to be transported directly to the Gulf of Oman.
Its current capacity stands at nearly 1.8 million barrels per day. However, the UAE is building a second pipeline that would nearly double its export capacity through Fujairah, with a target of around 3.6 million barrels per day from 2027.
However, the strategy goes beyond oil. Port infrastructure in Fujairah, Khor Fakkan and Dibba is expected to be expanded to shift some activities currently dependent on ports located inside the Persian Gulf. Another pipeline dedicated to refined petroleum products, such as diesel and jet fuel, is also being considered.
Could the UAE Go as Far as Digging a Giant Canal?
This is where the project takes on a spectacular dimension. Among the scenarios that have resurfaced is a long-standing idea to dig a canal of around 180 kilometers between the Dubai area and the UAE’s eastern coast, allowing ships to reach the Arabian Sea directly without passing through the Strait of Hormuz.
First proposed in 2008, such a project would require crossing mountainous terrain and could involve several hundred billion dollars in investment. At this stage, however, it remains more of a strategic option than an officially approved construction project.
The immediate priority therefore remains far more concrete: pipelines, terminals and ports. This strategy could significantly reshape the economic balance of the Gulf. By developing a genuine energy gateway to the Indian Ocean, the UAE aims not only to secure its exports but also to reduce its long-term exposure to tensions with Tehran.
The Strait of Hormuz would remain essential for part of the region’s trade. But Abu Dhabi now wants a safeguard: if Hormuz closes, the UAE economy must be able to keep operating.
