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Saudi Arabia and Djibouti strengthen trade ties with key agreements

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Riyadh hosts 6th Saudi Djibouti Trade Ties Joint Committee Session to boost trade, logistics, and investment collaboration

Saudi Arabia and Djibouti have taken a significant step toward enhancing their economic partnership, with the sixth session of the Saudi-Djibouti Joint Committee concluding in Riyadh on 18 November. The meeting, which focused on bolstering logistical, trade, and investment ties, reflects the growing collaboration between the two nations as they work towards shared development goals.

The session was co-chaired by Saudi Arabia’s Minister of Transport and Logistic Services, Saleh Al-Jasser, and Djibouti’s Minister for Foreign Affairs and International Cooperation, Mahamoud Ali Youssouf. The discussions centred on expanding economic cooperation across key sectors, particularly in logistics, which is seen as a cornerstone for regional connectivity and sustainable growth.

In his opening remarks, Al-Jasser lauded the deep-rooted ties between Saudi Arabia and Djibouti, emphasising the substantial progress achieved so far. “The discussions today mark another milestone in our journey to strengthen trade and investment across vital sectors. The figures from 2023 speak volumes about our partnership’s potential,” he noted.

Trade on the Rise

Saudi Djibouti trade ties have strengthened significantly, with bilateral trade reaching approximately SR7 billion ($1.86 billion) in 2023. This growth highlights a strong foundation for enhanced cooperation as both nations capitalize on their geographic and economic strengths

The committee’s previous sessions laid much of the groundwork for this expansion. Efforts to streamline trade processes and enhance infrastructure have contributed to a steady increase in economic activity between Saudi Arabia and Djibouti.

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Maritime Connections and Regional Impact

Earlier this year, in August, the two nations announced a maritime initiative aimed at improving trade connectivity with East African markets. The initiative includes the development of new shipping lines to strengthen links between Saudi Arabia and a consumer base of 500 million people across the region.

A critical component of this partnership is the Saudi Logistics City, a transformative project planned for Djibouti’s Free Zone. This facility formalised in a contract signed in June, is designed to facilitate the export of Saudi products to East Africa. Covering an initial area of 120,000 square metres, the project is part of a 92-year agreement, signalling long-term commitment and collaboration between the two nations.

The Saudi Logistics City is expected to serve as a hub for regional trade, boosting economic growth and creating opportunities for businesses in both countries. It will enhance Djibouti’s strategic position as a gateway to East Africa while supporting Saudi Arabia’s Vision 2030 goal of diversifying its economy and becoming a global logistics leader.

Strengthening Strategic Partnerships

During the session, both ministers underscored the importance of fostering robust partnerships in other sectors, including energy, infrastructure, and technology. These initiatives are expected to drive investment and create new opportunities for bilateral cooperation.

“The strong ties between our nations are built on a shared vision for sustainable development and economic growth,” Youssouf remarked. “The agreements we have formalised today are a testament to the trust and collaboration we continue to build.”

A Promising Future

As Saudi Arabia and Djibouti continue to work closely, their efforts are set to have a lasting impact on the region’s economy. Enhanced trade and logistics connectivity will benefit not just the two countries but also their neighbours, fostering regional integration and economic prosperity.

The sixth session of the joint committee concluded with a reaffirmation of both nations’ commitment to achieving their shared goals. By focusing on long-term initiatives such as the Saudi Logistics City and maritime connectivity projects, Saudi Arabia and Djibouti are positioning themselves as key players in East Africa’s economic landscape.

With trade figures climbing and strategic investments on the horizon, the partnership between Saudi Arabia and Djibouti is entering a new era of growth and opportunity.

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