Zero Hormuz strategy & the Sheikh supporting it

Picture Credit: Trade Winds

Abu Dhabi is accelerating a multibillion-dollar infrastructure push to reduce its dependence on the Strait of Hormuz, as the Iran conflict exposes the vulnerability of one of the world’s most important energy and shipping routes. At the centre of the strategy is Crown Prince Sheikh Khaled bin Mohamed Al Nahyan, who recently took charge of L’imad Holding, a sovereign wealth fund with around $300 billion in assets. The initiative, known as “Zero Hormuz,” aims to keep the UAE’s exports moving even if the strategic waterway remains disrupted.

A major part of the plan involves expanding ports and transport infrastructure outside the strait, particularly around Fujairah, which sits on the Gulf of Oman and provides direct access to the open sea. L’imad is reportedly preparing to invest tens of billions of dollars in port infrastructure, while Abu Dhabi Ports is pursuing a proposed transaction valuing it at nearly $9 billion. Separately, state oil company ADNOC is building a second pipeline to increase the volume of crude that can be exported through Fujairah, with Sheikh Khaled pushing to accelerate the project.

The strategy is also attracting major international financial partners. In May, L’imad, BlackRock, Singapore’s Temasek Holdings and ADNOC agreed to target up to $30 billion in infrastructure investments focused on energy transportation, logistics and water. Bringing in external capital and expertise could help Abu Dhabi finance large projects while creating opportunities for global asset managers to invest in long-term infrastructure with recurring revenue. The broader ambition is to strengthen the UAE’s ability to export oil, petrochemicals and other commodities without relying so heavily on Hormuz.

However, bypassing the strait will be expensive and technically difficult. Pipelines can redirect crude oil, but other exports, including liquefied natural gas and aluminum, are harder to reroute. Fujairah itself has also faced attacks during the conflict, highlighting that infrastructure outside Hormuz is not necessarily beyond the reach of Iranian missiles and drones. The UAE must also coordinate competing port expansion plans involving Abu Dhabi Ports and Dubai-based DP World in a relatively limited coastal area.

The “Zero Hormuz” strategy therefore represents more than an infrastructure programme: it is an attempt to reshape the UAE’s economic and strategic exposure to regional instability. Its success will depend on whether Abu Dhabi can build reliable alternative routes, attract investment and protect assets in an increasingly contested region. Even with billions of dollars and major international partners behind it, the initiative cannot eliminate geopolitical risk. It can, however, give the UAE more options when the Strait of Hormuz becomes a point of disruption.