Jebel Ali Port Activity Plummets Amid Hormuz Tensions as Multinationals Reassess Dubai Presence

The iconic Jebel Ali Port, long a cornerstone of Dubai’s status as a global logistics powerhouse, has seen its daily container throughput collapse dramatically from around 40,000 to just 1,000 amid ongoing disruptions in the Strait of Hormuz, according to multiple industry reports.

The sharp decline stems from regional geopolitical tensions, particularly the US-Iran conflict, which led to significant restrictions on shipping through the critical waterway. Sources indicate activity at the port fell by 90-95% at peak disruption periods earlier this year, with transshipment volumes severely impacted as vessels rerouted or halted operations.

Jebel Ali, which handled approximately 15.5-15.6 million TEUs (twenty-foot equivalent units) in 2025, remains operational but faces ongoing challenges. Recent data shows low congestion levels with median vessel waiting times under a day, yet overall throughput continues to reflect the broader supply shock from reduced inbound cargo.

Compounding the port’s difficulties, several multinational firms and businesses have reportedly scaled back operations or relocated parts of their presence in Dubai. Reports highlight temporary evacuations or office closures by entities like Citi, Deloitte, and PwC due to security concerns, alongside broader expat and corporate reevaluations driven by uncertainty.

While Dubai continues to attract wealth and pursue diversification، including plans for new east coast facilities in Fujairah to bypass Hormuz entirely، the situation underscores vulnerabilities in the emirate’s trade-dependent model.

DP World and UAE authorities are actively shifting toward multimodal corridors, rail expansions, and alternative routes to mitigate risks, with some recovery in volumes noted through overland options. However, analysts warn that prolonged instability could lead to lasting shifts in regional logistics flows toward competitors in India and Sri Lanka.

The developments come as the UAE accelerates efforts for a more resilient “zero Hormuz” strategy, balancing immediate pressures with long-term ambitions to maintain its position as a global hub.