Saudi investors will develop a 120k sqm logistics hub at Djibouti Port

A consortium of Saudi investors inked a 92-year contract to establish a 120k sqm Saudi Logistics City in Djibouti Port freezone, poised to become the Kingdom’s largest foreign logistics zone, SPA reports. No additional details regarding an investment ticket or timeline for execution were disclosed.

Who’s in? While no specifics were disclosed, this project is the result of a visit by the delegation of the Federation of Saudi Chambers to Djibouti including over 100 investors and representatives of several government agencies and entities, SPA writes.

Details: The hub will cover some 120k sqm in its first phase, and will include a permanent exhibition, platforms for Saudi firms, and a trade area that includes facilities such as warehouses, SPA said. The project is set to position Djibouti’s port as a gateway for Saudi exports to Africa. Authorities from Djibouti have pledged to grant Saudi Arabian industries similar facilities and incentives to those extended to their Djiboutian counterparts at the freezone, SPA added.

Djibouti + KSA are doubling down on ties: Djibouti’s President Ismaïl Omar Guelleh provided statements alluding to the project in a February interview with Al Sharq Al Awsat. Efforts were ongoing to develop maritime and air freight projects linking KSA and Djibouti, including the establishment of a freezone and warehousing for Saudi exports at Djibouti’s international freezone in a bid to boost Saudi exports to Africa, Guelleh said. Both states are also cooperating on ports and maritime security in the Red Sea, he added.