United Arab Emirates launches ‘Zero Hormuz’ energy export strategy

The United Arab Emirates is implementing a multi-billion dollar infrastructure strategy known as ‘Zero Hormuz’ to bypass the Strait of Hormuz. This initiative aims to protect the nation’s energy exports, including petroleum, petrochemicals, and aluminum, from regional maritime security risks and conflict in the Persian Gulf.

Under the direction of Sheikh Khaled bin Mohamed Al Nahyan, the sovereign wealth fund L’imad Holding—which manages approximately $300 billion in assets—is driving this redirection of trade routes. Key moves include a planned $9 billion transaction to take Abu Dhabi Ports Co. private and investments in port facilities along the exterior of the Arabian Gulf. L’imad has secured agreements with partners such as BlackRock, Temasek Holdings, and Abu Dhabi National Oil Co. (Adnoc) to invest up to $30 billion in logistics and energy transport infrastructure across the Gulf and Central Asia.

To achieve greater autonomy, the UAE is expanding facilities at the Port of Fujairah, which sits outside the Persian Gulf, and upgrading the Habshan pipeline to the Gulf of Oman. Other regional players, such as Kuwait, are also exploring solutions to mitigate vulnerability, including the potential construction of new pipelines and increasing shipping fleet capacity.