CUSTOMERS

Why Fujairah

Fujairah started out as an oil hub mainly for bunker fuel in the mid-90s and the activity has been growing ever since, to the extent that Fujairah is now the second-largest bunkering hub in the world after Singapore.

The strategic location of the Port of Fujairah is certainly extremely advantageous to Fujairah Oil Terminal FZC (FOT), as Fujairah being the only one of the seven Emirates of the UAE, to lie wholly outside the Arabian Gulf, on the Indian Ocean side of the Strait of Hormuz. This unique location provides easy access to a corridor out of the Arabian Gulf that bypasses the Strait of Hormuz in case of any geopolitical tension. Therefore, Fujairah grew very quickly from a humble bunkering location, into a world class hub for refined products trading and strategic Crude storage location. This is translated in the increased number of vessels and throughput served by our terminal and the port of Fujairah, especially over the last four years.

The increased competition in Fujairah Market over the past 8 years has turned the table around from a monopoly to a buyer’s market. This only meant that service, reliable infrastructure and experienced staff play a major role in keeping the terminal at a high utilization rate rather than just a brand name or price.

Contango in the Crude market is a small fraction of the market in Fujairah.
Traders in the recent years focus more on sustainable business models, covering market shortages or strategic storage, making bulk and also serve niche markets.