The 50-year concession aims to bolster UAE supply chain resilience and expand annual container handling capacity to nearly 22 million TEUs.
DUBAI — DP World and the Fujairah Ports Authority have signed an agreement in principle to construct two new maritime terminals under a 50-year concession. The strategic project aims to protect critical supply chains and diversify the United Arab Emirates’ trade gateways beyond the Strait of Hormuz.
The agreement covers the development of the Al Rugaylat container and multi-purpose terminal alongside the Dibba General Cargo terminal. Located on the UAE’s eastern coast facing the Gulf of Oman, Fujairah offers direct access to the Indian Ocean. This position allows ocean vessels to bypass the narrow waterway separating the Arabian Gulf from open seas.
International ratings agency Moody’s Ratings noted that the infrastructure expansion will provide free zone tenants and importers with a reliable alternative route. The setup mitigates risks associated with potential maritime disruptions inside the Arabian Gulf while reinforcing the national economy’s logistical resilience.
Expanding Capacity and Supply Chain Networks
The project will expand DP World’s annual container-handling capacity in the UAE by approximately 13 percent, raising total capacity from 19.4 million twenty-foot equivalent units (TEUs) to nearly 22 million TEUs.
The developments are structured to operate synergistically with Jebel Ali Port, the region’s principal trade hub:
- Al Rugaylat Terminal: Designed with deep-water capability to handle Ultra Large Container Vessels, featuring an annual capacity of up to 2.5 million TEUs, 1.7 million tonnes of general cargo, and 190,000 car equivalent units.
- Dibba General Cargo Terminal: Engineered to handle up to 3.6 million tonnes of non-containerized general cargo annually.
Through DP World’s inland logistics infrastructure, goods landing in Fujairah will move overland to commercial districts, distribution hubs, and consumers across the country.
Official Reactions and Economic Impact
Sheikh Saleh Bin Mohamed Al Sharqi, Chairman of the Fujairah Ports Authority, stated that the partnership will introduce operating capabilities and draw fresh investment to the emirate.
“The Al Rugaylat and Dibba terminals will bring world-class operating capability, expanded capacity and new investment to the emirate. We look forward to working with DP World to deliver a project that will benefit customers, communities and the UAE’s wider economy.”
— Sheikh Saleh Bin Mohamed Al Sharqi, Chairman, Fujairah Ports Authority
Yuvraj Narayan, Group Chief Executive Officer of DP World, emphasized that the initiative addresses operational demands as existing facilities near peak capacity.
“Fujairah strengthens what Jebel Ali already delivers — a single, global integrated platform for moving goods across global supply chains and within the UAE and beyond. With Jebel Ali operating at high utilisation, this development provides the additional capacity to support long-term growth. For cargo owners, it means greater flexibility, more choice and stronger supply chain resilience.”
— Yuvraj Narayan, Group CEO, DP World
Financing and Implementation Timeline
Moody’s Ratings described the 50-year concession agreement as credit positive for DP World (rated Baa2 with a stable outlook). Construction is scheduled to execute in phases, with completion projected within 24 to 36 months from commencement.
| Metric / Parameter | Value / Detail |
| Concession Duration | 50 Years |
| Target Construction Period | 24 to 36 Months |
| DP World 2026 Capex Target | $3.0 Billion (Unchanged) |
| Unrestricted Cash (End of 2025) | $4.6 Billion |
| Available Credit Lines | $1.6 Billion |
The ratings agency noted that DP World maintains sufficient liquidity to fund construction without altering its planned $3 billion capital expenditure target for 2026.
