How Djibouti emerged as a commercial and strategic crossroads of the world

Djibouti’s location, on the Bab Al-Mandab strait and at the intersection of the Red Sea and the Gulf of Aden, has proved a blessing in countless ways. (AFP)
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Updated 16 September 2022
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How Djibouti emerged as a commercial and strategic crossroads of the world

  • Tiny African nation’s Red Sea ports service trans-shipments between Europe, the Middle East and Asia
  • Location and relative stability enabling Djibouti to become the linchpin of global maritime commerce

RIYADH: If geography is destiny, then all small countries with much bigger neighbors perforce have to learn to capitalize on the advantages while handling the challenges with tact and finesse.

Few countries come close to Djibouti, a tiny African nation squeezed between Eritrea, Ethiopia, and Somalia, in pulling off this feat.

Djibouti’s location, on the Bab Al-Mandab strait and at the intersection of the Red Sea and the Gulf of Aden, has proved a blessing in countless ways. Its ports serve as the main gateway for trade for landlocked Ethiopia, handling 95 percent of the country’s trade. As a gateway to the Suez Canal, one of the world’s busiest shipping routes, Djibouti’s ports also service trans-shipments between Europe, the Middle East, and Asia.

Relative political stability and strategic location have also made Djibouti an ideal site for foreign military bases, which in turn has ensured a steady flow of government revenue and foreign assistance. The government holds longstanding ties to France, which maintains a military presence in the country, as does the US, Japan, Italy, Germany, Spain, and China.




Tourism is also one of the growing economic sectors of Djibouti and is an industry that generates between 53,000 and 73,000 arrivals per year. (Shutterstock)

Radical Islam, which has caused havoc in neighboring Somalia among other African countries, has not been able to make inroads into Djibouti, a predominantly Muslim country with a smattering of other faiths.

During a visit in March, Ferid Belhaj, the World Bank’s vice president for the Middle East and North Africa, reaffirmed the bank’s commitment to Djibouti’s “resilient and inclusive recovery from COVID-19 and its efforts to accelerate more and better investments in people.”


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Djibouti president stresses importance of preserving peace in ‘sensitive’ Red Sea and Gulf of Aden region


According to the African Development Bank Group’s “Djibouti Economic Outlook” report, the economy began to recover in 2021 with gross domestic product growth of 3.9 percent, up from 1.2 percent in 2020. The pickup was supported by a revitalized services sector, which generates about three-fourths of GDP, port activities in particular.




Djibouti’s ports also service trans-shipments between Europe, the Middle East, and Asia. (AFP)

The group report said: “The outlook is positive. Average GDP growth over 2022 to 23 is forecast to reach 4.3 percent and remain supported by port and investment activities.”

In recent decades, Djibouti has invested heavily in building new ports and modernizing existing infrastructure. Work is ongoing on new facilities including a liquefied natural gas terminal, a business zone, ship repair yards, a crude oil terminal, an international airport, and railway lines connecting Tadjourah, Mekele, and the capital Addis Ababa with the Port of Djibouti.

Every day, an estimated 2,500 ships pass through and call through the port, with hopes pinned on it to turn Djibouti into the linchpin of global maritime commerce. As recently as Tuesday, a UN-chartered ship loaded with thousands of tons of Ukrainian wheat arrived in Djibouti, destined for some of the 22 million people at risk of starvation in the Horn of Africa.

Tourism is also one of the growing economic sectors of Djibouti and is an industry that generates between 53,000 and 73,000 arrivals per year. Besides historical sites, a national park, beaches, and mountain ranges, the country’s attractions include rock-art sites in Abourma, islands and beaches in the Gulf of Tadjoura and the Bab Al-Mandab, scuba diving, fishing, trekking, and hiking.

The right to own property is respected in Djibouti and the government has reorganized the labor unions. There are an estimated 15,000 foreigners residing in the country.

The indigenous population is divided between the majority Somalis (predominantly of the Issa tribe, with minority Isaaq and Gadabuursi representation) and the Afars (also known as the Danakils).

Djibouti is a member state of the Organization of Islamic Cooperation and Arab League. It strongly supports mediation efforts in the war in Ethiopia and promotes vaccination against COVID-19.

The history of Djibouti, recorded in the poetry and songs of its nomadic peoples, goes back thousands of years to a time when Djiboutians traded hides and skins for the perfumes and spices of ancient Egypt, India, and China. Through close contacts with the Arabian Peninsula for more than 1,000 years, the Somali and Afar tribes in the region became the first on the African continent to adopt Islam.

Trader and diplomat Rochet d’Hericourt’s exploration into Shoa (1839 to 1842) marked the beginning of French interest in the African shores of the Red Sea, an interest that grew in step with increased British activity in Egypt and the opening of the Suez Canal in 1869. In 1884 and 1885, France expanded its protectorate to include the shores of the Gulf of Tadjoura and Somaliland.

