Large-scale investment initiatives in the tiny country in the Horn of Africa are increasing Saudi Arabia’s footprint there.
The Saudi Ajyal Petroleum and Energy Company laid a cornerstone for the $12.7 billion refinery project in Djibouti Damerjog International Park (DDIP), south of the country’s capital, earlier this week with the presence of Abdoulkader Kamil Mohamed, the Prime Minister of Djibouti.
An agreement to create Saudi Logistics City in the Djibouti port free zone was reached earlier this month by a group of Saudi businessmen.
In Djibouti, a new refinery project of 300 hectares will be established at the Damarjog logistics region. It has a capacity of 300,000 barrels per day.
Aldossary Group, a Saudi business with investments in a number of industries, is the parent firm of Ajyal Petroleum and Energy firm.
The project’s principal consultant is Anaplasi Consulting Engineers SA, which is situated in Athens, Greece.
Refinery plants, according to Djibouti Port and Free Zones Authority, would greatly strengthen the local economy by promoting skill development and creating jobs in the nation.
It is projected that the refinery project would generate about 10,000 direct employment.
After the Assab refinery, which began operations in 1967 under the reign of Emperor Hailesilassie and has been suspended since 1997 by the newly independent Eritrean government, the refinery will be the second in the region.
DDIP is set to play a pivotal role in our economic growth and industrial expansion at both the regional and continental levels through the African Continental Free Trade Area.
In the coming years, the DDIP for heavy industry is projected to expand significantly in the sectors of energy, steel, cement, livestock, and LNG.
Using Djibouti port’s strategic location as an entry point into Africa and a major hub for trade and business dealings on the continent as well as internationally, the Saudi Logistics City seeks to act as a hub for importing Saudi goods and exporting them to the African continent.
The logistics free zone would occupy 120,000 square meters in its initial phase.
The logistics city’s operations are covered under the 92-year lease. This city will provide a platform for Saudi enterprises, an ongoing exposition, and a commercial exchange area complete with warehouses and other amenities.
