{"id":115271,"date":"2026-05-20T00:00:00","date_gmt":"2026-05-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/menaplus\/?p=115271"},"modified":"2026-05-20T07:31:59","modified_gmt":"2026-05-20T07:31:59","slug":"the-gcc-is-building-for-a-post-hormuz-world","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/menaplus\/2026\/05\/20\/the-gcc-is-building-for-a-post-hormuz-world\/","title":{"rendered":"The GCC is building for a post-Hormuz world"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>The UAE and Saudi Arabia are engineering their way out of geographic vulnerabilities<\/strong>, pouring resources into bypass infrastructure designed to hedge against future trade disruptions. Adnoc is <a target=\"_blank\" href=\"https:\/\/www.mediaoffice.abudhabi\/ar\/crown-prince-news\/khaled-bin-mohamed-bin-zayed-chairs-meeting-of-executive-committee-of-adnoc-board-of-directors-may-2026\/\" style=\"\">accelerating<\/a> plans to double the amount of crude it can export from Fujairah outside Hormuz, as Sharjah is ramping up border crossing logistics with Oman. Meanwhile, Riyadh is looking further north with a push to revive a regional rail link to Europe via Lebanon and Syria. <\/p>\n<p class=\"tag-border-left\">The Emirati bypass push<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The UAE\u2019s strategy hinges on two parallel hedges:<\/strong> Expanding pipeline capacity at home and locking down more overseas storage capacity. On the pipeline side, the planned <a target=\"_blank\" href=\"https:\/\/www.theguardian.com\/business\/2026\/may\/15\/uae-oil-pipeline-strait-of-hormuz-by-2027\" style=\"\">expansion<\/a> would push the Habshan-Fujairah pipeline \u2014 known as Abu Dhabi Crude Oil Pipeline (Adcop) \u2014 to a throughput of some 3.6 mn bbl \/ d. On the storage side, India is emerging as a critical partner after the two countries <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-15\/modi-agrees-with-uae-to-build-strategic-crude-gas-stockpiles\" style=\"\">agreed<\/a> to nearly triple the roughly <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/energy\/modi-likely-seek-more-energy-supplies-uae-during-short-visit-sources-say-2026-05-14\/\" style=\"\">11 mn barrels-equivalent<\/a> of capacity that Adnoc currently leases in India to 30 mn barrels. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>More pipeline capacity also means more flexibility on the kind of crude that flows<\/strong><strong> through it.<\/strong> Adcop today carries only Murban, but the expanded line would eventually outstrip Murban production altogether \u2014 opening the door to rerouting offshore grades like <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-15\/uae-to-complete-new-hormuz-bypass-oil-pipeline-by-2027\" style=\"\">Upper Zakum<\/a> through Fujairah as well. That matters because the UAE produces around 1 mn bbl \/ d of Upper Zakum, of which around two-thirds are exported. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>India isn\u2019t the first country to eye Emirati crude in its backyard: <\/strong>Japan secured a commitment from the UAE <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/05\/07\/today-the-gulfs-land-bridge-play-is-here-to-stay\/\" style=\"\">earlier this month<\/a> to increase joint crude oil stockpiles, while South Korea already enjoys a <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/03\/09\/today-fertilizer-supply-under-pressure-from-hormuz-disruption\/\" style=\"\">storage agreement<\/a> with Adnoc that allows the company storage access in Northeast Asia.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The logic running through each of these agreements is the same: Distribute the risk <\/strong><strong>before the next disruption hits.<\/strong> Strategic reserves \u2014 once treated as static emergency stockpiles \u2014 are increasingly being repositioned as geographically flexible logistics tools, allowing buyers to position barrels close to alternative routes, refining centers, and safer export corridors outside immediate chokepoint exposure. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Zooming out:<\/strong> Now unshackled from production quotas after Opec\u2019s exit, Abu Dhabi is pushing ahead with plans to raise oil output to 5 mn bbl \/ d next year, and the added pipeline capacity gives Adnoc room to monetize those barrels even if shipping conditions through Hormuz remain unstable. