No longer willing to be held hostage by the Strait of Hormuz! Abu Dhabi joins forces with global capital to invest tens of billions of dollars in building a 'new oil export hub'

Abu Dhabi is reshaping the Middle East’s energy export landscape with unprecedented speed and scale. Led by Sheikh Khaled bin Mohamed Al Nahyan, Crown Prince of Abu Dhabi, the sovereign fund L’imad Holding is spearheading an official strategy dubbed “Zero Hormuz,” whose core objective is to transform Fujairah Port—located on the Gulf of Oman and entirely bypassing the Strait of Hormuz—into a new oil export hub. L’imad plans to invest hundreds of billions of dollars in new port infrastructure outside the Strait and has already partnered with BlackRock’s Global Infrastructure Partners, Temasek, and Abu Dhabi National Oil Company (ADNOC) to jointly target up to $30 billion in infrastructure investment. Goldman Sachs’ commodities team has provided quantitative backing for this strategy: as regional pipeline capacity continues expanding, over 45% of the Gulf’s pre-war oil export volume will be able to bypass the Strait of Hormuz by end-2027; that share will exceed 60% by end-2028. This means Iran’s decades-long strategic leverage over Gulf energy exports—exerted via control of the Strait of Hormuz—is being systematically dismantled. In June, UAE Minister of Trade Thani Al Zeyoudi explicitly stated that the UAE aims for “zero reliance” on the Strait of Hormuz—regardless of whether it remains open or closed. This declaration marks a structural shift in the Gulf’s energy export paradigm: no longer a contingency plan, but a long-term strategic commitment. Hundreds of billions poured into Fujairah L’imad Holding is the central orchestrator of this strategy. With approximately $300 billion in assets under management, the fund was recently placed under Sheikh Khaled’s leadership just weeks before the outbreak of hostilities involving Iran—and he also serves as Chairman of ADNOC’s Executive Committee. Operationally, L’imad has announced plans to privatize Abu Dhabi Ports Company at a valuation nearing $9 billion. According to insiders, the fund intends to follow up with hundreds of billions more in investments in new port infrastructure outside the Strait—with Fujairah squarely at the center. In May, L’imad signed an agreement with BlackRock’s Global Infrastructure Partners, Temasek, and ADNOC to jointly commit up to $30 billion toward energy transportation, logistics, and water infrastructure. By inviting external capital rather than relying solely on state funding, Abu Dhabi has effectively granted BlackRock access to a “toll road” circumventing Iran. Meanwhile, ADNOC is constructing a second pipeline to Fujairah to double export capacity through the port. Sheikh Khaled explicitly instructed accelerated progress during a meeting in May. DP World (Dubai Ports World) is independently advancing a new container terminal project in Fujairah. As a result, this relatively narrow stretch of coastline at the foot of the Hajar Mountains is poised to become the most congested—and strategically valuable—real estate in the Gulf region. Goldman Sachs estimate: 60% of exports bypassable by end-2028

To bypass the Strait of Hormuz, the UAE plans to build a third oil pipeline

The UAE is seeking to further reduce its dependence on the Strait of Hormuz. According to a Bloomberg report released Thursday, Abu Dhabi National Oil Company (ADNOC) is exploring the development of a third crude oil export pipeline that would circumvent this strategic waterway—a move that would significantly curtail Iran’s influence over Persian Gulf energy corridors. ADNOC is evaluating a new pipeline linking the UAE’s west coast with Fujairah on the east coast. Once completed, the pipeline would enable direct crude oil deliveries to Asian customers without transiting the Strait of Hormuz. According to informed sources, ADNOC has already engaged certain Asian customers regarding this pipeline initiative, though the plan remains unconfirmed, and numerous details—including the route—are still subject to change. An ADNOC spokesperson subsequently responded: “This report is inaccurate and purely speculative.” Nevertheless, should this project advance, it would further erode Iran’s ability to pressure Gulf energy exports using the Strait of Hormuz as leverage—carrying profound implications for global crude supply dynamics and energy geopolitics. Existing pipelines lay the groundwork; new projects drive continued expansion The UAE’s pipeline infrastructure designed to bypass the Strait of Hormuz has deep roots. The existing Habshan–Fujairah pipeline entered service in 2012. Spanning 252 miles, it connects Habshan in Abu Dhabi with Fujairah on the Gulf of Oman, with an initial daily throughput capacity of 1.5 million barrels—expandable to 1.8 million barrels.

ADNOC's second pipeline to be completed by around January, Inpex executive says

15 hours ago

ADNOC expects to complete a second crude oil pipeline by January, doubling capacity to 3.6 million barrels per day. Inpex executives indicated potential support for future expansions contingent on secure shipments.

reuters

2026-11-12

ADNOC's second pipeline to be completed by around January, Inpex executive says

ADNOC's second pipeline to be completed by around January, Inpex executive says

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