Mogadishu (PP News Desk) — DP World, a company owned by the government of the United Arab Emirates, is endeavouring to improve its relations with the Federal Government of Somalia. In 2017, DP World signed concession agreements with two Somali sub-national entities, the Somaliland Administration and Puntland State, to manage Berbera Port and Boosaaso Port respectively.
DP World has also been in dispute with the Djibouti government over an alleged “breach of contract” regarding the management of Doraleh Port. An arbitration court in the United Kingdom ruled against Djibouti in the matter.
Djibouti, a troop-contributing country to AMISOM and a key actor in Somalia’s state-building process, is closely monitoring unpublicised talks between Somalia and the UAE. The Federal Government of Somalia wants DP World to agree on modalities in several agreements, requiring the UAE to respect Somalia’s sovereignty, particularly concerning key national infrastructure currently controlled by sub-national entities.
The debt relief secured by Somalia in 2023 obliges both the Federal Government and the Federal Member States to adhere to strict fiscal rules to avoid a return to unsustainable debt. Budgetary support for sub-national entities must follow financial disclosure requirements. A delegation from the UAE government that visited Mogadishu last year agreed in principle to transparent disclosure of any investments in Somali ports. The aim is to prevent “double-dipping” when third-party investments in national infrastructure are not disclosed to the Financial Governance Committee, an official familiar with the matter told Puntland Post.
DP World is withholding planned investments in Somali ports under its management until the details of the concession agreements are finalised jointly with the Federal Government of Somalia. Clifford Chance, a British law firm, is advising Somalia on regulatory matters.
The UAE government has managed to defuse tensions over concession agreements with Puntland State and the Somaliland Administration for Boosaaso and Berbera ports respectively. “DP World has a lot to lose if Somalia accuses the parastatal of infringing Somalia’s sovereignty. It signed concession agreements without the imprimatur of the Federal Government of Somalia. That is why its infrastructure investments in Somalia have turned out to be white elephants,” said a lawyer in Boosaaso. Last year, Abu Dhabi Ports, another UAE state-owned enterprise, signed a Memorandum of Understanding with Somalia’s Federal Ministry of Fisheries and Blue Economy.
© Puntland Post, 2025