Imagine a thriving logistics hub in Africa, connecting the dynamic markets of Saudi Arabia with the vast opportunities of the continent. This vision is becoming a reality as Saudi Arabia embarks on an ambitious project to establish a logistics zone in Djibouti, enhancing its economic footprint across Africa.
Forging Strong Economic Ties
In a significant step towards economic collaboration, Saudi Arabia has inked a deal to create a logistics zone in Djibouti’s port. This strategic initiative aims to leverage Djibouti’s position as Africa’s gateway, thereby facilitating the flow of Saudi products and exports into new markets. The agreement was formalized during a visit by a Saudi delegation, led by Hassan Al-Huwaizi, president of the Federation of Saudi Chambers, and included over 100 entrepreneurs and government officials. The contract was signed with Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zones Authority.
Spanning an impressive 120,000 square meters in its first phase, this 92-year contract marks a monumental milestone in the economic partnership between Saudi Arabia and Djibouti. The logistics city is set to become a hub for commerce and innovation, significantly boosting Saudi Arabia’s economic influence across Africa.
Unlocking New Opportunities
Djibouti’s strategic location as Africa’s gateway offers Saudi Arabia unparalleled access to expand its products and exports, fostering robust economic interactions. The Saudi-Djibouti Business Forum, which gathered over 300 stakeholders, showcased a plethora of investment opportunities, particularly emphasizing Djibouti’s appeal as a free zone.
Promising equal treatment for Saudi investors, Djibouti authorities are ensuring fair opportunities across various sectors, including renewable energy and technology. This collaborative endeavor underscores a mutual commitment to nurturing long-lasting economic cooperation between the two nations.
Building on Historical Ties
In February, Djibouti’s President Ismail Omar Guelleh reaffirmed his country’s commitment to enhancing maritime security in the Red Sea, collaborating with major powers like Saudi Arabia. Recognizing Djibouti’s strategic position in global trade, Guelleh highlighted partnerships with nations such as the US, France, the UK, and Red Sea coastal states, particularly Saudi Arabia, in counterterrorism and maritime security efforts.
These longstanding ties, dating back to Djibouti’s independence in 1977, are set to grow further, especially in maritime transport, logistics, and port services. Dya-Eddine Saïd Bamakhrama, Djibouti’s ambassador to Saudi Arabia, expressed optimism about the project, stating that this partnership will establish the largest logistics city outside the Kingdom, facilitating access for Saudi exports to a multitude of African countries.
