In an ambitious move to enhance trade relations, Saudi Arabia has been spearheading a significant push to establish and optimize maritime routes with the Republic of Djibouti. This initiative seeks to utilize the capabilities of the Saudi Logistics City situated within Djibouti’s free zone. Formed under a June agreement, this hub aims to serve as a gateway for Saudi exports to reach a consumer base of over 500 million in the East African region.
The logistics city will feature permanent storage solutions, logistic support services, and administrative offices, catering to the diverse needs of investors and traders. A workshop was recently conducted to discuss the operational aspects of the shipping lanes linking Jazan in Saudi Arabia with Djibouti. This event was a collaborative effort by the Federation of Saudi Chambers, Jazan’s Chamber of Commerce, and the Saudi Ministry of Transport and Logistics Services.
Key participants at the workshop included Jazan Chamber of Commerce Chairman Ahmed Abu Hadi, delegates from various governmental sectors, and representatives of local and international corporations. The discourse centered around activating both air and sea freight routes, addressing the challenges Saudi investors face in the Horn of Africa, and exploring the potential for investments, along with the incentives and support mechanisms available.
One of the outcomes of this engagement was an agreement to undertake a detailed study to identify the most advantageous products for export and import between the two markets. Proposals were made to enhance navigational routes, sign treaties to protect investors, and boost direct investment. Additionally, the importance of fostering robust communication channels between city officials and the business community was underscored.
In line with these efforts, the Saudi Ports Authority is leveraging partnerships with top-tier global shipping companies to facilitate maritime services between the Kingdom and Djibouti. This collaboration has already resulted in the successful shipment of approximately 20,000 containers to the Port of Djibouti within the current year.