The administrative capital was moved from Obock to Djibouti in 1896. Djibouti attracted trade caravans crossing East Africa, as well as Somali settlers from the south. The Franco-Ethiopian railway, linking Djibouti to the heart of Ethiopia, was begun in 1897 and reached Addis Ababa in June 1917, further facilitating the increase of trade.




Diplomat Rochet d’Hericourt’s exploration into Shoa (1839 to 1842) marked the beginning of French interest in the African shores of the Red Sea. (AFP)

In 1957, the colony was reorganized by the French government to give the people considerable self-government. The next year, in a constitutional referendum, French Somaliland opted to join the French community as an overseas territory.

In March 1967, in a referendum conducted by the French government, 60 percent chose to continue the territory’s association with France. In July of that year, a directive from Paris formally changed the name of the region to the French Territory of the Afars and Issas.

Djiboutians voted for independence in a May 1977 referendum, and the Republic of Djibouti was established on June 27, 1977. Hassan Gouled Aptidon became the country’s first president and was re-elected multiple times until 1999, when Ismail Omar Guelleh became the new president.


Iran ‘categorically’ denies envoy’s meeting with Musk

Updated 16 November 2024
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Iran ‘categorically’ denies envoy’s meeting with Musk

TEHRAN: Iran’s foreign ministry spokesman on Saturday “categorically” denied The New York Times report on Tehran’s ambassador to the United Nations meeting with US tech billionaire Elon Musk, state media reported.
In an interview with state news agency IRNA, spokesman Esmaeil Baghaei was reported as “categorically denying such a meeting” and expressing “surprise at the coverage of the American media in this regard.”
The Times reported on Friday that Musk, who is a close ally of President-elect Donald Trump, met earlier this week with Iran’s ambassador to the UN, Amir Saeid Iravani.
It cited anonymous Iranian sources describing the encounter as “positive.”
Iranian newspapers, particularly those aligned with the reformist party that supports President Masoud Pezeshkian, largely described the meeting in positive terms before Baghaei’s statement.
In the weeks leading up to Trump’s re-election, Iranian officials have signalled a willingness to resolve issues with the West.
Iran and the United Stated cut diplomatic ties shortly after the 1979 Islamic revolution that toppled the US-backed shah of Iran, Mohammed Reza Pahlavi.
Since then, both countries have communicated through the Swiss embassy in Tehran and the Sultanate of Oman.


Indian private university opens first international campus in Dubai

Updated 16 November 2024
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Indian private university opens first international campus in Dubai

  • Indian FM inaugurated the Dubai campus of Symbiosis International University on Thursday
  • Under national education policy, New Delhi wants to internationalize Indian education system

New Delhi: A private Indian university has opened its first international campus in Dubai this week, marking a growing education cooperation between New Delhi and Abu Dhabi. 

Symbiosis International University is a private higher education institution based in the western Indian city of Pune with at least five other campuses operating across the country, offering undergraduate, postgraduate and doctorate-level programs. 

It is considered one of the top private business schools in the South Asian country, ranking 13th in management in the Indian Ministry of Education’s National Institutional Ranking Framework. 

SIU’s Dubai campus, which will offer management, technology and media and communications courses, was officially inaugurated on Thursday by Indian Foreign Minister S. Jaishankar and Sheikh Nahyan bin Mubarak, the UAE minister of tolerance and coexistence. 

“I am sure that this campus will foster greater collaboration and research linkages between scholars of India and UAE, for mutual prosperity and global good,” Jaishankar said during the ceremony. 

“(The) ceremony is not just an inauguration of a new campus; it is a celebration of the growing educational cooperation between our two countries. Right now, Indian curriculum and learning is being imparted through more than 100 International Indian Schools in UAE, benefitting more than 300,000 students.”

Under India’s National Education Policy 2020, New Delhi aims to internationalize the Indian education system, including by establishing campuses abroad. 

Another top Indian school, the Indian Institute of Technology-Delhi, began its first undergraduate courses in September, after starting its teaching program in January with a master’s course in energy transition and sustainability. 

Initially launched in September with more than 100 students, the SIU Dubai Campus is the first Indian university in Dubai to start operations with full accreditation and licensing from the UAE’s top education authorities, including the Ministry of Education. 

“A university setting up a campus abroad is not just a bold step, but a concrete commitment to the goal of globalizing India. They certainly render an educational service, but even more, connect us to the world by strengthening our living bridges,” Jaishankar added as he addressed the students. 

Dr. Vidya Yeravdekar, pro-chancellor of Symbiosis International University, said that the school’s establishment in Dubai was in line with the UAE’s education goals. 

“Internationalization is central to the UAE’s educational vision,” Yeravdekar said on Friday. 

“By opening our campus in Dubai, we are creating a gateway for students from around the world to engage in a truly global academic experience, where they can benefit from international faculty, real-world industry collaborations, and a curriculum that meets the needs of a changing world.”


