Please see below the daily update article from EPIC Investment Partners, received this afternoon – 17/06/2026
In the complex theatre of global energy markets, the UAE is accelerating one of the most significant structural shifts in modern sovereign logistics: the deliberate reduction of its dependence on the Strait of Hormuz. Following renewed volatility in the Gulf and recurring disruption risks to one of the world’s strategically important maritime chokepoints, through which roughly one-fifth of global oil and LNG flows, the UAE is advancing a comprehensive “zero Hormuz dependency” strategy.
As UAE Minister of Foreign Trade Thani Al Zeyoudi has stated, the objective is explicit: to eliminate reliance on the Strait regardless of geopolitical conditions. This marks a clear strategic pivot from managing vulnerability to engineering structural independence.
At the heart of this transformation is a rapid expansion of eastern Gulf of Oman infrastructure, including the ports of Fujairah, Khor Fakkan, and Dibba, alongside plans for additional deepwater capacity. Positioned outside the Strait, these assets provide direct access to global shipping lanes and materially reduce exposure to maritime disruption risk.
This port expansion is being reinforced by a parallel build-out of midstream infrastructure. The UAE is scaling up pipeline capacity linking Abu Dhabi’s oil fields to its eastern coastline, including a second Habshan–Fujairah pipeline designed to significantly enhance crude export flexibility, with further expansion options under active consideration. Complementary investment in rail and road networks is also strengthening inland connectivity between production hubs and eastern export terminals.
The strategy extends beyond crude oil to LNG, petrochemicals, and refined products, although rerouting these flows at scale remains more complex. Existing LNG infrastructure within the Gulf continues to play a critical role, even as additional capacity is being developed to diversify export pathways.
The urgency of this programme has been underscored by recent geopolitical shocks, which have exposed the fragility of regional trade routes and highlighted the economic cost of disruption. While the UAE has partially mitigated constraints through increased utilisation of Fujairah and Khor Fakkan, alongside alternative logistics routes such as air freight and third-country transshipment hubs, these measures remain transitional responses to a structural challenge.
Ultimately, the UAE’s approach reflects a broader investment-grade principle: in an environment of persistent geopolitical uncertainty, supply chain resilience is sovereign policy. By embedding export redundancy into its energy architecture, the UAE is protecting its primary revenue base, reducing volatility in its credit profile, and strengthening long-term fiscal predictability.
This operational resilience is a key pillar underpinning Abu Dhabi’s strong sovereign credit standing. Supported by major sovereign investment platforms, including Mubadala and broader sovereign wealth structures, the emirate benefits from a fortress-like balance sheet and substantial net external asset position. Combined with disciplined fiscal management, this provides significant capacity to absorb external shocks.
As a result, Abu Dhabi has consistently maintained a high-grade sovereign AA rating since 2017. UAE sovereign and quasi-sovereign instruments continue to offer investors a compelling combination of yield, liquidity, and credit quality.
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Charlotte Clarke
17/06/2026