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">The latest Saudi hedge effort<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Saudi\u2019s bypass bet is now tilting inland: <\/strong>With long coastlines on both sides and a resilient set of pipeline workarounds already in place, the Kingdom is now turning its attention to multiplying its land-based options. The most ambitious of these is the long-discussed revival of the Ottoman-era Hejaz railway, which once linked Saudi Arabia to Turkey via Jordan and Syria. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>IN CONTEXT- <\/strong>Riyadh\u2019s continued push for the project despite Syria\u2019s still-fragile landscape is itself a signal that the Kingdom is thinking long-term. It remains too early to know whether the railway will actually move ahead, but Saudi officials have been holding <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/04\/22\/abu-dhabi-deepens-china-ties-with-financial-hub-pact\/\" style=\"\">meetings<\/a> with counterparts in Syria and Jordan to push it along. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Lebanon also wants in:<\/strong> Beirut just <a target=\"_blank\" href=\"https:\/\/www.nna-leb.gov.lb\/en\/news\/203659\/rasamny-launches-tripoli-abboudieh-railway-tender-from-tripoli-port-security-key-to-investment-success-north-lebanon-poised-for-economic-growth-2\" style=\"\">launched<\/a> a tender for the design of its portion of the Hejaz railway, which is set to connect the port city of Tripoli to the Aabboudiye area on the country\u2019s northernmost border with Syria. For a country whose rail network has been dysfunctional for more than four decades since the civil war, even a credible plan would be a significant shift. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Background: <\/strong>Syria could unlock a new set of inland corridor options for the GCC, routes that make sense on both cost and speed, but whether they actually get used depends on a string of conditions that have yet to fall into place. We unpacked Syria\u2019s inland corridor potential in more depth in our deep dive <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/04\/10\/the-gulfs-next-lifeline-to-europe-hinges-on-syrias-recovery-and-cutting-through-knots-of-red-tape\/\" style=\"\">here<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">The era of redundancy is here<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Taken together, these moves capture how Gulf trade is being reorganized around <\/strong><strong>chokepoint <\/strong><strong>resilience.<\/strong> Our logistics desk <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/04\/16\/how-routes-decide-and-will-define-fortunes-in-the-gulf\/\" style=\"\">argued<\/a> a month ago that the region is moving away from dependence on a single optimal route and towards a \u201cportfolio of corridors\u201d model built around redundancy, <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/05\/07\/how-the-gulf-trucked-their-way-out-of-hormuz\/\" style=\"\">inland logistics<\/a>, storage, <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/04\/20\/gulf-oil-exporters-weigh-working-around-the-workaround\/\" style=\"\">pipelines<\/a>, and <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/03\/05\/can-gulf-ports-outrun-geography\/\" style=\"\">alternative ports<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It also says something about how exporters view risk: <\/strong>Where oil shippers once optimized for the shortest and cheapest route to market, the new playbook prioritizes survivability under stress \u2014 even when that means paying more for less capacity. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The appetite for redundancy is also no longer confined to export-heavy industries like oil.<\/strong> GCC airlines, for instance, are now grappling with how the hub-and-spoke model \u2014 built for efficiency and scale \u2014 has become a liability during the war. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>UAE is expanding pipelines and overseas capacity, whereas Saudi is looking at land bypasses<\/p>\n","protected":false},"author":1,"featured_media":115272,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2896],"tags":[2538,2717,2669,2563,2552,2562],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-115271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics","tag-enterpriseam","tag-logistics","tag-pipelines","tag-saudi-arabia","tag-trade","tag-uae","wpautop","entry"],"acf":{"mongo_id":"e6de0921-685a-4e8f-9c14-92d41d337532","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/5\/1027.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Redundancy","related_issue":[115261],"teaser":"UAE is expanding pipelines and overseas capacity, whereas Saudi is looking at land bypasses"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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