UAE’s logistics corridors cut reliance on Hormuz

• UAE-Oman trade rises sharply
• Rail links strengthen cargo flows
• Hatta crossings surge in H1

New land trade corridors developed in response to the US-Iran war are carrying increasing volumes of goods between the UAE and Oman as businesses adapt to restrictions on shipping through the Strait of Hormuz.

The growth is significant for the UAE, which has accelerated efforts to build alternative routes to bypass the strategic chokepoint since the start of the conflict, using road, rail and ports to keep trade moving.

Trade between Sharjah and Oman rose sharply in the first three months after a new sea-land logistics corridor opened in May.

The value of goods traded surged 66 percent to AED1.7 billion ($463 million) by August 17, the state-run Wam news agency reported, quoting the Sharjah Ports, Customs and Free Zones Authority.

Truck movements surpassed 34,000, while processed customs declarations exceeded 32,000. The UAE has more than 200,000 registered heavy trucks.

The corridor connects ports and logistics hubs via the Khatmat Malaha border crossing in Kalba and Al Madam border crossing, extending into Oman.

Mohammed Ibrahim Al Raisi, director of border crossings and entry points affairs at the Sharjah Ports, Customs and Free Zones Authority, said the next phase will focus on expanding the base of companies using the corridor, attracting more shipping companies and logistics service providers, expanding services and adding more routes.

Trade through the Hatta Customs Crossing – the overland trade and travel gateway between the UAE and Oman – grew sharply in the first half of 2026 after the closure of the Strait of Hormuz.

The number of loaded trucks rose 160 percent to 109,000 between January and June, from 42,000 a year earlier.

Separately, Etihad Rail, the developer and operator of the UAE National Rail Network, and AD Ports Group launched a direct rail service connecting Fujairah Terminals with the Industrial City of Abu Dhabi.

The freight service will operate three times per week, strengthening multimodal cargo flows across the corridor, Wam news agency reported.

• Strait of Hormuz traffic drops sharply while oil prices gain
• Trucking gains as Gulf logistics undergoes rapid change
• UAE and Oman trade through Hatta gateway rises sharply

Fujairah Terminals is one of the UAE’s main trade centres, supporting connectivity across the GCC, India, the Red Sea and East Africa.

Last week Oman’s transport minister Saeed Al Maawali said construction is moving ahead on Hafeet Rail, with a trial run starting in the final quarter of 2027.

Hafeet Rail is a joint venture between Etihad Rail, Oman Rail and Mubadala Investment Company.

The 238km line will connect the Sohar Port free zone in northeastern Oman to the UAE rail network and include two 2.5km tunnels and 36 bridges.