Saudi Arabia has inked an agreement to create a logistics zone in Djibouti’s port, aiming to use the strategic location as a springboard for distributing its products and services across the African continent, thereby enhancing economic connections. The pact was formalized during a visit by Saudi investors to Djibouti, with Hassan Al-Huwaizi of the Federation of Saudi Chambers and Djibouti Ports and Free Zones Authority’s chairman Aboubaker Omar Hadi penning the deal.
The significant delegation led by Al-Huwaizi consisted of over 100 business leaders and government officials who are set on pushing forward this groundbreaking venture. The logistics zone, which covers 120,000 square meters in its first phase, is bound by a 92-year agreement, marking a significant step in the economic relationship between Saudi Arabia and Djibouti.
Positioned as a central hub for trade and innovation, the Saudi logistics city is poised to amplify the Kingdom’s influence throughout Africa, as detailed by the Saudi Press Agency.
Djibouti’s port serves as a critical gateway for the continent, opening avenues for Saudi exports and products to penetrate new markets, thereby fostering increased economic engagement.
Furthermore, the Saudi-Djibouti Business Forum, which saw participation from over 300 individuals, showcased a plethora of investment prospects, accentuating Djibouti’s allure as a free zone.
In exchange, Djibouti’s leadership has pledged to offer Saudi investors equal treatment, ensuring equitable access to opportunities in various domains, including renewable energy and technology.
This cooperative venture is a testament to the shared resolve to cultivate enduring economic collaboration between the two nations.
Just recently in February, Djibouti’s president reaffirmed his nation’s commitment to maritime security in the Red Sea. President Ismail Omar Guelleh stated that Djibouti is working closely with world powers such as Saudi Arabia to secure safe maritime corridors in the Bab El-Mandeb strait and the Gulf of Aden.
Guelleh highlighted Djibouti’s crucial role in global commerce and its cooperation with countries like the US, France, the UK, and those along the Red Sea coast in combating terrorism and ensuring maritime security, with a special nod to Saudi Arabia’s involvement.
The president reminisced about the longstanding connection with Saudi Arabia, tracing back to Djibouti’s independence in 1977, and expressed a desire to deepen cooperation in maritime transport, logistics, and port services, building upon the notable advancements in port infrastructure.
Djibouti’s envoy to Saudi Arabia, Dya-Eddine Saïd Bamakhrama, conveyed to Arab News the significance of the contract for the logistics city, noting it will establish the most extensive logistics hub outside Saudi Arabia and grant Saudi products and exports easier access to numerous African nations.