Arabic Holding Company has signed an agreement with the Southwest State of Somalia to develop and operate the Barawe Seaport and extract natural resources for up to 25 years, in addition to 5 years allocated for preparation, construction, and development.

This took place in the presence of senior officials from the Southwest State of Somalia and the Egyptian company MYD, which will carry out the implementation. Leading the delegation were CEO Major General Ayman Badi, President of the Southwest State of Somalia Abdulaziz Hassan Mohamed, Minister of Ports Mohamed Osman Haji, and Minister of Development and Fisheries Mohamed Ibrahim Nour.

On this occasion, Vice Chairman and CEO of Arabic Digital Holding, Fahad Nawaf Al-Dosari, said the agreement authorizes the company to undertake various activities including attracting bids and signing contracts and agreements for oil exploration in the region.

Al-Dosari revealed in a press statement that the investment under the agreement signed between Arabic Holding and the Southwest State of Somalia amounts to $500 million, including arrangements to collaborate with numerous Arab and Gulf financial, funding, and banking institutions to establish strategic partnerships to develop this resource-rich region.

He added, “The agreement signed between (Arabic) and the Southwest State of Somalia includes oil and gas exploration through major specialized companies in this field,” noting that the company is open to collaboration and partnerships with Kuwaiti, regional, and global companies to execute the project's stages in the upcoming phase.

He explained that the agreement grants Arabic Holding the rights to construct, develop, own, operate, and manage the port and any related infrastructure or facilities without interference or restriction, pointing out that it includes warehouses, logistics service centers, and free zones in addition to any facilities supporting the targeted development plans.

Strategic Phase

Al-Dosari expects the project to enter the operational phase four years from the signing date, which was recently disclosed by the relevant government in the Southwest State of Somalia. He pointed out that “Arabic” is set for a strategic shift and transformation in its financial position and expected revenues from the project in the future.

According to studies approved by major consulting firms, Al-Dosari explained that the anticipated port in that region is expected to generate revenues ranging between $150 and $250 million in its first year of operation, noting that the port project includes a duty-free market, hotels, a service area, and a large dock for ship repair.

Serving Several Countries

He pointed out that the project lies on the international corridor, and is expected to serve several countries and markets in the region including Ethiopia, South Sudan, northeastern Kenya, Central Africa, Uganda, and northern Democratic Republic of the Congo.

Al-Dosari said the project covers an area of up to 200 square kilometers, noting that work will begin in the coming months. He referenced the agreement with Egyptian company MYD to officially launch operations as the main contractor and executor of the project after finalizing the necessary work arrangements.

Industrial Zone

And Rich Resources

Al-Dosari stated in the press release that the project includes a modern industrial zone that will leverage its rich mineral resources in a way that positively reflects on the company and all related parties. The project land includes a free zone to support commercial and industrial activities comprising the port (containers + cargo), logistics area, livestock (slaughterhouse – meat processing – export center), agriculture and agro-industry (processing – storage facilities – packaging lines), fishing and marine life processing (processing – cold storage – aquaculture), residential and tourism (housing units – hotels – recreational facilities), industrial hub (light manufacturing – construction and building materials – food and beverages – electronics and more), (administrative, health, commercial services, and utility stations), solar energy (continuous generation of 365 MW), and free trade zone (warehouses – logistics services – commercial services).

Main Objectives

Al-Dosari confirmed that the main goals of this massive project include opening opportunities for Kuwaiti companies to seize potential investments, with a focus on improving Somalia’s maritime infrastructure and enhancing its capacity to handle international trade, creating jobs in shipping, industry, and logistics sectors, attracting foreign investments through establishing free zones, and utilizing the mineral resources in Southwest Somalia to develop related industries. It also aims to enhance regional cooperation between the Middle East and Africa in infrastructure projects and oil and gas exploration, with oil reserves estimated at 30 billion barrels and significant natural gas reserves.