DP World secures 50-year deal to develop Fujairah's Al Rughayalat and Dibba ports

DP World secures 50-year deal to develop Fujairah's Al Rughayalat and Dibba ports

DP World and the Fujairah Ports Authority have signed a 50-year concession agreement to develop Al Rughayalat Port and Dibba Port, establishing a new deep-water commercial gateway on the Arabian Sea that will significantly expand the emirate's container, vehicle and general cargo handling capacity.

The agreement was signed in the presence of Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, Crown Prince of Fujairah, and marks a major expansion of port infrastructure on the UAE's eastern coastline.

Strategic positioning outside Hormuz chokepoint

The development leverages Fujairah's strategic location approximately 70 nautical miles from the Strait of Hormuz, the UAE's only multipurpose seaport on the eastern coastline with direct access to the Gulf of Oman and Arabian Sea. This positioning allows vessels to bypass the strait, through which approximately 20 million barrels per day of crude oil normally flow, representing about one-fifth of global petroleum trade.

Fujairah's role as a maritime bypass hub extends beyond the new ports. The UAE's Abu Dhabi Crude Oil Pipeline already carries up to 1.5 million barrels per day from Habshan to Fujairah, bypassing the Strait of Hormuz, with plans underway to expand capacity to 3 million barrels per day.

Al Rughayalat to handle 2.5 million containers annually

Al Rughayalat Port has been designed to handle up to 2.5 million twenty-foot equivalent units annually, along with 1.7 million tonnes of general cargo and 190,000 car equivalent units each year. The facility will accommodate the latest generation of ultra-large container ships.

Dibba Port, which is already managed by Fujairah Ports Authority and operates bulk products handling near the border with Oman's Musandam Peninsula, will add up to 3.6 million tonnes of annual general cargo capacity through the development program.

Once operational, DP World's container-handling capacity in the UAE will rise from 19.4 million twenty-foot equivalent units to nearly 22 million. The company currently operates more than 60 ports and terminals worldwide with a global capacity of 109 million TEU, handling approximately 10 percent of global container traffic annually.

Integrated logistics zones and domestic connectivity

Each port will be integrated with its own logistics zone, creating connected networks for cargo storage, distribution and onward transport. The terminals will link to Jebel Ali Port and the Jebel Ali Free Zone through DP World's domestic logistics network.

The new ports will benefit from existing inland infrastructure established earlier this year. In the first quarter of 2026, AD Ports Group created land bridge corridors to transport cargo from Fujairah and Khor Fakkan to Khalifa Port, Jebel Ali Port and Sharjah using 800 trucks and four new daily rail services operated by Etihad Rail.

Fujairah Port currently handles around 12,000 vessels annually and approximately 1 million TEU, while serving as one of the world's top bunkering hubs with about 7.4 million cubic metres of marine fuel sales in 2025. The port's origins date to 1978, when construction began as part of the UAE's economic diversification strategy, with full operations commencing in 1983.

Construction timeline and investment capacity

The project will be delivered in phases, with construction expected to take between 24 and 30 months from the start of work. DP World invested $3.1 billion in capital expenditure globally in 2025 and has budgeted approximately $3 billion for 2026, focused on priority projects including Jebel Ali, India, London Gateway, Senegal and Saudi Arabia.

The development is expected to attract new investment, create employment opportunities and increase demand for logistics, transport, warehousing and maritime services in Fujairah. The agreement was attended by Essa Kazim, Chairman of DP World Group, Mousa Murad, Managing Director of the Port of Fujairah, and other senior officials.