https://arab.news/89qkh
RIYADH: Saudi Arabia and Djibouti are forging a significant new maritime initiative aimed at strengthening trade connections and boosting economic ties between the two countries.
The heart of this collaboration is the establishment of shipping lines designed to enhance trade connectivity with East African markets, encompassing a consumer base of approximately 500 million people, the Saudi Press Agency reported.
The centerpiece of this partnership is the Saudi Logistics City, which will be developed within the Djibouti Free Zone. This ambitious project, formalized through a contract signed in June, represents a strategic effort to facilitate the export of Saudi products and bolster economic relations.
The agreement, which involves a 92-year contract beginning with 120,000 sq. meters, is expected to have a transformative impact on both nations’ economic landscapes.
To support this initiative, a workshop titled “Activating Maritime Routes Between Jazan City and Djibouti Republic” was organized on Aug. 7.
The event, organized by the Federation of Saudi Chambers, the Jazan Chamber of Commerce, and the Ministry of Transport and Logistic Services, was attended by Jazan Chamber Chairman Ahmed Abu Hadi and various stakeholders.
The workshop aimed to address the challenges faced by Saudi investors in accessing the Horn of Africa, explore investment opportunities, and discuss available incentives.
The Jazan City for Basic and Downstream Industries was highlighted as a crucial export platform, handling 13 percent of global trade.
Hutchison Port, the operator of the Jazan Port, provided insights into the services and solutions available through its facilities, including container handling, warehousing, customs clearance, and transport.
In addition to economic developments, Djibouti’s President Ismail Omar Guelleh has reaffirmed his country’s commitment to maritime security in the Red Sea. Djibouti is collaborating closely with Saudi Arabia to ensure safe navigation through key strategic waterways, including the Bab El-Mandeb Strait and the Gulf of Aden.
This partnership marks a major advancement in the economic relationship between Saudi Arabia and Djibouti, leveraging both countries’ strategic locations and infrastructure to enhance trade and investment opportunities.
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