# Berbera port deal could shift Horn dynamics

> On 3 May 2018, Somaliland Sun reported a $442m DP World deal to develop Berbera Port, but did not establish what has happened since.

- By: Editorial Team, Somali Construction Review (https://somaliconstructionreview.com/about)
- Published: 30 September 2026
- Format: News story (reported from one named public source)
- Publication: Somali Construction Review (https://somaliconstructionreview.com)
- Subject: Infrastructure and Services
- Tags: ports, procurement, project-management
- Web version: https://somaliconstructionreview.com/blog/berbera-port-deal-horn-dynamics

## Key points

- Somaliland Sun reported on 3 May 2018 that DP World was set to begin a Berbera port project later in 2018, despite a ban by Somalia's parliament.
- The report details a $442 million deal signed in 2016, Ethiopia's 19% stake, and regional tensions, but does not establish any developments after that date.
- No evidence in the report confirms construction has started, the road has been built, or the deal's current status.

Somaliland Sun reported on 3 May 2018 that DP World was set to begin a project at Berbera Port later in 2018, despite being officially banned from operating in Somalia that March. The report does not establish what has happened since that date.

Somaliland Sun reported that in 2016, the United Arab Emirates state-owned ports operator closed a deal worth $442 million to develop and manage the strategically located Berbera Port. The company entered the agreement with Somaliland, an autonomous but unrecognised breakaway region in northern Somalia.

The federal government in Mogadishu opposed the deal, seeing it as an infringement of its authority, according to the report. In March 2018, Somalia's national parliament voted unanimously to ban DP World. The report says Somalia has invalidated the deal and lodged official complaints with the Arab League and African Union.

## Stakeholders and scope

Somaliland Sun reported that Ethiopia acquired a 19% stake in the project, announced on 1 March, though the year is not specified. Ethiopia is required to construct the Berbera Corridor, a $300 million road linking the port to Addis Ababa. The report states that 95% of Ethiopia's imports and exports currently flow through Djibouti.

Somaliland holds a 30% stake in the project, according to the report. The port is already a crucial source of revenue and employment, and the government hopes the plan to modernise Berbera Port and create an economic free zone will bring jobs.

The report describes the expansion would add a new 400m quay and 250,000 m2 yard extension, using conditional language. It does not confirm that construction has begun or that capacity has been achieved.

## Regional tensions and allegations

Somaliland Sun reported that Somaliland's President Muse Bihi Abdi has strengthened relations with the UAE and recently visited Abu Dhabi. In April, the UAE Ministry of Interior added a category to its visa form for "The Republic of Somaliland", though the year is not specified.

The report also notes allegations that ruling officials accepted bribes to authorise the project, and warnings that rivalry over land ownership in Berbera could lead to disputes. It does not provide details on the sources of these allegations.

Somalia's foreign minister again urged DP World to "reconsider" last week, according to the report, but the minister is not named.

## What the report does not establish

Somaliland Sun's 3 May 2018 article is a snapshot of the deal and its political context at that time. It does not establish whether DP World began the project later in 2018, whether construction has progressed, or whether the ban had any practical effect. The report does not provide a breakdown of the $442 million figure, confirm the exact date of Ethiopia's stake announcement, or state the current status of the Berbera Corridor road.

## Questions

### What are the geopolitical implications of the Berbera port deal?

Somaliland Sun reported that the deal has strained relations between Somaliland and Somalia's federal government, which banned DP World and invalidated the agreement. Ethiopia's 19% stake could shift trade away from Djibouti, but the report does not establish any changes after 3 May 2018.

### What are the potential economic benefits for the region?

The report states that the port is already a source of revenue and employment, and the expansion would add a 400m quay and 250,000 m2 yard. Somaliland holds a 30% stake and hopes for jobs, but the report does not provide figures or confirm any benefits have materialised.

## Sources

- [Somaliland:How an unrecognised state’s port deal could shift dynamics across the Horn](https://somalilandsun.com/somalilandhow-an-unrecognised-states-port-deal-could-shift-dynamics-across-the-horn/) — Somaliland Sun, 2018-05-03