UAE Investment in Berbera and Bosaso Ports: A Catalyst for Economic Growth and Job Creation in Somalia

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The United Arab Emirates (UAE), through Dubai’s DP World, has made significant investments in the development of ports in Somalia, particularly in Berbera and Bosaso. Despite political tensions surrounding the independence aspirations of Somaliland, these investments have proven to be effective, driving economic growth and creating job opportunities in the region.

This article explores the impact of UAE investment in the Berbera and Bosaso ports, shedding light on their role as engines for economic development in Somalia.

Berbera Port: A Gateway to Africa and Europe

In 2018, DP World initiated a $440 million investment in the development of Berbera Port, defying political challenges from the Somali government regarding Somaliland’s bid for independence. Despite these hurdles, the investment has yielded significant results.

Thousands of Somalis are now employed at the port, benefitting from job opportunities created by its expansion and modernization. Berbera alone has a population of over 600,000 and more than 300,000 living nearby towns and villages.

The strategic significance of the Port of Berbera lies in its potential to become a key link between Africa and Europe. Improved connectivity and efficiency at the port have attracted foreign direct investment, leading to infrastructure development and overall economic growth in the region.

By facilitating trade, the port promotes regional integration, fosters closer economic ties, and diversifies transport options, thereby increasing the resilience of supply chains and contributing to global trade stability.

Bosaso Port: Fostering Economic Boom in Puntland

In 2022, DP World signed an agreement with the Government of Puntland for the expansion and upgrade of Bosaso Port, another vital infrastructure in Somalia. The project, completed in 2023, included the development of quays and container yards, enhancing the port’s capacity to handle container vessels and attract more direct calls from regional hubs.

The transformation of Bosaso Port has catalyzed economic growth in Puntland, particularly in the city of Bosaso.

With close to a million residents, Bosaso is experiencing a booming business environment, generating revenue for the government and its people. The port expansion has created over 2,000 new jobs, stimulating the establishment of new shops and restaurants in the vicinity.

PHOTO: Garacad Seaport, a Somali-owned project.

Garacad Port: A Potential Game-Changer for Somalia

Building on the success of Berbera and Bosaso, Puntland is now focused on operationalizing Garacad Port, a new project funded by the government and local business community.

Once operational, Garacad is expected to further boost the economy of Puntland and surrounding regions, including Galmudug and SSC-Khaatumo, as well as Hiiraan and Middle Shabelle regions.

However, the realization of Garacad’s potential hinges on collaboration between Puntland, Somaliland, Galmudug, and SSC-Khaatumo to ensure safe routes for goods and the construction of new roads. Despite security challenges posed by terrorist groups in central and southern Somalia, the development of reliable sea ports offers a glimmer of hope for economic prosperity in the region.

The UAE’s investment in Berbera and Bosaso ports has been instrumental in driving economic growth and job creation in Somalia. These ports serve as vital gateways for trade, promoting regional integration and diversifying transport options.

As Somalia continues to navigate political complexities and security challenges, the development of ports like Berbera, Bosaso, and Garacad offers a beacon of hope for sustainable economic development and prosperity in the region.

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