The United Arab Emirates (UAE) is planning to build a new port and container terminal on its east coast to reduce its dependence on the Strait of Hormuz. This move comes in response to Iran’s blockade of the strait, which has been in place since February 2026 and is severely disrupting maritime traffic in the region. Dubai-based port operator DP World is in talks regarding the construction of a multipurpose port in Fujairah, as well as an additional terminal at the emirate’s existing port. A high-ranking company representative stated that the new port could be completed in as little as one and a half years. Initial investments amount to several hundred million U.S. dollars; additional funding could follow as needed. The location on the Gulf of Oman makes it possible to unload containers without passing through the Strait of Hormuz and then transport them by truck to Dubai, Abu Dhabi, and neighboring Gulf states. This is intended to secure global logistics chains, which have been severely disrupted by the current crisis.

Global Economic Impact: Raw Materials and Intermediate Goods Affected

The blockade affects not only oil and gas shipments, but also critical raw materials and intermediate products that are essential to European and German industry:

  • Aluminum: The GCC countries (including the UAE and Saudi Arabia) produce 9% of the world’s primary aluminum—a figure comparable to total European production. The blockade reduced production in April 2026 by 35% compared to the previous year, leading to price increases of 50% (World Bank, 2026).
  • Fertilizers: About 40% of global urea exports and 30% of diammonium phosphate (DAP) exports originate in the Gulf region. Delayed shipments threaten global food security, particularly in Asia and Africa (FAO, 2026).
  • Sulfur: The region accounts for 25% of global production and 50% of exports. Sulfur is essential for the production of phosphate fertilizer and metals such as nickel (used in car batteries).
  • Helium: Qatar supplies 40% of the world’s helium, which is primarily used for semiconductor production in Europe and Asia.
  • Chemical feedstocks: 45% of global trade in polyethylene (PE) and polypropylene (PP) originates from the Gulf region. Germany and Europe are 30% dependent on imports from this region (DERA, 2026).

Prices for these raw materials have risen sharply:

  • Aluminum: +50%
  • Urea: +97%
  • DAP: +15%
  • Crude Oil (Brent): +67%
  • Natural gas in Europe: +39% (World Bank, 2026).

Impact on Germany and the EU

Although Germany is not directly dependent on the blockade, the indirect consequences are severe:

  • Energy Prices: The blockade has caused global energy prices to rise sharply, making it more difficult to replenish gas storage facilities and jeopardizing the security of supply.
  • Industrial Bottlenecks: In May 2026, 15.9% of German companies (vs. 13.8% in April) reported shortages of intermediate goods—the chemical industry, rubber and plastics manufacturers, and the electrical industry were particularly affected (ifo, 2026).
  • Long-term risks: KfW warns that prolonged supply disruptions could lead to shortages of food and metals, which would have a lasting negative impact on global production.

 

European Responses: Diversification and Contingency Plans

The EU is responding with a two-pronged strategy:

  1. Diversification of supply routes:EU Flags
    • Reactivation of old pipelines: e.g., the Trans-Arabian Pipeline (Saudi Arabia → Lebanon) or the expansion of the East-West Pipeline (Saudi Arabia → Red Sea).
    • Alternative maritime routes: The EU is supporting the expansion of ports on the east coast of the UAE (e.g., Fujairah) to reduce dependence on the Strait of Hormuz.
    • EU Commission President Ursula von der Leyen emphasizes: “We must diversify our supply routes and develop alternative export corridors to free ourselves from the Hormuz bottleneck.”
  2. Investments in renewable energy:
    • In the long term, the goal is to reduce dependence on fossil fuels from the Gulf region in order to avoid such crises in the future.
  3. Emergency Measures for Industry:
    • The EU is considering subsidies for affected industries (e.g., chemicals, semiconductors) to mitigate production losses.
    • Strategic reserves for critical raw materials such as helium and sulfur are being discussed.

Conclusion: The Crisis as a Wake-up Call for Europe

The blockade of the Strait of Hormuz highlights how vulnerable global supply chains are to geopolitical crises. While the UAE is responding with new port projects, Germany and the EU are feeling the consequences in the form of rising energy prices, raw material shortages, and industrial bottlenecks. The crisis underscores the need to diversify supply routes, build up strategic reserves, and reduce dependence on critical raw materials in the long term.