Arab News, Wed, Jun 05, 2024 | Dhu al-Qadah 28, 1445
Saudi Arabia establishes logistics zone in Djibouti to expand economic presence in Africa
Saudi Arabia:
Saudi Arabia has signed a deal to establish a logistics zone in the port of
Djibouti, leveraging Africa’s gateway to propel the Kingdom’s products and
exports, fostering economic interplay.
During a delegation visit of Saudi investors to
the capital city of the East African country, the contract was signed by Hassan
Al-Huwaizi, president of the Federation of Saudi Chambers, and Aboubaker Omar
Hadi, chairman of Djibouti Ports and Free Zones Authority.
Under the leadership of Al-Huwaizi, the
delegation, including over 100 entrepreneurs and government representatives,
came together to advance this transformative initiative.
The 92-year contract for the logistics zone,
spanning an expansive area of 120,000 sq. m. in its inaugural phase, underscores
a pivotal milestone in Saudi-Djibouti economic relations.
The Saudi logistics city, serving as a nexus for
commerce and innovation, is positioned to strengthen the Kingdom’s economic
presence across the African continent, as reported by the Saudi Press Agency.
Djibouti’s port, strategically located as Africa’s
gateway, facilitates the expansion of Saudi products and exports into new
markets, promoting robust economic interplay.
Simultaneously, the Saudi-Djibouti Business Forum,
attended by over 300 stakeholders, unveiled a range of investment opportunities,
highlighting Djibouti’s appeal as a free zone.
In return, Djibouti authorities have promised
equal treatment for Saudi investors, guaranteeing fair opportunities across
sectors, from renewable energy to technology.
This collaborative effort emphasizes a steadfast
commitment to fostering lasting economic cooperation between the two nations.
In February, Djibouti’s president reaffirmed his
country’s dedication to promoting maritime security in the Red Sea.
Ismail Omar Guelleh noted that the East African
nation was collaborating with major powers, including Saudi Arabia, to ensure
safe passage for international shipping in the Bab El-Mandeb and the Gulf of
Aden.
He emphasized that Djibouti’s strategic position
made it a key player in facilitating global trade, mentioning cooperation with
nations such as the US, France, the UK, and Red Sea coastal states, especially
Saudi Arabia, in counterterrorism efforts and maritime security.
Guelleh had underscored Djibouti’s longstanding
ties with Saudi Arabia, dating back to 1977 when his country gained
independence.
The president added that Djibouti aimed to further
enhance collaboration with Saudi Arabia, especially in maritime transport,
logistics, and port services, building on significant progress in port
development.