Abu Dhabi Invests Billions in Zero Hormuz Strategy to Safeguard Trade

Abu Dhabi is preparing to commit tens of billions of dollars to ports, pipelines, and alternative logistics infrastructure to reduce reliance on the Strait of Hormuz under a strategic initiative dubbed "Zero Hormuz," New Fortune Times reported. The drive is overseen by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan through sovereign wealth fund L'imad, which manages an estimated $300 billion following its absorption of the $260 billion wealth fund ADQ.

As part of the plan, L'imad Holding is preparing to take Abu Dhabi Ports Co. private at a valuation of nearly $9 billion, according to people familiar with the matter. The transaction is aimed at expanding alternative trade routes and upgrading infrastructure in and around Fujairah, an emirate positioned outside the Strait of Hormuz with direct access to the Gulf of Oman.

International and domestic institutional capital is backing the push. In May, L'imad established an agreement with BlackRock, Singapore's Temasek Holdings, and Abu Dhabi National Oil Co. (ADNOC) to target up to $30 billion of investment in energy transport, logistics, and water infrastructure. Sheikh Khaled, who chairs ADNOC's board executive committee, also instructed the company in May to accelerate work on a second oil pipeline designed to double export capacity through Fujairah, while DP World expands container terminal operations in the port city.

L'imad Chief Executive Jassem Bu Ataba Al Zaabi, who also chairs Abu Dhabi's Department of Finance, leads the fund's strategy and assists in coordinating assets across state investment entities managing roughly $2 trillion. Alongside the commercial investments, Abu Dhabi has maintained diplomatic outreach, with Sheikh Khaled meeting Iranian President Masoud Pezeshkian on the sidelines of the BRICS summit in India amid broader Gulf discussions facilitated by Oman.