UAE aims to eliminate oil-sector reliance on Strait of Hormuz by Dec. 31, 2026
UAE Minister Thani Al Zeyoudi announced a push to reduce the country’s oil-sector reliance on the Strait of Hormuz to zero by December 31, 2026, accelerating alternative export routes and logistics upgrades.
Zero dependence target for Strait of Hormuz by end of 2026
The UAE plans to eliminate oil-sector transit via the Strait of Hormuz by December 31, 2026, a goal outlined by Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi. Officials say the initiative targets complete operational shifts for crude and refined oil flows to alternative corridors, reducing chokepoint exposure for national energy exports. The minister described the timeline as achievable given current project momentum and recent investments in terminals and overland links.
Study of a third export corridor under way
Authorities are studying a third export corridor designed not only to replace current dependence on the Strait of Hormuz but also to absorb future production growth. The proposed corridor would provide redundancy across sea and land routes, helping prevent bottlenecks and maintain export resilience. Planning includes assessments of capacity, security, and integration with existing port and rail infrastructure.
Rail and petrochemicals projects to boost throughput
The government is fast-tracking rail connections and petrochemical pipeline development to improve internal logistics and export continuity. Plans include accelerating the Etihad Rail connection to Khorfakkan and Dibba to streamline movement between ports and inland hubs. A dedicated petrochemical export line is also being developed to move high-volume products efficiently to regional and global markets.
Ports expansion and trucking capacity increased
Expansion projects at Fujairah, Khorfakkan, Duba and main national ports are central to the strategy to divert shipments away from the Strait of Hormuz. Dubai’s Jebel Ali has recently announced capacity enhancements, and regional truck fleet growth is being promoted to ensure faster hinterland distribution. These upgrades are intended to create rapid throughput at eastern seaports and seamless handoffs to land transport.
New trade corridors linking Basra, Turkey and Syria
The UAE is expanding overland trade corridors, testing routes from Abu Dhabi to Iraq’s Basra and onward to Turkey and Syria as strategic alternatives. Initial trials of the Basra–Abu Dhabi corridor reportedly performed well, and authorities plan significant investment to scale up operations and speed freight movement. Ministers said the Turkey–Basra axis will receive expedited investment to strengthen the network connecting Gulf ports with Eurasian markets.
Reforming export finance and boosting non-oil trade
Officials are transforming the national export credit agency into a more profitable, capitalized institution to compete with global export insurers. The move aims to increase risk capacity and offer stronger financing and insurance support for Emirati exporters entering new markets. At the same time, the UAE expects non-oil foreign trade to reach AED 4 trillion by year-end 2026 if current momentum continues, reflecting stronger industrial output and trade diversification.
Export performance and international negotiations
Exports have risen as a share of total trade, reaching 23.4 percent in the first half of 2026, up from 21.3 percent a year earlier and 16.9 percent in 2023. Al Zeyoudi credited industrial policy, local content initiatives and support for manufacturing for the improvement in export flows and domestic goods availability. The UAE is also negotiating comprehensive economic partnership agreements with 20 countries, with talks expected to conclude with the European Union by the end of 2026.
The minister highlighted ongoing private-sector projects in Syria led by Emirati investors, noting that most remaining approvals and legal formalities are being finalized. Implementation steps for those Syrian projects are anticipated to commence within two to three months, alongside plans to develop free zones and expand Emirati investments across the Levant. Officials emphasized these regional investments will tie into the broader logistics and trade strategy once operational clearances are in place.