Dubai-listed Gulf Navigation Holding is looking to maximise returns amid rising demand for energy storage that has sent costs skyrocketing due to the ongoing Middle East conflict.

The shipping and maritime logistics firm has announced plans to expand its energy sector portfolio, noting that Fujairah – its primary storage base - has seen an increase in costs following rising global demand for energy storage and handling services.

The US and Israeli war on Iran, now entering its fifth week, has led to a blockade of the Strait of Hormuz, one of the most important maritime chokepoints for the energy sector, where roughly 20% of the world’s oil passes through.

With the vital passage now disrupted, analysts have pointed to the UAE’s major bunkering hub in Fujairah, which is outside the Strait, as the only remaining way to move oil out of the Gulf region.

Gulf Navigation, which recently completed its acquisition of Brooge Energy, owns and operates one of the world’s most advanced storage and blending terminals in the emirate.

The firm reported total operating revenue of AED 307.5 million for 2025, up 9% from a year earlier. It said it now looks forward to “sustaining its growth trajectory” in light of rising storage requirements in the energy sector, particularly in Fujairah.

“Fujairah has witnessed a notable rise in storage costs driven by growing demand on its storage capacity,” the company said.

“Its strategic importance stems from its unique geographical location on the eastern coast of the United Arab Emirates, overlooking one of the world’s most critical maritime routes near the Strait of Hormuz.”

According to International Energy Agency (IEA) estimates, crude and oil product flows through the Strait of Hormuz have plunged from 20 mb/d before the war to a trickle currently.

Since the Middle East conflict began, storage costs in Fujairah have doubled or tripled as the port in the emirate reached 90% capacity, according to reports.

(Writing by Cleofe Maceda; editing by Seban Scaria) Seban.scaria@lseg.com