DP World invests in Somaliland: Why the UAE-owned Shipping Company is Investing in Somaliland

Section 1: DP World makes an investment in Somaliland 

DP World is making an initial investment of US$42 million into building and equipping the initial phases of Berbera Port, which include an additional berth, terminal, container yard and rail link. The operations of the port is expected to commence by the end of 2020. 

The port will support economic growth in Somaliland, which currently has an average growth rate of 3.6 per cent and is a key gateway between Kenya and the rest of the world. Mr. Mohamed Ali said "Today we break down the bureaucratic barriers to create a stronger and more sustainable international trading hub in the region. 

"This is part of DP World's global strategy to invest in strategic trade hubs. 

Why did DP World decide to invest in Somaliland? 

Mr bin Sulayem answered, "We've looked at a number of ports in East Africa, and Somaliland has been our first port call in East Africa. The reasons for the investment are multifold, including the solid investment climate and the support we have received from the government and investors in Somaliland, both local and international. We are very pleased with the progress we've made so far." 

The development of the port of Berbera was launched in 2003 and since then DP World has invested approximately $500 million, which included construction of the quay wall, berths and the container terminal. The first phase of the port was inaugurated in January 2017 and was accompanied by some of the most significant investment and economic activity to date. 

Who benefits from the investments? 

As with most developments, potential investors and government officials were asked to take part in an 'investment and development plan' to find out. After being asked to weigh in on a number of questions, the forum participants were asked what benefits they thought the investments would bring. 

It is difficult to find a representative with an answer on the forum's website, which lists some of the questions but provides no indication as to the responses from the companies or the investors. 

What are the advantages and disadvantages of investing in Somalia? 

A number of the investors were more concerned about what would happen if a man-made disaster did occur to the facilities, citing a near-collapse in 2011 when the vessels docking were destroyed. 

What are the likely long-term implications of this investment? 

In addition to the strong support of the Somaliland government, one of the most crucial parts of this project will be the dedicated and continuous training of Somaliland locals to operate and maintain the new port. This will increase the local capacity of the region, meaning that once fully operational, Somalilanders will play a key role in running the port on a sustainable basis. 

Somaliland's long-term ambitions 

Somaliland is yet another example of Somaliland's increasingly positive economic fortunes, and the region will soon have even more opportunities for further growth. The only frontier on earth left undeveloped is the Horn of Africa, which is one of the poorest regions in the world. 

Conclusion 

Hudhayfah Al Nahyan, Executive Director and Chief Executive Officer of Al Nahyan Foundation, said: "We have a clear vision of support to those individuals who are fighting for a decent life and future, and believe in the importance of developing sustainable philanthropic partnerships with local organisations and civil society to enable them to realise their full potential. 

"The HNF is one of the UAE's foremost philanthropic foundations, and its work aims to promote education and training for the youth of the Arab and Islamic world, to alleviate the suffering of people in areas of poverty and health.