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Djibouti's president IOG this week cancelled Dp world doraleh port contract illegally because he got afraid of somaliland becoming serious completion and putting a end to djiboutis monolpoly.Sources told Al Jazeera that the souring of relations between the two parties goes back to when Djibouti refused to allow the UAE to establish a military base on its territory.
For the UAE, Djibouti's location is ideal, along the Red Sea and close to Yemen's Aden, one of the region's most important ports.
Somaliland connection
Sources tell Al Jazeera that matters took a turn for the worse when the UAE was seen as trying to undercut Djibouti's competitiveness by offering Ethiopia to use a facility in Somaliland at attractive rates.
DP World announced in November last year it would build an economic free zone in Somaliland to capitalise on strong growth at the Port of Berbera, which was already under the company's management.
DP World signed a 30-year concession agreement to manage the Port of Berbera in May 2016.
Announcing the DCT nationalisation decision on Thursday, Djibouti's transport ministry said that it was merely implementing a law adopted in November last year that "sets a legal framework allowing for the renegotiation, if necessary, of contracts already concluded dealing with the management or exploitation of strategic infrastructure.
http://www.aljazeera.com/amp/news/2...80223200900708.html?__twitter_impression=true
The UAE was refused military base in djibouti so it went to somaliland , same region for the fraction of the cost. UAE had enough of djibouti's monopoly so went to berbera port to break the monopoly by creating competition and got Ethiopia to sign a MOU to send 40%of its cargo through there when compelete, a major problem for djibouti gov as there economy is not diversified and relies on the decades long monopoly of its port and military bases .
Iog panicked and cancelled the Dp world contract a win for somaliland as now UAE will do everything to make berbera port overtake or do as much damage to djibouti port by getting Ethiopia (djibouti main customer )to increase it quota to berbera port , Ethiopia would be happy to this eventually as its beneficial for them as berbera will be cheaper shipping , berbera port is closer to Ethiopia and Ethiopia owns 19% stake in berbera port his gives somaliland a extra playing card .
@Saahid Qamaan IOG thought he could keep the monopoly on ports &bases in the Horn of Africa without diversifying his economy, but he was wrong. this is the real reason why IoG dictator cancelled DP world , the dictators tricks backfired as is going to be great for somaliland .
Nacala kugu yaal Ismail Omar , may he be gone soon for bringing dictatorship to djibouti and economic boycott for neighbouring Somalis . Djibouti needs young fresh leadership all djiboutians are sick of IOG like my brothers @amboli @Kingcobra
#TheMonopolyIsOver
Somaliland power