Russia captures two villages in eastern Ukraine, defense ministry says, according to agencies

Updated 16 November 2024
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Russia captures two villages in eastern Ukraine, defense ministry says, according to agencies

MOSCOW: Russian forces have captured the villages of Makarivka and Leninskoye in Ukraine’s Donetsk region, Russian news agencies reported on Saturday, citing the Russian Defense Ministry.


UN climate chief asks G20 leaders for boost as finance talks lag

Updated 16 November 2024
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UN climate chief asks G20 leaders for boost as finance talks lag

  • Negotiators at the COP29 conference in Baku struggle in their negotiations for a deal intended to scale up money to address the worsening impacts of global warming

BAKU: The UN’s climate chief called on leaders of the world’s biggest economies on Saturday to send a signal of support for global climate finance efforts when they meet in Rio de Janeiro next week. The plea, made in a letter to G20 leaders from UN Framework Convention on Climate Change Executive Secretary Simon Stiell, comes as negotiators at the COP29 conference in Baku struggle in their negotiations for a deal intended to scale up money to address the worsening impacts of global warming.
“Next week’s summit must send crystal clear global signals,” Stiell said in the letter.
He said the signal should support an increase in grants and loans, along with debt relief, so vulnerable countries “are not hamstrung by debt servicing costs that make bolder climate actions all but impossible.”
Business leaders echoed Stiell’s plea, saying they were concerned about the “lack of progress and focus in Baku.”
“We call on governments, led by the G20, to meet the moment and deliver the policies for an accelerated shift from fossil fuels to a clean energy future, to unlock the essential private sector investment needed,” said a coalition of business groups, including the We Mean Business Coalition, United Nations Global Compact and the Brazilian Council for Sustainable Development, in a separate letter.
Success at this year’s UN climate summit hinges on whether countries can agree on a new finance target for richer countries, development lenders and the private sector to deliver each year. Developing countries need at least $1 trillion annually by the end of the decade to cope with climate change, economists told the UN talks.
But negotiators have made slow progress midway through the two-week conference. A draft text of the deal, which earlier this week was 33-pages long and comprised of dozens of wide-ranging options, had been pared down to 25 pages as of Saturday.
Sweden’s climate envoy, Mattias Frumerie, said the finance negotiations had not yet cracked the toughest issues: how big the target should be, or which countries should pay.
“The divisions we saw coming into the meeting are still there, which leaves quite a lot of work for ministers next week,” he said.
European negotiators have said large oil-producing nations including Saudi Arabia are also blocking discussions on how to take forward last year’s COP28 summit deal to transition the world away from fossil fuels.
Saudi Arabia’s government did not immediately respond to a request for comment. Progress on this issue has been dire so far, one European negotiator said.
Uganda’s energy minister, Ruth Nankabirwa, said her country’s priority was to leave COP29 with a deal on affordable financing for clean energy projects.
“When you look around and you don’t have the money, then we keep wondering whether we will ever walk the journey of a real energy transition,” she said.


Protesters’ biggest day expected at UN climate talks, where progress is slow

Updated 16 November 2024
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Protesters’ biggest day expected at UN climate talks, where progress is slow

  • Several experts have said $1 trillion a year or more is needed both to compensate for such damages and to pay for a clean-energy transition that most countries can’t afford on their own

BAKU: The United Nations climate talks neared the end of their first week on Saturday with negotiators still at work on how much wealthier nations will pay for developing countries to adapt to planetary warming. Meanwhile, activists planned actions on what is traditionally their biggest protest day during the two-week talks.
The demonstration in Baku, Azerbaijan is expected to be echoed at sites around the world in a global “day of action” for climate justice that’s become an annual event.
Negotiators at COP29, as the talks are known, will return to a hoped-for deal that might be worth hundreds of billions of dollars to poorer nations. Many are in the Global South and already suffering the costly impacts of weather disasters fueled by climate change. Several experts have said $1 trillion a year or more is needed both to compensate for such damages and to pay for a clean-energy transition that most countries can’t afford on their own.
Panama environment minister Juan Carlos Navarro told The Associated Press he is “not encouraged” by what he’s seeing at COP29 so far.
“What I see is a lot of talk and very little action,” he said, noting that Panama is among the group of countries least responsible for warming emissions but most vulnerable to the damage caused by climate change-fueled disasters. He added that financing was not a point of consensus at the COP16 biodiversity talks this year, which suggests to him that may be a sticking point at these talks as well.
“We must face these challenges with a true sense of urgency and sincerity,” he said. “We are dragging our feet as a planet.”
The talks came in for criticism on several fronts Friday. Two former top UN officials signed a letter that suggested the process needs to shift from negotiation to implementation. And others, including former US Vice President Al Gore, criticized the looming presence of the fossil fuel industry and fossil-fuel-reliant nations in the talks. One analysis found at least 1,770 people with fossil fuel ties on the attendees list for the Baku talks.
Progress may get a boost as many nations’ ministers, whose approval is necessary for whatever negotiators do, arrive in the second week.