economy
UAE aims to reduce reliance on Strait of Hormuz to 'zero'
The United Arab Emirates said it was aiming to reduce its reliance on the Strait of Hormuz to “zero” after the war with Iran laid bare the vulnerabilities of the key waterway.
TL;DR
- The UAE aims to achieve zero dependency on the Strait of Hormuz for its oil and gas exports.
- Plans include expanding overland routes and building new pipelines, rail, and road networks.
- The Habshan-Fujairah pipeline, completed in 2012, currently transports oil and gas overland.
- A second pipeline, the West-East Pipeline, is slated for completion next year.
- Increased production targets necessitate a third pipeline to ship full capacity overland.
- Investments will also be made in eastern ports like Dibba, Fujairah, and Khor Fakkan.
- The UAE may not entirely eliminate reliance on the strait for container shipping through Dubai.
- The war with Iran has prompted the UAE to adopt a more hawkish regional stance, though recent reports suggest a softening approach.