Gulf countries invest in infrastructure to reduce dependence on the Strait of Hormuz
2026-08-31 18:42:26
According to CoinMeta, due to the disruptions in shipping through the Strait of Hormuz caused by the war in Iran, Gulf countries such as Saudi Arabia and the United Arab Emirates are investing in port, pipeline, and railway projects. Saudi Arabia is studying the expansion of an east-west crude oil pipeline, considering adding an additional 1 million to 2 million barrels per day on top of the current capacity of 7 million barrels per day. The UAE is accelerating the construction of the Fujairah Port; DP World has been granted a 50-year concession to develop two new docks, with Al Rugaylat dock having an annual handling capacity of 2.5 million TEU, and Dibba dock gaining an additional 3.6 million tons of cargo handling capacity. The new crude oil pipeline being promoted by Abu Dhabi is expected to be put into operation in 2027, which will double the UAE's crude oil export capacity via Fujairah, allowing it to bypass the Strait of Hormuz. According to a Reuters survey in July, Qatar's economy is expected to shrink by 8.1% in 2026, while Kuwait's is expected to grow by 1.4%. Kpler data shows that only 7 bulk cargo ships passed through the Strait of Hormuz last Thursday.
Source:Internet
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