Arabic Digital Holding Company has signed an agreement with the State of Southwest Somalia to develop and operate Barawi Port and extract natural resources for a period of up to 25 years, in addition to 5 years for preparations, construction, and development.

This was done in the presence of high-ranking officials from the State of Southwest Somalia and from the Egyptian company MYD, which will undertake the execution, including CEO Major General Ayman Badi, the President of Southwest Somalia Abdulaziz Hassan Mohammed, the Minister of Ports Mohamed Osman Hajji, and the Minister of Development and Fisheries Mohamed Ibrahim Noor.

On this occasion, Fadh Nawal Al-Dosari, Deputy Chairman and CEO of Arabic Digital Holding Company, stated that the agreement allows the company to engage in a variety of activities through attracting bids and entering into contracts and agreements for oil exploration in the region.

Al-Dosari revealed in a press statement by the company that the investment size under the agreement between Arabic Digital Holding Company and the State of Southwest Somalia amounts to $500 million, which includes making the necessary arrangements to collaborate with various Arab and Gulf financial, funding, and banking institutions to establish strategic partnerships for the development of this resource-rich region.

He added, “The signed agreement between Arabic and the State of Southwest Somalia includes oil and gas exploration through major specialized companies in the field,” noting that the company is open to cooperating and forming partnerships with Kuwaiti, regional, and international companies to implement the project's phases in the next stage.

He explained that the agreement grants Arabic Holding the authority for construction, development, ownership, operation, and management of the port and any related supporting infrastructure without any interference or restrictions, pointing out that it includes warehouses, logistical service centers, and free zones, as well as any facilities that support the targeted development plans.

Al-Dosari expects the project to commence operations 4 years from the date of the recent signing, as disclosed by the competent government of the State of Southwest Somalia, indicating that Arabic will be poised for a strategic phase and a qualitative leap in its financial standing and the expected revenue from the project in the future.

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

He pointed out that the project is located on the international corridor, and it 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 Congo.

Al-Dosari stated that the project occupies an area of up to 200 square kilometers and that work is set to begin within the next few months, specifically indicating the agreement with the Egyptian company MYD to officially initiate work as the main contractor and implementer of the project, following the completion of the final arrangements.

Industrial Zone and Rich Resources

Al-Dosari noted in the statement that the project includes a modern industrial zone that will utilize its rich mineral resources positively impacting the company and all relevant parties. The project land encompasses a free zone to support commercial and industrial activities, comprising the port (containers + goods), the logistics area, livestock (slaughterhouse - meat processing - export center), agriculture and agricultural industries (processing - storage facilities - packaging lines), fishing and aquaculture production (processing - cold storage - aquaculture breeding), residential and tourism (housing units - hotels - recreational facilities), and the industrial center (light manufacturing - construction materials - food and beverages - electronics, etc.) (administrative, health, and commercial services and utilities) and solar energy (continuous generation of 365 megawatts) along with a free trade zone (warehouses - logistical services - commercial services).

Main Objectives

Al-Dosari affirmed that the primary objectives of this project include opening new opportunities for Kuwaiti companies, emphasizing the importance of improving maritime infrastructure in Somalia and enhancing its capacity to accommodate international trade, creating job opportunities in shipping, industry, and logistics, and attracting foreign investments through establishing free zones. The project also focuses on utilizing the mineral resources in Southwest Somalia and developing related industries and enhancing regional cooperation between the Middle East and Africa through infrastructure projects and oil and gas exploration operations, where oil reserves amount to 30 billion barrels and significant natural gas reserves.