Key Points
- UAE is developing alternative routes for energy exports and trade amid conflict with Iran.
- The country is expanding eastern ports, pipelines, railways and other trade corridors.
- Presidential adviser Anwar Gargash says restoring trust with Iran could take decades.
Main Story
The United Arab Emirates (UAE) is developing alternative routes for its energy exports and trade as the conflict with Iran threatens to disrupt the country’s access to key regional shipping routes.
UAE presidential adviser Anwar Gargash disclosed this on Monday at the Hili Forum in Abu Dhabi, saying the country would not allow its energy exports or economic activity to be disrupted by the war.
“Our energy exports will not be held hostage, nor will our trade and economic activity,” Gargash said.
He said the UAE was expanding port capacity along its eastern coast while developing pipelines, railways and other trade routes to create alternative corridors for exports and trade.
The measures come after the conflict significantly affected Gulf Arab states, including the UAE, as Iran launched missile attacks against the country and targeted oil tankers in the Strait of Hormuz.
Gargash said the UAE could eventually restore a functional relationship with Iran, but warned that rebuilding confidence between Tehran and its Gulf neighbours would be considerably more difficult.
“A functional relationship with Iran can and must be restored, but rebuilding trust is another matter,” he said.
The UAE, which has been an important economic link for Iran, suspended financial and economic transactions with the country in August, citing military escalation by Tehran and missile threats.
Gargash also criticised the collective response of Gulf Arab states to the Iranian attacks, saying their actions had not matched their understanding of the threat posed by Tehran.
He said the Gulf states had broadly recognised the nature of the challenge posed by Iran but had failed to translate that shared assessment into a sufficiently coordinated strategic response.
The Issues
The UAE’s development of alternative infrastructure reflects efforts to reduce the exposure of its energy exports and wider trade to disruption along established regional routes.
The eastern coast infrastructure, including ports, pipelines and rail links, is intended to provide additional channels for moving energy and goods if existing routes become vulnerable because of regional conflict.
The crisis has also created a diplomatic challenge for the UAE, which maintains economic links with Iran while facing security threats arising from the conflict.
What’s Being Said
“Our energy exports will not be held hostage, nor will our trade and economic activity,” Gargash said.
“A functional relationship with Iran can and must be restored, but rebuilding trust is another matter,” he said.
“The problem was therefore not a lack of understanding. Where we fell short in confronting this historic challenge was translating this shared understanding into sufficiently united and strategic response,” Gargash said.
What’s Next
The UAE is continuing to expand alternative ports, pipelines, railways and trade corridors along its eastern coast as it seeks to protect energy exports and economic activity from regional disruptions.
Gargash said relations with Iran could eventually be restored, although rebuilding trust with neighbouring Gulf states could take much longer.
Bottom Line
The UAE is strengthening alternative energy and trade routes to reduce its vulnerability to disruptions caused by the Iran conflict. At the same time, Abu Dhabi says restoring normal relations with Tehran may be possible, but rebuilding regional trust could take decades.
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