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Why New UAE Port Terminals Could Matter for Global Shipping

Elena MarquezPublished 2w ago3 min readBased on 2 sources
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Why New UAE Port Terminals Could Matter for Global Shipping

DP World, a Dubai-based port company, has reached a deal to build two new container terminals in the United Arab Emirates. These terminals will sit outside the Strait of Hormuz, a narrow waterway between the Persian Gulf and the open ocean. Bloomberg reported the agreement on July 22, 2026, with SupplyChainBrain confirming the details the same day.

The terminals are deepwater facilities, meaning the water is deep enough for the largest cargo ships in the world to dock. That matters because not all ports can handle these giant vessels.

The Strait of Hormuz is a narrow passage that roughly a fifth of all the oil consumed worldwide passes through. It has long been a worry for anyone involved in shipping. If traffic through the strait is disrupted, the effects ripple out to energy markets and cargo moving between the Gulf, the Indian Ocean, Asia, and Europe.

Think of the Strait of Hormuz as a toll booth on a highway. Right now, most large ports in the region are on the Gulf side of that toll booth, so ships have to pass through it to load and unload. The new terminals would sit on the other side, letting ships skip the toll booth entirely.

The deal adds to a port portfolio that already includes Jebel Ali, DP World's main facility and one of the largest container ports in the world. Jebel Ali sits inside the Gulf, so ships going there must travel through Hormuz. The new terminals would let shippers handle cargo on the Indian Ocean side without entering the strait at all.

No further details were shared about the terminals' exact locations, how much cargo they will handle, when they will be built, or how much they will cost.

The broader context here is that Gulf countries have been trying to spread out their port and shipping infrastructure so it is not all concentrated in one vulnerable spot. Over the past two decades, they have invested heavily in ports, special economic zones, and rail links, but most of that capacity sits inside the Gulf, behind the Strait of Hormuz. A terminal complex outside that narrow passage changes the math for shipping companies, insurers, and cargo owners who have to factor in the risk of passage through the strait when deciding routes and setting prices.

For DP World, the deal adds to its already large network of ports along the Indian Ocean and East Africa. The company runs terminals across six continents. Having a UAE-based facility on the Indian Ocean side means ships can transfer cargo there without entering the Gulf at all.

The big question is whether shipping companies will actually send their vessels to these new terminals or only use them as a backup when passage through Hormuz becomes risky. That decision will depend on details that have not yet been made public: how deep the berths are, how long the docks are, what cranes are available, how well the terminals connect to roads and railways heading into Gulf markets, and how much DP World charges compared to its existing Jebel Ali port.

There is also a political angle. The UAE has tried in recent years to reduce tensions and avoid relying too much on any single relationship or trade route. Building ports that do not depend on the Strait of Hormuz staying open fits that approach. If the terminals work as planned, the UAE would have a shipping fallback that does not depend on conditions in the strait remaining stable.

The deal is an agreement to develop, not a finished project. Construction timelines, opening dates, and the full scope of what the terminals can do await future announcements.