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Saudi Arabia and Djibouti Launch Strategic Maritime Initiative to Enhance Trade Links

Saudi Arabia and Djibouti have launched a significant maritime initiative to strengthen trade connections and boost economic ties between the two nations. At the core of this collaboration is the establishment of new shipping lines, aimed at enhancing trade connectivity with East African markets, which encompass a consumer base of approximately 500 million people, according to the Saudi Press Agency. 

A key component of this partnership is the development of the Saudi Logistics City 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 strengthen economic relations between the two countries. The agreement, which spans a 92-year contract beginning with 120,000 square meters, is anticipated to have a transformative impact on the economic landscapes of both nations. 

To further support this initiative, a workshop titled “Activating Maritime Routes Between Jazan City and Djibouti Republic” was held on August 7. Organized by the Federation of Saudi Chambers, the Jazan Chamber of Commerce, and the Ministry of Transport and Logistic Services, the workshop addressed challenges faced by Saudi investors in accessing the Horn of Africa, explored investment opportunities, and discussed available incentives. The event was attended by key stakeholders, including Jazan Chamber Chairman Ahmed Abu Hadi. 

Jazan City for Basic and Downstream Industries was highlighted as a critical export platform, currently handling 13 percent of global trade. Hutchison Port, the operator of Jazan Port, provided insights into the services and solutions available through its facilities, including container handling, warehousing, customs clearance, and transportation. 

In addition to these economic developments, Djibouti’s President Ismail Omar Guelleh 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 represents 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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