DUBAI: Ethiopia acquired a stake in a port in the breakaway state of Somaliland, its operator DP World said, as a legal dispute rages over another major Horn of Africa shipping hub.
Dubai-based DP World last week accused Djibouti of illegally seizing a port that is the main transit route to landlocked Ethiopia, the second most populous African nation.
More than 90 percent of Ethiopia’s trade passes through Djibouti, located on the Bab Al-Mandab strait, the key shipping lane to Europe from the Gulf and Asia beyond.
Under the agreement signed on Thursday in Dubai, Ethiopia will own 19 percent of Somaliland Berbera port, according to a statement released by DP World, which will hold a majority 51-percent stake.
Representatives from Somaliland were in Dubai for the signing of the deal, which will leave their self-declared state with a 30 percent stake in Berbera port.
Somaliland is not recognized by the international community despite 25 years of de facto independence from the rest of war-torn Somalia.
Ethiopia will invest in developing infrastructure at the Berbera corridor as a trade gateway for the inland country, the statement said.
DP World has also pledged to invest $442 million to develop Berbera, strategically located on the Gulf of Aden coast near the entrance to the Red Sea. The group, one of the world’s largest port operators, won a 30-year concession for the management and development of a multi-purpose port project at Berbera in 2016.
Before Thursday’s agreement, DP World owned 65 percent of the project and Somaliland held the remaining 35 percent.
DP World last week announced it planned to seek international arbitration against Djibouti, after the tiny state terminated its 50-year concession at the Doraleh container terminal.
The Dubai government has also publicly criticized the decision by Djibouti, which is home to military bases of the US, France, Italy, Spain, Saudi Arabia, Japan and China.
The Chinese base is immediately adjacent to the Doraleh terminal.
Doraleh is the terminus for a Chinese-built railway, which opened in 2016, linking Djibouti with the Ethiopian capital Addis Ababa.
DP World, which operates 78 marine and inland terminals in 40 countries, is also focused heavily on concession deals for ports in war-torn Yemen and across the Horn of Africa.
Ethiopia buys stake in Dubai-managed Somaliland port
Ethiopia buys stake in Dubai-managed Somaliland port
Closing Bell: Saudi main index closes in red at 10,452
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Tuesday, losing 137.26 points, or 1.30 percent, to close at 10,452.91.
The total trading turnover of the benchmark index was SR3.61 billion ($964.2 million), as 25 of the listed stocks advanced, while 235 retreated.
The MSCI Tadawul Index decreased, down 16.79 points or 1.21 percent, to close at 1,374.55.
The Kingdom’s parallel market Nomu lost 246.13 points, or 1.04 percent, to close at 23,470.28. This comes as 23 of the listed stocks advanced, while 51 retreated.
The best-performing stock was AlAhli REIT Fund 1, with its share price surging by 4.15 percent to SR6.52.
Other top performers included Dar Alarkan Real Estate Development Co., which saw its share price rise by 3.47 percent to SR15.80, and Arabian Drilling Co., which saw a 1.53 percent increase to SR96.35.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.40 percent to SR20.66.
Sport Clubs Co. and Rabigh Refining and Petrochemical Co. also saw declines, with their shares dropping by 5.10 percent and 4.76 percent to SR8.75 and SR7, respectively.
On the announcements front, Saudi Arabia Refineries Co. has formally established its new subsidiary, Clean Energy Co., announcing the completion of its articles of association and commercial registration.
The wholly owned limited liability company, headquartered in Bish City, is slated to operate in the critical sectors of metal mining, organic chemical manufacturing, and the production of primary gases, including liquid and compressed air.
According to the official announcement on Tadawul, the subsidiary will commence operations after finalizing all remaining incorporation requirements, which encompass administrative and technical arrangements as well as securing the necessary operational licenses.
The move marks a strategic expansion for the parent company into the industrial and clean energy supply chain. Sarco’s shares traded 0.93 percent lower on the main market today to reach SR53.
