East Coast gateway set to process nearly half of re-exports now moving via Jebel Ali, says Moody’s.
Dubai: The UAE’s planned terminals in Fujairah will establish an alternative route for critical imports, safeguard re-export trade and reduce the country’s reliance on a single maritime gateway, according to Moody’s Ratings.
Last week, DP World signed an agreement in principle with the Fujairah Ports Authority to develop the Al Rugaylat Container and Multi-Purpose Terminal and the Dibba General Cargo Terminal under a 50-year concession.
The new terminals will provide free zone tenants with an alternative route for importing and re-exporting goods, helping to mitigate potential disruptions in the event of a closure of the Strait of Hormuz, according to a Moody’s Ratings research note published on Friday.
“They will also strengthen the UAE’s supply chains by providing an alternative entry point for essential cargo, including construction materials used by the real estate sector,” Moody’s said.
Why the location matters
Fujairah’s strategic location is central to the project’s significance. While Jebel Ali is accessed through the Strait of Hormuz, Fujairah sits on the Gulf of Oman with direct access to the Indian Ocean. That gives the UAE an alternative maritime gateway, allowing cargo to bypass the Strait of Hormuz if shipping through the waterway is disrupted for an extended period.
The strategic importance of the expansion has grown following disruptions to shipping through the Strait of Hormuz since March 2026, which have negatively affected cargo volumes and earnings at Jebel Ali, according to Moody’s Ratings.
“Located outside the Gulf, Fujairah offers direct access to the Indian Ocean, making it a strategically important gateway for liner shipping,” Alphaliner said in an analysis cited by shipping publication The Loadstar.
Fujairah’s east coast location means vessels transporting goods to the UAE can call at the port without first passing through the Strait of Hormuz. Cargo can then be transported overland to businesses, logistics hubs and consumers across the country, providing a more resilient alternative supply route.
How the new route will work
The new terminals will be connected to Jebel Ali Port and Jebel Ali Free Zone through DP World’s inland logistics network. This will allow cargo owners to move goods between the UAE’s east and west coasts and onward to domestic and international markets.
The infrastructure is designed to complement rather than replace Jebel Ali. It will extend Jebel Ali’s logistics and free-zone ecosystem to Fujairah, giving businesses greater flexibility in importing, distributing and re-exporting goods.
For residents and companies, the additional route will provide greater supply chain resilience by creating another pathway for goods entering the country. It could also help prevent cargo from permanently shifting to competing regional ports during periods of prolonged disruption.
DP World Group Chief Executive Officer Yuvraj Narayan said the project would add capacity as Jebel Ali continues to operate at high utilisation. “Fujairah strengthens what Jebel Ali already delivers — a single, global integrated platform for moving goods across global supply chains and within the UAE and beyond,” Narayan said.
“With Jebel Ali operating at high utilisation, this development will provide additional capacity to support long-term growth. For cargo owners, it means greater flexibility, more choice and stronger supply chain resilience,” DP World said.
Strengthening UAE re-export trade security
DP World expects the development to increase the UAE’s annual container-handling capacity by around 13%, from 19.4 million twenty-foot equivalent units (TEUs) to nearly 22 million TEUs.
Moody’s described the increase as relatively modest but estimated that the additional capacity could accommodate close to half of the re-export volumes currently handled through Jebel Ali.
Re-export cargo is considered more vulnerable to relocation than goods destined for the UAE domestic market. Companies that use the UAE as a regional hub to serve international markets can redirect shipments to competing ports if existing trade routes face prolonged disruption.
“The new terminals therefore enhance DP World’s ability to retain these volumes and preserve the competitiveness of its UAE logistics ecosystem,” Moody’s said.
Retaining this trade could support activity across the wider logistics sector, including ports, free zones, warehousing, road transport, freight forwarding, customs clearance and distribution services. Moody’s did not provide an estimate of the project’s broader impact on economic output, trade flows or employment.
The Al Rugaylat terminal will have annual capacity of up to 2.5 million TEUs, along with 1.7 million tonnes of general cargo and 190,000 car equivalent units. The deep-water facility will be capable of handling the latest generation of ultra-large container vessels.
The Dibba terminal will add capacity for up to 3.6 million tonnes of general cargo annually, strengthening the UAE’s ability to handle non-containerised shipments.
Investment and jobs in Fujairah
The project is expected to bring additional port and logistics activity to Fujairah, which has established itself as a maritime and energy hub due to its strategic location outside the Strait of Hormuz.
Sheikh Saleh Bin Mohamed Al Sharqi, Chairman of the Fujairah Ports Authority, said the terminals would attract investment and expand the emirate’s operational capacity.
“The Al Rugaylat and Dibba terminals will bring world-class operating capabilities, increased capacity and new investment to the emirate,” he said.
“We look forward to working with DP World to deliver a project that will benefit customers, communities and the UAE’s wider economy,” he said.
DP World said the development of Fujairah’s ports and logistics zone would support investment, employment and long-term economic opportunities. The company did not disclose the value of the investment or provide an estimate for job creation.
Increased cargo movement between the UAE’s east and west coasts is expected to boost demand for inland transport and logistics services. Moody’s noted that this could slightly dilute DP World’s margins compared with its higher-margin port operations.
However, the rating agency said the broader network benefits would reduce the concentration risk associated with relying on a single maritime gateway and improve connectivity across the UAE.
Three-year construction plan
Moody’s described the agreement as credit positive for DP World, which holds a Baa2 rating with a stable outlook. “We view the agreement as credit positive for DP World because it enhances the resilience of its ports network and supports the stability of its revenue base,” the agency said.
The development will require capital expenditure, but Moody’s does not expect it to materially increase DP World’s projected capital spending of $3 billion in 2026.
DP World had $4.6 billion in unrestricted cash at the end of 2025, along with around $1.6 billion in available committed credit facilities and approximately $1 billion in additional term-loan capacity.
Moody’s said these funding sources provide the company with significant financial flexibility to fund the project and manage potential execution risks while maintaining credit metrics consistent with its current rating.
The project’s scale and 50-year concession also highlight the significant barriers to entry in the GCC ports sector, according to the agency. Jebel Ali’s scale, integrated logistics offering and diversified cargo base continue to reinforce its competitive position.
Construction will be carried out in phases and is expected to take approximately 24 to 30 months from the start of work. Moody’s referred to an overall construction timeline of around three years and said the project’s credit benefits would emerge gradually as the terminals become operational.
