Ayesha Daya explains why the UAE’s capital is turning to the ‘more distant Fujairah’.
The Bloomberg article reports on Abu Dhabi’s bankrolling of infrastructure projects in the eastern emirate including the country’s biggest power and water plant costing $2.8 billion.
The number of threats by Iran to block the traditional oil passage through the Strait of Hormuz seems the biggest motivation for Abu Dhabi looking north-east.
The recession hitting the building programme in Dubai has also shifted Fujairah’s reliance on exporting rocks to becoming a centre for trade, oil storage and the transshipment of crude oil.
For tanker war, Iranian threats, pipeline projects and oil bottlenecks follow this link:
Ayesha Daya, Abu Dhabi Paymasters Fund Fujairah Oil Hub to Bypass Hormuz, Bloomberg, 16 September 2010. Also reposted in Arabian Business.
This article is also posted on the Fujairah in Focus Facebook Page upon which many more articles and links are posted than on this blog.
Image: Abu Dhabi’s pipeline to Fujairah will bypass the Strait of Hormuz which Iran threatens to block. (Picture courtesy of the Gulf Blog)