DP World has signed a final agreement with the Government of Dubai enabling it to develop an economic free zone at the Port of Berbera in Somaliland.
“The free zone will encourage growth for the region’s economy,” said DP World Group Chairman, Sultan Ahmed Bin Sulayem.
“It’s a boost for local prosperity and is going to create many jobs. We look forward to bringing our global experience here and help develop the area.”
Free Zones (FZ) are designate areas in which companies are taxed very lightly or not at all to encourage economic activity.
The global trade enabler expects to break ground on the 12 square kilometre project later this year. Located right next to the port, it will support the development of Berbera as a trading hub and generate jobs.
Modelled on DP World’s Jebel Ali Free Zone in Dubai, the project targets a range of businesses including warehousing, logistics, traders and manufacturers.
The first phase of construction is focused on a 4 square kilometre stretch of land. Future phases will be detailed in a concept plan together with projected capital investment required from DP World. Construction of each new phase will start once the previous has achieved 85% occupancy.
The Jebel Ali Free Zone, also known as Jafza, commenced operations in 1985 with office units and warehouses available for lease.
It hosts more than 7,000 global companies and includes approximately 100 of the Fortune 500 organisations. The free zone contributes 21 per cent of Dubai’s GDP on a yearly basis and it employs more than 144,000 people. In 2015, Jafza generated $87.6 billion worth of trade.
Source: East African Business