Financial Times: The Iran war strikes the heart of the “Jebel Ali” port system and threatens Dubai’s economic model

The Financial Times revealed on Thursday that the war on Iran has caused a decline in handling activity at the Jebel Ali Port in Dubai by more than 90% during the first weeks, with limited recovery since then.

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The newspaper explained in its report that Jebel Ali’s importance isn’t limited to the port but extends to a free zone that includes about 12,000 companies, factories, warehouses, transport networks, and logistics services, making its replacement by another port extremely difficult.

The port and the free zone together constitute more than a fifth of Dubai’s GDP, while Jebel Ali provided about 30% of DP World’s revenues during the past year.

A former official at DP World said that repeated navigation disruptions in the Strait of Hormuz represent an “existential risk” to Dubai, whose economy depends on the continued movement of trade.

DP World is planning to build two terminals in Fujairah to reduce dependence on the Strait of Hormuz, but the project needs about two years, while Fujairah does not provide complete immunity from the repercussions of the conflict.