[**Gulf Nations Invest Billions to Build Alternative Routes to Reduce Reliance on the Strait of Hormuz**] BlockBeats News, August 31: As the Strait of Hormuz continues to face shipping disruptions due to the Iran conflict, Gulf nations such as Saudi Arabia and the UAE are accelerating investments in ports, pipelines, and railway projects to bypass this critical energy chokepoint. Before the conflict, the Strait of Hormuz handled approximately one-fifth of global oil flows, but current traffic remains significantly below normal levels. Saudi Arabia is exploring the expansion of its east-west crude oil pipeline connecting its eastern oil-producing region to the Red Sea port of Yanbu. The pipeline currently has a daily capacity of about 7 million barrels, and Saudi Arabia is considering adding 1 to 2 million barrels per day while also exploring the possibility of allowing neighboring countries to use this network to bypass the Strait of Hormuz. The UAE, on the other hand, is accelerating the development of Fujairah Port. In July, DP World agreed to a 50-year concession to develop two new terminals. The Al Rugaylat container and multipurpose terminal will have an annual handling capacity of up to 2.5 million TEUs, while the Dibba general cargo terminal will add a capacity of 3.6 million tons of cargo. Additionally, Abu Dhabi is advancing a new crude oil pipeline project, expected to be operational by 2027, which could double the UAE's crude export capacity through Fujairah, bypassing the Strait of Hormuz. The disruptions in the Strait of Hormuz have already had a noticeable impact on Gulf economies. A Reuters survey in July projected that Qatar and Kuwait's economies would shrink by 8.1% by 2026, while Saudi Arabia's economy is expected to grow by 1.4%. Qatar has been particularly hard-hit, as its liquefied natural gas (LNG) exports are heavily reliant on the Strait of Hormuz. Since the outbreak of the conflict, Qatar's LNG export volume has dropped by 96%. Shipping activity remains limited. Preliminary data from Kpler shows that only seven bulk commodity vessels passed through the Strait of Hormuz last Thursday, compared to a 10-day average of 15 vessels prior. Gulf nations are using this opportunity to accelerate the development of alternative energy and trade routes along the Red Sea and Arabian Sea coasts to reduce their future strategic dependence on this single maritime chokepoint. [Original Link]