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

On 31 August, it was reported that Gulf States, such as Saudi Arabia and the United Arab Emirates, were 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 increase of 1 million to 2 million barrels per day over the existing capacity of 7 million barrels per day. The UAE has accelerated the construction of the port of Fujairah, and DP World has been licensed for the development of two new docks for 50 years, of which Al Rugayat has an annual processing capacity of 2.5 million TEU and Dibba has added 3.6 million tons of cargo processing capacity. The new crude oil pipeline advanced by Abu Dhabi is expected to come into production in 2027, doubling the ability of the United Arab Emirates to export crude oil through Fujairah to bypass the Strait of Hormuz. Citing Reuters survey of July, Qatar and Kuwait are projected to contract 8.1 per cent in 2026 and Saudi Arabia is projected to grow 1.4 per cent. According to Kpper, last Thursday there were only seven large commercial ships passing through the Strait of Hormuz. Kim Xian