An increasingly volatile geopolitical environment in the Middle East, particularly the recent tensions over strategic maritime routes, has underscored the growing importance of the ports and logistics sector as a key pillar of economic and geopolitical power. As freedom of navigation in the Red Sea and the Strait of Hormuz has come under increasing threat and disruptions have rippled through global supply chains, countries with advanced maritime infrastructure and integrated logistics networks have been in a better position to weather these shocks, allowing them to ensure the uninterrupted flow of trade and boost their economic competitiveness.

Against this backdrop, the United Arab Emirates (UAE) has emerged as a regional model for how to leverage the ports sector as part of a comprehensive strategic vision. Going beyond just the development of maritime infrastructure, this strategy aims to diversify sources of national income, strengthen the country's position as a global hub for trade and logistics, and expand its economic influence through investments in overseas ports, in line with the rapid transformations reshaping global trade.

Strategic Initiatives

The ports sector forms a central pillar of the United Arab Emirates' strategy to consolidate its position as a global hub for trade and logistics. The country's principal strategic initiatives to strengthen and develop this sector include the following:

1. Adopting a Strategy to Position UAE Ports as Global Trade Hubs: The UAE has adopted a long-term strategy to transform its ports into pivotal hubs within global trade flows, leveraging its strategic geographic location at the crossroads of Asian, European, and African markets. As part of this strategy, the government has prioritized developing port infrastructure within its national economic diversification initiatives, including UAE Vision 2021 and Abu Dhabi Vision 2030. This commitment has translated into substantial investment to expand berths, increase port capacity, and modernize container-handling equipment, thereby improving operational efficiency and accommodating the continued growth of international trade.

This strategy aims to enhance the competitiveness of the UAE's ports by providing world-class infrastructure that meets international standards, reinforcing the country's position among the world's leading maritime transport hubs. Jebel Ali Port exemplifies this approach. As one of the world's largest container ports, it has been equipped with state-of-the-art ship-to-shore cranes and advanced cargo-handling equipment capable of servicing ultra-large container vessels. This has strengthened its ability to attract major international shipping lines and increase transshipment volumes. The continued modernization of the port has also enhanced the efficiency of global supply chains and improved connectivity between regional and international markets through an integrated logistics network, supporting the UAE's ambition to become a global center for trade and maritime services.

2. Developing an Advanced Commercial Port Network: The UAE has developed one of the world's most advanced and efficient commercial port networks, benefiting from its strategic location along major international trade routes. The country operates 12 commercial ports and 310 berths with a combined cargo-handling capacity of approximately 80 million tons, making it one of the region's leading maritime transport and logistics hubs.

The UAE's major ports include Jebel Ali Port, the largest port in the Middle East and one of the world's ten busiest container ports, and Khalifa Port, the first semi-automated port in the Middle East and North Africa. Other key facilities—including Khorfakkan Port, Fujairah Port, Port Rashid, and Zayed Port—perform specialized functions ranging from container handling and transshipment to marine bunkering and cruise tourism.

This integrated port network has reinforced the UAE's position as a global maritime trade hub. Approximately 61% of all cargo shipments handled within the Gulf Cooperation Council (GCC) pass through UAE ports, which are connected to more than 70 international destinations, facilitating global trade flows and supply chain connectivity. The diversity of the country's ports and maritime services has further bolstered its ability to attract investment, expand international trade, and advance its vision of becoming a global center for trade and logistics.

3. Boosting the Competitiveness of Abu Dhabi Ports Through Trade Corridor and Logistics Development: AD Ports Group has continued to improve the performance of its ports and logistics businesses. In 2025, the Group recorded AED 20.8 billion in revenue, representing a 20% year-on-year increase, while net profit rose 17% to AED 2.1 billion. This strong performance was driven by higher container throughput, the expansion of maritime and logistics services, and increased industrial land leasing within Khalifa Economic Zones Abu Dhabi (KEZAD). Container volumes across the Group's ports business also increased by 23%, reaching 7.7 million TEUs, reflecting the success of its strategy to enhance port efficiency and accommodate growing trade volumes.

As part of its logistics connectivity initiatives during 2026, the Group further consolidated Khalifa Port's role as its primary trade gateway. The port currently has an annual handling capacity of 9.6 million TEUs, out of the Group's total global capacity of 12.1 million TEUs, while processing approximately 86% of the Group's domestic container traffic. AD Ports Group also launched a land bridge linking Fujairah Port and Khorfakkan Port with Khalifa Port, Jebel Ali Port, and Sharjah through integrated customs corridors, utilizing 800 trucks alongside four daily Etihad Rail services.

The Group has also announced plans to expand its warehousing and strategic commodity storage facilities to more than 76,000 square meters, with long-term plans to increase capacity to over 188,000 square meters, further strengthening supply chain resilience and preparing the country's ports for future growth.

