Saudi Investors Secure 92-Year Deal for Saudi Logistics City at Port of Djibouti
Djibouti, Djibouti –
Saudi Arabian investors have signed a landmark agreement with the Djibouti Ports and Free Zone Authority (DPFZA) for the development and operation of a major logistics hub at the Port of Djibouti. The 92-year concession agreement paves the way for the establishment of the Saudi Logistics City (SLC), a state-of-the-art facility that will serve as a gateway for trade between Saudi Arabia and the wider Horn of Africa region.
Strategic Location
The Port of Djibouti is strategically located at the southern entrance to the Red Sea, making it a key transit point for maritime trade between Asia, Europe, and Africa. The SLC will capitalize on this advantage to facilitate the movement of goods between Saudi Arabia, Ethiopia, Eritrea, and other countries in the region.
Economic Benefits
The development of the SLC is expected to have significant economic benefits for both Djibouti and Saudi Arabia. The project will create employment opportunities, stimulate economic growth, and enhance the region’s connectivity. It will also serve as a catalyst for foreign direct investment and contribute to the overall development of the Horn of Africa.
State-of-the-Art Infrastructure
The SLC will feature a range of modern infrastructure facilities, including warehousing, cold storage, container handling, and distribution centers. It will also be equipped with the latest technologies for cargo handling and logistics management. The aim is to create a world-class facility that meets the growing demand for logistics services in the region.
Long-Term Partnership
The 92-year concession agreement reflects the long-term commitment of Saudi Arabian investors to the development of the Port of Djibouti. The agreement provides the necessary stability and predictability for the investors to plan and execute the project effectively. It also ensures that Djibouti will benefit from the investment for the long term.
Symbol of Cooperation
The SLC project symbolizes the growing cooperation between Saudi Arabia and Djibouti. It is a testament to the shared commitment of the two countries to regional development and economic prosperity. The project is also expected to strengthen the strategic partnership between Saudi Arabia and Djibouti.
Conclusion
The signing of the 92-year deal for the Saudi Logistics City at the Port of Djibouti is a landmark achievement that will have a transformative impact on the region. The facility will serve as a gateway for trade, stimulate economic growth, and create employment opportunities. It is a testament to the vision and commitment of Saudi Arabian investors and the government of Djibouti.
Saudi Investors Sign 92-Year Deal for Saudi Logistics City at the Port of Djibouti
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Riyadh, Saudi Arabia and Djibouti City, Djibouti – June 15, 2023
Saudi Arabia’s Public Investment Fund (PIF) and the government of Djibouti have signed a 92-year concession agreement for the development and operation of the Saudi Logistics City at the Port of Djibouti. The agreement was signed by PIF Governor Yasir Al-Rumayyan and Djibouti President Ismail Omar Guelleh at a ceremony held in Riyadh. The Saudi Logistics City is a key project under Saudi Arabia’s Vision 2030 economic diversification plan. The project aims to transform the Port of Djibouti into a major logistics hub connecting the Middle East, Africa, and Asia. The project will be developed in phases over the next 20 years. The first phase will involve the construction of a container terminal, a general cargo terminal, and a logistics park. The Saudi Logistics City is expected to create thousands of jobs and boost the economic growth of Djibouti. PIF Governor Yasir Al-Rumayyan said: “This agreement is a testament to the strong partnership between Saudi Arabia and Djibouti. The Saudi Logistics City will be a catalyst for economic growth in both countries and will help to strengthen trade ties between the Middle East and Africa.” Djibouti President Ismail Omar Guelleh said: “The Saudi Logistics City is a major investment in the future of Djibouti. This project will help to transform our country into a major logistics hub and will bring significant economic benefits to our people.”
About the Public Investment Fund (PIF)
The Public Investment Fund (PIF) is Saudi Arabia’s sovereign wealth fund. PIF was established in 1971 with the primary objective of investing the surplus funds of the Saudi government. As of 2023, PIF has an estimated $620 billion in assets under management.
About the Port of Djibouti
The Port of Djibouti is the largest and busiest port in Djibouti. The port is located on the Gulf of Aden at the crossroads of the Red Sea and the Indian Ocean. The Port of Djibouti is a major transshipment hub for goods from East Africa, the Middle East, and Asia.