Jebel Ali, the largest port in the Middle East, is facing the threat of a serious crisis due to the blockade of the Strait of Hormuz. According to the Financial Times, cargo volumes handled by the port, which plays a crucial role in Dubai’s economy, have fallen by more than 90% since the conflict involving Iran began. On average, around 17 vessels a day are now passing through the Strait of Hormuz, compared with 135 before the U.S. war with Iran began.
Jebel Ali and the nearby free economic zone account for more than 20% of Dubai’s GDP. The UAE authorities are seeking alternative routes, while DP World plans to build two ports in Fujairah. However, experts doubt that these facilities will be able to replace Jebel Ali.
"Dubai as we know it would not exist without Jebel Ali," said Jim Crane, an expert at Rice University. The Strait of Hormuz is a narrow maritime passage between the Persian Gulf and the Gulf of Oman, holding significant strategic importance as approximately 20% of global oil supplies and around 25% of liquefied natural gas (LNG) exports pass through it. Essentially, it serves as an energy artery for countries in Asia, Europe, and even the United States.
The strait separates Iran from Oman, and in some areas, the width of the shipping channel is only two miles on each side. Given its critical role in global energy supply chains, ensuring the safety and security of this vital waterway is paramount for international trade and economic stability. Here we are to serve you with news right now.
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