4. Enhancing UAE Ports Through International Partnerships: The UAE continues to upgrade the capabilities of its ports through international partnerships. In this context, AD Ports Group and the global shipping and logistics company CMA CGM agreed to accelerate the implementation of the second phase of the Khalifa Port Container Terminal expansion less than one year after the inauguration of the first phase, in response to rapidly growing demand.

The expansion project, valued at approximately AED 420 million, aims to increase the terminal's annual handling capacity by 50%, from 1.8 million TEUs to 2.7 million TEUs, raising Khalifa Port's overall capacity to 10.5 million TEUs annually and reinforcing its position as a leading regional maritime and trade hub.

The expansion also includes increasing the quay length by 50%, from 800 meters to 1,200 meters, expanding the terminal yard by more than 40%—from 46 hectares to 67 hectares—and upgrading operational facilities and refrigerated container storage systems. These improvements will enhance logistics efficiency and accommodate the continued growth in global trade. The project reflects the UAE's broader commitment to investing in advanced maritime infrastructure that supports international commerce and strengthens the country's maritime and logistics connectivity.

5. Pursuing an Expansion Strategy Through Overseas Port Investments: In recent years, the UAE has pursued an expansionary strategy centered on investing in overseas ports to consolidate its role in global trade networks and secure critical maritime transport routes. This strategy has involved acquiring rights to develop and operate ports and logistics zones in strategically important countries, including Eritrea, Somalia, and Djibouti.

The UAE has relied primarily on its national champions—particularly AD Ports Group and DP World—to develop port infrastructure, manage maritime terminals, and establish associated industrial and logistics zones. This approach has enabled the country to expand its global trade network and deepen connectivity with regional and international markets.

6. Expanding UAE-China Partnerships in the Ports and Logistics Sector: In July 2024, DP World announced a new partnership with Xinjiang Port Group to establish a comprehensive strategic cooperation framework aimed at enhancing port logistics and maritime shipping services between Jebel Ali Port and Ningbo-Zhoushan Port in China.

The partnership focuses on attracting additional shipping companies to establish new maritime routes between the two ports while promoting cooperation among shipping lines through the sharing of freight platforms and vessel cargo capacity along the Dubai-Ningbo shipping corridor, thereby improving connectivity and operational efficiency between the two leading maritime hubs.

In the same vein, AD Ports Group signed a strategic partnership agreement in October 2025 with the state-owned Shandong Port Group, which operates Yantai Port and several other major ports across China's Shandong Province. The agreement aims to establish environmentally friendly automotive business clusters to promote vehicle trade between Asia, the Middle East, and North Africa, while leveraging sustainable energy sources.

7. SAFEEN Drydocks Secures Two Major Shipbuilding Contracts: In June 2026, SAFEEN Drydocks, a subsidiary of AD Ports Group, secured two shipbuilding contracts with a combined value of AED 1.3 billion.

The first contract covers the construction of four multi-purpose commercial vessels, each measuring 140 meters in length, for AD Ports Group. The second involves building 18 specialized marine units, including tugboats and pilot boats, for Oilbank Logistics Services Ltd. of Nigeria, supporting port operations and maritime logistics services.

These contracts hold considerable strategic significance for the UAE, as they represent the largest shipbuilding projects undertaken by SAFEEN Drydocks to date. Not only do they reflect the country's growing capabilities in shipbuilding and marine engineering, but they also serve to strengthen domestic industrial capacity, support economic growth, and reinforce the UAE's position as a regional hub for shipbuilding and maritime services.

In this context, it is worth highlighting that SAFEEN Drydocks operates an integrated network of industrial facilities across the UAE and Spain. Leveraging its advanced facilities in both countries—including its shipyard at Khalifa Port—the company employs modular construction techniques and precision manufacturing technologies to deliver complex maritime projects. Its comprehensive range of maritime services include shipping, transshipment, offshore oil and gas field support, and subsea operations.

Key Drivers

Several key drivers underpin the UAE's commitment to developing its ports sector and making it more competitive. The most significant of these are as follows:

1. Aligning the UAE's National Strategy with the Objectives of the International Maritime Organization (IMO): The UAE is committed to aligning its national strategy with the objectives of the International Maritime Organization (IMO). In this regard, the country has declared its full support for global efforts to decarbonize maritime transport and has contributed funding to a dedicated trust fund that enables Small Island Developing States (SIDS) and developing countries to participate in IMO meetings, thereby promoting greater inclusiveness and equitable representation. The UAE also plays an active role in the organization's regular meetings and has introduced a number of initiatives to advance international maritime regulations and standards.

The UAE is also recognized as one of the leading developers of digital and smart maritime systems. It has launched several pioneering initiatives, including Blue Pass, Maqta Gateway, BoxBay, and CargoSpeed, alongside automated container-handling systems deployed at the ports of Abu Dhabi and Dubai. Collectively, these innovations help reduce carbon emissions, improve supply chain efficiency, and establish a fully integrated model of automation and digitalization across maritime logistics services.

