UAE Economy Minister: Hormuz Strait Vital, But Nation Boasts Multiple Trade Gateways

The United Arab Emirates possesses more than a single entry point for trade, emphasizing that its economic access extends beyond one port or road, according to Abdulla bin Touq, the Minister of Economy and Tourism. In an exclusive interview during the Rise Summit in Dubai, Mr. bin Touq stated, "[The Strait of] Hormuz really matters and it will keep on mattering." He stressed the importance of focusing on Hormuz as a key gateway. This perspective offers a direct contrast to remarks made by US Treasury Secretary Scott Bessent, who recently suggested the strait would become "a worthless piece of water" within two years. Historically, approximately one-fifth of the world's oil and gas passed through the Strait of Hormuz before the Iran war. However, traffic through this vital waterway has significantly decreased since the conflict began on February 28. Despite the continued importance of the strait, Mr. bin Touq highlighted that it is not the sole access route for the UAE. "The UAE doesn't have only one road. It has many roads to come to it," he affirmed. As part of its "Zero Hormuz" strategy, aimed at diversifying trade routes and supply chains, the UAE has unveiled plans to lessen its dependence on the strait. The nation has established regional logistics corridors connecting the Arabian Gulf to the Red Sea and the Gulf of Oman. Furthermore, development of east-coast ports, specifically Khor Fakkan and Fujairah, which lie outside the strait, has been expedited. The UAE is also constructing a new pipeline to enhance its capacity for exporting Abu Dhabi oil via the Gulf of Oman. Mr. bin Touq likened the east coast ports to a "side door" compared to Hormuz being the "front gate," noting that business is already actively utilizing these alternative routes. He also mentioned that the UAE continues to operate as a unified, connected economy. Mr. bin Touq pointed to company registrations on the east coast as an indicator of future economic growth, stating, "Redundancy means dollar signs. It means investments." He cautioned, however, that resilience does not equate to withdrawal, and the UAE is not enhancing its economic security by "closing and shrinking it." While acknowledging the strategic importance of the east coast, Mr. bin Touq resisted the notion of a drastic shift away from western routes, reiterating that the UAE functions as a single, interconnected economy. With the Etihad Rail network now connecting Abu Dhabi to Fujairah in under four hours, he described the possibility of having "breakfast in Khor Fakkan, lunch in Sharjah or Dubai and dinner in Abu Dhabi," illustrating how the rail line unifies "these seven economies that [are] very knitted together." Regarding the impact of crises like the Iran war on tourism, Mr. bin Touq noted that it is typically the first sector affected and the last to recover globally, with its resurgence dependent on airline capacity. The UAE is actively collaborating with other nations to be removed from their travel advisory lists, as tourism figures indicate a recovery following months of disruption due to the conflict. The commitment from Lufthansa and Air France to resume flights to the UAE by the end of the current month, according to Mr. bin Touq, "shows you there is confidence." This makes November and December a crucial period for tourism in the final quarter of the year. Early indicators are positive, with hotel occupancy reaching approximately 68 percent by the end of August. While September's figures are pending, the minister described the trend as "really, really nice." On the economic outlook, the International Monetary Fund projects a 3.9 percent contraction for the UAE economy this year, followed by a rebound of 7.7 percent in 2027. Mr. bin Touq clarified that the projected shrinkage is specifically 3.9 percent, with decimal points, not a full 4 percent. The UAE's real gross domestic product saw an annual growth of 0.4 percent to Dh961.9 billion ($262 billion) in the first half of 2026, primarily driven by non-oil business activities, despite the ongoing impact of the Iran war. The minister metaphorically described his economic strategy using a football formation: tourism as the attackers, businesses as the midfielders, and intellectual property and innovation capacity as the defense. He noted, "What happened is I lost my attacker and my midfielders are scoring goals." For 2027, tourism is expected to lead the charge again, while the midfield requires reform and improved access to capital. Reform, in this context, refers to legislative changes and addressing issues "that we tolerated through the crisis." Access to capital is being addressed through initiatives like the Dh1 billion Emirates Growth Fund, on whose board he serves, which aims to scale companies with revenues from Dh1 million to Dh10 million up to Dh50 million to Dh60 million. "We're already investing," he confirmed. The government is also seeking to increase venture capital in the region and integrate artificial intelligence into the operational systems of companies and factories. When asked about the interviewer's role in his economic strategy, the minister humorously suggested a trial, saying, "Play a winger."