In brief
- On 7 November 2017, DP World said it will build an economic free zone in Somaliland, as reported by Horn Diplomat.
- The zone is to be modelled on Dubai's Jebel Ali Free Zone and developed in phases, with the first phase covering 4 sq km.
- Capital requirements and phase details are to be announced after approval by Somaliland's new government following elections on 13 November.
On 7 November 2017, DP World said it will build an economic free zone in Somaliland, according to a report by Horn Diplomat.
The Dubai-based ports operator said the new zone would capitalise on strong growth at the Port of Berbera, which it has been managing since May 2016 under a 30-year concession agreement signed with the Somaliland government. In September 2017, DP World said in a statement that the port recorded a 40 per cent year-on-year increase in container volumes, the highest total volumes in the port's history.
The Berbera Free Zone is to be modelled on Dubai's Jebel Ali Free Zone (Jafza), the Middle East region's biggest free zone. DP World said the zone aims to position Berbera as a gateway port for east Africa by encouraging investment and trade in warehousing, logistics, manufacturing and related businesses.
DP World will develop the free zone in phases, with the first phase focusing on 4 sq km of land, according to the terms of a deal signed that week between Somaliland's foreign affairs minister Saad Shire and DP World group chairman and chief executive Sultan bin Sulayem. The exact signing date was not specified.
The capital required from DP World to develop the zone and details about the phases will be announced after the project gets approved by Somaliland's new government following elections on 13 November, DP World said. The company added that each phase would start once the previous one has achieved 85 per cent occupancy.
Sultan bin Sulayem said Somaliland's development opportunities have parallels with the start of Dubai's growth and that the vision is to make Berbera a trading and transportation hub for the Horn of Africa.
DP World has begun implementing a masterplan for the Port of Berbera, including an additional 400-metre container terminal, upgrades to existing facilities and new equipment, Horn Diplomat reported.
The report does not establish what has happened since the 2017 announcement. No evidence is provided of subsequent development, construction, or operational milestones for the Berbera Free Zone, and no capital figure or currency is disclosed. No details of phases beyond the first phase area of 4 sq km are given. The article is sourced from The National.
Frequently asked questions
What is the planned scale and function of the Berbera Free Zone?
The zone is to be developed in phases, with the first phase focusing on 4 sq km of land. It aims to position Berbera as a gateway port for east Africa by encouraging investment and trade in warehousing, logistics, manufacturing and related businesses.
What is the relationship to the Berbera port development?
DP World has been managing the Port of Berbera since May 2016 under a 30-year concession. The free zone is intended to capitalise on growth at the port, and DP World has begun implementing a port masterplan including an additional 400-metre container terminal and equipment upgrades.
What are the economic and regulatory implications?
Capital requirements and phase details are to be announced after approval by Somaliland's new government following elections on 13 November. Each phase would start once the previous one has achieved 85 per cent occupancy.