2. Reducing Dependence on the Strait of Hormuz and Strengthening National Supply Chain Security: The UAE is implementing a comprehensive plan to expand and modernize its ports along the country's eastern coast—particularly Dibba, Fujairah, and Khorfakkan—with the objective of reducing dependence on the Strait of Hormuz and enhancing the resilience of national supply chains amid ongoing regional geopolitical challenges. In addition to upgrading port infrastructure, the initiative involves the construction of new pipeline networks, rail links, and road corridors to connect these ports to the country's oil and gas fields and petroleum facilities, thereby improving the efficiency of energy and cargo transportation while enhancing the resilience of the national logistics network.

The UAE also aims to transform the ports on its eastern coast into integrated logistics hubs capable of accommodating future trade growth. In this context, Gulftainer, a leading global provider of supply chain, logistics, and port management solutions, has launched a regional logistics corridor connecting Khorfakkan Port with the Etihad Rail network, increasing the port's annual handling capacity to approximately 1.5 million TEUs. This initiative reflects the UAE's broader strategy of diversifying its maritime gateways, ensuring uninterrupted trade and energy flows, and enhancing the readiness of its ports to withstand any disruptions affecting navigation through the Strait of Hormuz.

3. Diversifying the Economy and Reducing Dependence on Oil Revenues: The ports and logistics sector constitutes one of the principal pillars of the UAE's economic diversification strategy and its efforts to reduce reliance on hydrocarbon revenues. Central to this strategy is the country’s success in transforming its strategic geographic location into a competitive advantage that supports the growth of non-oil sectors, particularly trade, transportation, manufacturing, warehousing, and logistics.

An example of this transformation can be seen in the continued expansion of the freight and logistics market. The sector is projected to grow from US$23.05 billion in 2026 to approximately US$31.63 billion by 2031, representing a compound annual growth rate (CAGR) of 6.55%. This growth is being driven by continued port expansion, the development of free zones, multimodal transportation networks, and investment-friendly policies that attract foreign capital. Meanwhile, the UAE's non-oil foreign trade reached approximately US$1.42 trillion in 2024, representing a 49% increase compared to 2021, underscoring the pivotal role that ports play in expanding non-oil economic activity and reinforcing the country's position as a global trade and re-export hub.

Within this framework, the UAE continues to leverage the ports sector as a driver of sustainable economic growth through investments in logistics infrastructure, enhanced connectivity between ports and national rail and road networks, the expansion of free zones, and the promotion of full foreign ownership. These initiatives have helped make the country more attractive to international companies while supporting the growth of industries linked to maritime transport and supply chains. They have also contributed to the expansion of manufacturing, e-commerce, warehousing, and logistics services, thereby increasing the contribution of non-oil sectors to GDP and enhancing the resilience of the UAE economy against fluctuations in global energy markets.

4. Consolidating the UAE's Position as a Global Trade and Logistics Hub: The UAE has successfully developed an integrated logistics ecosystem that combines seaports, airports, free zones, and industrial cities, creating a highly advanced environment for manufacturing, re-export, and regional distribution activities. This integrated platform has attracted many of the world's leading companies operating in trade, transportation, and logistics.

As a result, the UAE's non-oil foreign trade exceeded AED 3.8 trillion (approximately US$1.03 trillion) in 2025, reinforcing the country's role as a major gateway for re-exporting goods to markets across the Middle East, Africa, and Asia.

The UAE has supported this strategy by continuously upgrading its maritime and digital infrastructure, expanding its network of Comprehensive Economic Partnership Agreements (CEPAs), and adopting smart customs systems together with artificial intelligence and blockchain technologies to accelerate trade flows and reduce customs clearance times.

These efforts have further boosted the competitiveness of the country's ports. As a case in point, in 2025 Jebel Ali Port handled 15.6 million TEUs, compared with 15.53 million TEUs in 2024. Meanwhile, DP World handled approximately 93.36 million TEUs across its global portfolio during 2025, a 5.8% increase over the 88.28 million TEUs handled in 2024.

An Integrated Vision

Overall, the UAE's strategy for developing its ports reflects a comprehensive vision for consolidating the country's position as a global hub for trade and logistics. Through sustained investment in port infrastructure, stronger connectivity between ports and multimodal transport networks, and the expansion of overseas investments, it enhances the competitiveness of the national economy while strengthening its integration into global supply chains.

Against the backdrop of today's evolving geopolitical landscape, this strategy serves as a cornerstone of the UAE's efforts to bolster economic resilience, diversify sources of national income, and secure critical trade routes, thereby reinforcing the country's position as one of the world's leading maritime and logistics hubs.

The UAE’s Port Development Strategy