Abu Dhabi is preparing to commit tens of billions of dollars toward port and logistics infrastructure located outside the Strait of Hormuz, according to a report published by Bloomberg and syndicated by The Japan Times. The initiative forms part of a wider emirate strategy referred to by officials as "Zero Hormuz", designed to establish alternative shipping routes for crude oil, petrochemicals, aluminium, and other commodities in the event of waterway disruptions.
The investment push is overseen by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan, who serves as chairman of L'imad Holding, a $300 billion state-owned wealth and investment platform. Sheikh Khaled took the helm of the fund shortly before regional military conflict heightened shipping risks across the Persian Gulf.
The infrastructure drive accelerated following L'imad's move to take AD Ports Group private in a transaction valuing the port operator at nearly $9 billion. As part of that process, L'imad subsidiary ADQ proposed acquiring remaining publicly traded shares at 6.25 dirhams per share, representing a 23% premium over the pre-offer closing price.
People familiar with the matter told Bloomberg that Abu Dhabi leadership is specifically focusing on expanding capacity in Fujairah, an Emirati port city located on the Gulf of Oman beyond the Strait of Hormuz. Fujairah already functions as an alternative pipeline terminus and export outlet for UAE crude and is set to serve as the anchor hub for trade routes that bypass the strait entirely.
Sources
- The Japan Times · 2026-09-30
