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

Gulf States such as Saudi Arabia and the United Arab Emirates are investing in port, pipeline and railway projects because of the obstruction of shipping in the Strait of Hormuz as a result of the Iranian war. Saudi Arabia is studying the expansion of the East-West crude oil pipeline and is considering an additional 1 to 2 million barrels per day over the existing capacity of 7 million barrels per day. The United Arab Emirates has accelerated its efforts to build the port of Fujairah, and the DP World has been licensed for 50 years to develop two new docks, of which the Al Rugayat terminal has an annual processing capacity of 2.5 million TEU and the Dibba terminal has an additional 3.6 million tons of cargo processing capacity. The new crude oil pipeline advanced by Abu Dhabi, which is expected to come into production in 2027, will double the ability of the United Arab Emirates to export crude oil through Fujairah to bypass the Strait of Hormuz. According to a July Reuters survey, the economy of Qatar and Kuwait is projected to shrink by 8.1 per cent in 2026, respectively, and Saudi Arabia is projected to grow by 1.4 per cent. According to Kpler data, only seven large commercial ships passed through the Strait of Hormuz last Thursday。