Strait of Hormuz: UAE plan pipeline bypass

The United Arab Emirates could play a central role in making oil transports more independent of the Strait of Hormuz. The focus is on the port of Fujairah, which is located east of the strait on the Gulf of Oman. Oil exports can be shipped from there without having to pass through the bottleneck.

Even before the Iran war, about half of the UAE's oil exports ran via the already existing Habshan pipeline to Fujairah. A volume of 1.8 million barrels per day is cited. One barrel equals 159 liters. With a new pipeline from Jebel Dhanna to Fujairah, an additional 1.5 million barrels per day are to be able to be transported. According to Hussain Abdul-Hussain of the think tank Foundation for Defense of Democracies, this would allow the UAE to meet its previous OPEC quota of 3.3 million barrels per day without sending oil through the Strait of Hormuz. That would make the country the "most important energy corridor in the world," Abdul-Hussain said.

This would make the UAE one of the best-protected oil exporters in the region.

How Fujairah is to become an energy hub

The port of Fujairah gains a strategic function through this infrastructure. Pipelines, storage facilities and port installations form the basis for an alternative export axis on the Gulf of Oman.

Hussain Abdul-Hussain puts it this way on the platform X: "With superior, low-CO2 production, first-class pipelines, enormous storage capacities and port facilities, the UAE are now developing into the region's energy center," the researcher writes on "X".

Other Gulf states could also be connected to this hub. Kuwait could connect a pipeline and deliver an additional three million barrels per day. For Iraq, a possible potential of four million barrels per day is mentioned, though only with prior expansion of the pipeline infrastructure. Qatar, too, could repurpose its Dolphin pipeline to export LNG via Fujairah - but to do so would first have to distance itself from the Muslim Brotherhood.

Costs and completion

Commissioning is currently being targeted for 2027. According to reports, the project has already been partially completed. 

Official total costs have so far not been comprehensively published by the UAE. In the public debate, however, the project is classified as a billion-dollar infrastructure project, because in addition to the pipeline itself, pumping stations, terminals and security measures are also necessary. Depending on the technical design and accompanying infrastructure, the investments can rise considerably.

What role rail logistics plays

In addition to the pipelines, the UAE is relying on the expansion of its rail network. Etihad Rail opened a 900-kilometer extension in 2023 that connects cities from Ghuwaifat to Fujairah. This creates an additional logistical corridor between the Emirates and the port on the Gulf of Oman.

Another project is intended to connect the UAE with Oman. Hafeet Rail, a joint venture of Etihad Rail, Oman Rail and Mubadala Investment, most recently reported a completion rate of 40 %, according to the report. Etihad Rail described the project in a company statement as "one of the region's most significant strategic joint projects in the areas of infrastructure, transport and logistics."

For industrial and energy logistics, this combination of pipeline, port and rail is crucial. It creates additional transport options and reduces dependence on a single maritime chokepoint.

Why the Strait of Hormuz remains a risk

The significance of the projects results from the location on the Strait of Hormuz. Iran continues to hold the waterway virtually hostage. Cargo and tanker ships are stuck in the Persian Gulf, causing oil and gas to be lacking on the world market.

This makes the Strait of Hormuz not only a geopolitical, but also an industrial risk factor. The sharply increased energy prices affect production, logistics, transport costs and supply chains.

How other states bypass Hormuz

The UAE is not the only country that uses alternatives to the Strait of Hormuz. According to the report, Saudi Arabia relies on a pipeline that can transport seven million barrels of oil per day to the Red Sea port of Yanbu.

For the UAE, however, the expansion may have to continue. As of May 1, 2026, the country is to leave the Opec oil producers' cartel. As a result, it could exceed its previous production quota of 3.3 million barrels. To transport additional volumes to Fujairah, the existing capacities are therefore not yet sufficient.

The planned and existing infrastructure projects thus show a clear direction: the Gulf states are working on more resilient export routes. For the global energy supply, Fujairah could therefore continue to gain in importance.