Fujairah has once again come into focus after Iran targeted the Fujairah Oil Industry Zone (FOIZ) on Monday, 4 May, sparking a fire at a key oil facility and injuring three Indian nationals.
The attack reportedly hit storage facilities linked to Vitol, a major player in global fuel supply. The strike has raised concerns across shipping markets, with war risk insurance premiums for some vessels rising to as much as 5% of a ship's value, or roughly $7.5 million per voyage.
The incident has highlighted Fujairah's strategic importance as a critical oil-export and logistics hub outside the Strait of Hormuz. Why is Fujairah's location so important? Fujairah sits on the UAE 's eastern coast along the Gulf of Oman, giving it direct access to the Arabian Sea and the Indian Ocean. Crucially, it lies around 70 nautical miles outside the Strait of Hormuz, the narrow chokepoint through which roughly 20 million barrels of oil pass each day, accounting for about a fifth of global seaborne oil trade.
Its location allows the UAE to bypass the strait entirely, maintaining exports even during periods of heightened tension or disruption. With shipping through Hormuz severely restricted during the current conflict, Fujairah has become an increasingly vital outlet for energy flows. Why does Fujairah matter to global oil markets? Fujairah is not only strategically located but also a major player in global energy supply. The port exported more than 1.7 million barrels per day of crude oil and refined fuels on average last year, equivalent to around 1.7% of global daily demand.
It is also one of the world's largest bunkering hubs, selling about 7.4 million cubic metres of marine fuel in 2025, ranking behind only Singapore, Rotterdam and Zhoushan in China.
The port hosts major international storage and trading companies, including VTTI, Vitol, ADNOC and Vopak, and serves as a key centre for blending petroleum products used in global markets. How has the UAE built resilience around Fujairah? The UAE has reinforced Fujairah's role through major infrastructure investments, most notably the Abu Dhabi Crude Oil Pipeline (ADCOP), which began operations in 2012.
Stretching roughly 400 kilometres, the pipeline links Abu Dhabi's oil fields directly to Fujairah, with a capacity of up to 1.5 million barrels per day, expandable to 1.8 million barrels per day.
During the current crisis, exports through Fujairah have surged, with volumes at times reaching 1.6-1.9 million barrels per day.
The port also has a storage capacity of around 18 million cubic metres, making it one of the world’s largest hubs for crude oil and refined fuel storage.
With the Strait of Hormuz largely closed, Fujairah has become essential for the UAE, OPEC's third-largest producer. Any major disruption at the port could force the country to reduce production due to limited export routes. What additional protections are in place? In 2019, the UAE launched a major project to build underground oil storage caverns in Fujairah, designed to hold up to 42 million barrels of crude. Known as the "Al Mandous" project, the facility consists of three large rock caverns carved into the mountains.
Built by South Korea's SK Group at a cost exceeding $1.2 billion, the site is designed to withstand attacks, including drone and cruise missile strikes, offering greater protection than conventional storage tanks.
While the first phase has been completed, reports suggest a planned expansion has been paused since mid-2025 as the UAE prioritises strengthening air defence systems around key energy infrastructure. Why is Fujairah also a key logistics hub? Fujairah's role extends beyond oil. Its position along major shipping routes linking Asia, Africa and Europe has turned it into an important centre for re-export and maritime services, particularly when tensions disrupt other Gulf ports.
The port's significance has also grown for energy-importing countries such as India, which relies on imports for more than 85% of its crude needs.
With supplies from Iraq, Kuwait and Qatar disrupted during the crisis, Indian refiners have increasingly turned to oil from the UAE and Saudi Arabia shipped via Fujairah and Yanbu.
In April, UAE oil exports to India rose to around 619,000 barrels per day, marking a 43% increase from previous averages.