United Arab Emirates develops alternative energy export routes amid US-Iran tensions

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The United Arab Emirates is investing billions to eliminate its dependence on the Strait of Hormuz, through which approximately one-fifth of global oil supply transits daily. Abu Dhabi is accelerating construction of a new West-East pipeline by ADNOC, aiming to double Fujairah’s export capacity to 3.6 million barrels per day by 2027, with 50 percent of the project completed as of May. The existing Habshan-Fujairah pipeline already carries 1.8 million barrels per day and has sustained roughly half of the UAE’s pre-conflict export volumes during recent regional disruptions. The official goal is zero Hormuz dependency, supported by expanded port infrastructure at Fujairah, Dibba, and Khor Fakkan. In August, the UAE suspended all financial transactions with Iran, representing one of the most significant escalations in bilateral relations in years.

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