Building a New Maritime Hub in the Middle East

By Dennis Daniel

Hugh Cox, chief commercial officer at RAK Ports, shares exclusive insights with Breakbulk on Ras Al Khaimah’s US$1 billion Saqr 2.0 project – an ambitious greenfield development in the UAE poised to reshape regional trade.

From Issue 3, 2025 of Breakbulk Magazine.

(5-minute read)

Over the past few decades, the UAE emirate of Ras Al Khaimah has established itself as a vital hub for international trade and tourism, enabled by its strategic location near the Strait of Hormuz and Arabian Gulf, along one of the world’s busiest shipping routes.

The driving force behind Ras Al Khaimah’s growth and success as a maritime hub is RAK Ports, which operates a network of ports and freezones handling over 100 million tonnes of cargo annually.

They include the Saqr Port, the largest bulk cargo handling port in the Middle East and Africa; RAK Maritime City freezone; Ras Al Khaimah Port; and Al Jazeera Port and Shipyard. Together, they provide a variety of services including bulk cargo and project cargo handling, freezone and land lease, warehousing and cold storage, and ship repair and maintenance.

In an effort to venture into new markets and cater to emerging customer needs, RAK Ports is developing the US$1billion Saqr 2.0 project - a greenfield development that includes the construction of a multipurpose, deepwater port and land facilities.

The new Saqr 2.0 port will have a draft range of 12–18 meters, accommodate capesize vessels, support a variety of cargo types, and unlock approximately 5 million square meters of freezone land with direct quayside access.

Hugh Cox, chief commercial officer, RAK Ports, explained the rationale for the project to Breakbulk. “We identified a significant gap in the market, where customers are actively seeking freezones directly connected to the quayside. In particular, we see strong demand for more quayside land and deeper drafts,” he says.

One of the distinguishing features of Saqr 2.0 will be its 18 meters of draft, the deepest draft in the region, compared to the current maximum draft of 15 meters at other UAE ports.

Multi-phase Development

The Saqr 2.0 project is planned in three phases. The first phase is scheduled to commence operations in 2027 with the opening of the first basin, and the second phase is expected to be completed by 2030.

The first phase of Saqr 2.0 will see 6–10 berths added to the current 47 berths at the Saqr Port and RAK Maritime City. It will also add a cargo handling capacity of approximately 50 million tonnes per annum to the current 100 million tonnes per annum handled by the Saqr Port and RAK Maritime City.

The third phase of the project will take a more flexible approach and is expected to run into the 2030s.

“Saqr 2.0 allows room for expansion and adaptability to future customer requirements. We see the potential to expand the freezone after 2030 and increase the total area from 5 million square meters to approximately 12 to 14 million square meters in the third phase of the project,” says Cox.

Poised for a ‘Dubai Moment’

RAK Ports’ growth strategy is in line with that of the emirate itself, which is projected to see 4% of real GDP growth during 2024–2027, driven by tourism and infrastructure projects. This has led to S&P Global raising its sovereign credit ratings for Ras Al Khaimah from ‘A-/A-2’ to ‘A/A-1.’

S&P Global expects Ras Al Khaimah’s economic growth and fiscal position to remain strong until 2027 due to a solid pipeline of tourism-related development projects, and that its mining sector, economic freezones, real estate and ports will benefit from strong non-oil growth and infrastructure spending in the UAE, GCC and Indian subcontinent.

“The timing couldn’t be better for RAK Ports and the Saqr 2.0 expansion, as Ras Al Khaimah is poised for its own Dubai moment,” says Cox.

He explains: “The Saqr Port is transforming into what the Jebel Ali Port represented in the 1990s, and this is happening against the backdrop of Ras Al Khaimah’s economic growth and diversification. RAK Ports recognizes this as an opportunity to build on its strengths.

“As a well-positioned and well-structured network of ports with excellent land facilities, RAK Ports is in a strong position to expand into diverse markets and establish Ras Al Khaimah as a strategic hub to serve other growth markets in the region.”

New Opportunities

As with any other port in the UAE, Saqr 2.0 offers the strategic advantage of high geopolitical stability for customers. The port is designed to function as a major common user terminal and enhance vessel traffic in the region.

“Saqr 2.0 will offer a range of new services while complementing those provided by the neighboring ports of Fujairah, Dubai and Abu Dhabi. We are committed to maximizing accessibility and efficiency while creating a benchmark for port-land connectivity in the region,” says Cox.

With Saqr 2.0, RAK Ports sees significant opportunities in expanding into new markets by developing the port into a transshipment hub, expanding cargo handling services, building new fabrication capabilities, and integrating automation for efficient land-to-berth connectivity.

“Our focus is on diversification and future growth markets, and therefore, our priority is to identify new markets and businesses. For example, we see opportunities to expand our bulk handling facilities, particularly for liquid bulk. We also plan to expand our ship repair and maintenance facilities, potentially relocating them from Al Jazeera Port to Saqr 2.0 in the future.

“Another focus area for us is minimizing our carbon footprint and transforming Saqr 2.0 into a green port. This would require us to explore environmentally sustainable and eco-friendly industries and practices. In this regard, we see significant potential in new services such as green ship recycling, which could enable us to cater to European and Western markets,” says Cox.

RAK Ports aims to become an enabler of energy transition by facilitating manufacturing and logistics for renewable energy projects. Cox anticipates a big opportunity for Saqr 2.0 to serve global wind energy projects through the supply of prefabricated components.

“I believe Saqr 2.0 could be a transshipment hub for wind energy projects in Asia and Europe. It could also capitalize on Ras Al Khaimah’s robust cement and concrete production industries to manufacture and export precast concrete parts for wind turbine foundations,” says Cox.

RAK Ports is also addressing the challenge of identifying the fuel of the future, whether it may be hydrogen, ammonia or natural gas, and planning the infrastructure required to handle them.

“Everybody wants a cost-effective fuel that is also reliable and accessible. Future fuels must also align with advancements in engine design and emerging technologies. While we develop long-term fuel solutions, we see an opportunity to offer biodiesel as a substitute fuel to shipping companies. It is an area where we can effectively support both our current and future customer base,” says Cox.

Customer Engagement

RAK Ports is actively collaborating with customers to ensure that the port meets all accessibility requirements beyond the quayside, including road infrastructure and conveyance pipelines.

Cox points out that customer engagement is a crucial aspect of the Saqr 2.0 project. “It is a two-way street: the port unlocks opportunities for the land and the land, in turn, unlocks opportunities for the port. We have been fortunate to learn from neighboring ports and our own experiences. This has enabled us to identify what works and what does not and develop strategies for tackling challenges effectively,” he says.

Cox envisions Saqr 2.0 becoming the most cost-effective and operationally optimized port in the region over the next 10 to 15 years. “Few ports have the capacity to expand as extensively as Saqr 2.0. No other port will be able to match the combination of port-land connectivity, access to major projects, deep draft, and availability of land.

“Saqr 2.0 will allow businesses to leverage the freezone and new port to support major infrastructure projects in the region as well as tap into export markets globally,” Cox says. “From a customer perspective, Saqr 2.0 is set to become the UAE’s leading hub for maritime trade.”

RAK Ports is an exhibitor at Breakbulk Middle East.

Photo credit: RAK Ports