At the core of Fujairah’s evolving fuel ecosystem

UAE

Salem Abdullah Al Afkham, director of Fujairah Oil Industry Zone (FOIZ), talks to The Energy Year about becoming the Middle East’s largest commercial storage hub for oil products, and top-three globally with Singapore and Rotterdam. FOIZ is the government entity in charge of developing oil and gas infrastructure in Fujairah.

What role does FOIZ play in Fujairah’s economic development?
Our role at FOIZ extends beyond project development; we are a key driver of growth. With more than 2,000 employees, we are a pillar of Fujairah’s economy. Moreover, we serve as the regulatory arm overseeing Fujairah’s hydrocarbons sector and play a pivotal role in shaping the energy ecosystem. Our influence is not confined to Fujairah; it extends to the UAE and beyond. We are truly a global player.

How can Fujairah become more successful as a global trading hub?
Geography plays a crucial role in our success, but equally important is the vision of H.H. Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah, and our government. Their support has ensured the necessary resources are available to achieve our goals.
We have a well-defined strategy and we look ahead to stay relevant in the market – that’s how we operate, and our approach has earned us the trust of our customers. We listen to our customers, adapt to their needs and align with market demand, creating value and win-win partnerships. The Port of Fujairah serves as our operating arm – every drop of oil entering or leaving FOIZ does so through the Port of Fujairah.

What does FOIZ offer to make the Port of Fujairah more competitive?
We pursue continuous improvement, not just for FOIZ, but for Fujairah as a whole; this commitment is central to our success. We constantly enhance our operations and offerings, making progress day by day. FOIZ does not operate in isolation; its success is intertwined with the broader infrastructure and support systems in Fujairah. The emirate boasts superior infrastructure across its various transportation networks, the Fujairah Free Zone and the Port of Fujairah.
One of FOIZ’s standout features is its seamless terminal connectivity – fuel can be transferred between tanks at various terminals, which reduces time, carbon emissions and handling costs for our customers. We also have state-of-the-art technologies that ensure high efficiency, compliance with international HSEQ standards and alignment with the latest industry requirements.
Fujairah offers a business-friendly environment where newcomers receive guidance and support every step of the way. Transparency is paramount to FOIZ. In partnership with S&P Global, we publish product availability and throughput data that the public can consult with a click of a button. This is an important aspect of our governance, and it makes our decision making process faster and more effective.

What is your assessment of Fujairah’s potential to become an LPG trading hub?
We see strong interest from the market in LPG and have been in discussions with several counterparts regarding new LPG projects. However, setting up an effective LPG framework requires a number of key components and appropriate infrastructure, such as LPG-specific loading arms, offloading and storage infrastructure, and HSE regulations.
It is also critical for project owners to secure reliable long-term supply and offtake contracts to ensure long-term success. LPG is an excellent transitional energy source that allows Fujairah to step closer to the UAE’s 2050 Net Zero Strategy.

Where do sustainability considerations fit within FOIZ’s business plans and vision for the future?
For the past 30 years, we have been making significant contributions to the oil and gas industry in Fujairah, and we are committed to shaping a cleaner, more sustainable future. Fujairah is one of the UAE’s great success stories; we are continually evolving, innovating and looking ahead. We do not shy away from challenges or the unknown – we embrace them.
The future of FOIZ and Fujairah is greener, with a much more diversified energy mix. We are committed to reducing our environmental impact and improving lives locally, regionally and beyond. Our plans for FOIZ include a new sustainable aviation fuel unit, biofuel production and several waste-to-energy projects expected to be commissioned in the coming 24-36 months. Circular economies, recycling per MARPOL regulations and generating energy from waste are all central to FOIZ’s strategy to move closer to near-zero-carbon fuels.
The path ahead is exciting, yet it also brings challenges. We must reshape mindsets and encourage industries to embrace new ways of looking at energy, generating value and doing business. The shift is necessary, and we are leading the way.

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