Red Sea Unrest Revives Djibouti Ports

Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)
Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)
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Red Sea Unrest Revives Djibouti Ports

Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)
Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)

The unrest in the Bab al-Mandab region, the Red Sea, and the Gulf of Aden has contributed to the recovery of container handling operations in Djiboutian ports in recent months, according to Djiboutian officials.

Container handling at Doraleh Port, Djibouti's largest port, increased by up to 10% compared to the previous months, officials told Asharq Al-Awsat.

Houthi attacks on commercial ships in the Red Sea caused a sharp rise in marine shipping insurance, with fees imposed to cover risks associated with conflicts.

Since November 2023, the Iranian-backed Houthis have been carrying out attacks on commercial ships in the Red Sea that they suspect are linked to Israel or heading to its ports.

They say that this comes in support of the Gaza Strip, which has been witnessing a war since Oct. 7, 2023.

Washington and London have also launched joint military strikes on Houthi positions inside Yemen several times since last Jan. 12.

Advisor of the CEO of Operations at Doraleh Port Ismail Hasan told Asharq Al-Awsat that the port served more than 100,000 containers with an average of 60-70 ships of various sizes last January, and it can receive the largest ships in the world.

All international shipping and navigation companies are in Doraliya Port, serving over 60 ports worldwide.

Last January, the port witnessed an increase in handling by a rate of 5-10% compared to previous months.

During Asharq Al-Awsat's visit to Doraleh Port, the Chinese ship Zhong An Xin Huayuan was anchoring for the first time, according to Hasan.

He explained that the tensions in the Red Sea led new shipping companies to enter as new clients of the Djiboutian ports.

Djibouti has about five specialized ports, including Doraleh Port, and others for various goods, commodities, and iron, some of which are dedicated to energy.

Several Chinese shipping lines have been redeploying their vessels to serve the Red Sea and the Suez Canal in what analysts have said is an effort to exploit China's perceived immunity from the Houthi attacks that have driven most other operators out of the area, according to the Financial Times.

The newspaper said two vessels were listed on the website of Qingdao-based Transfar Shipping, which describes itself as "an emerging player in the transpacific market" as part of its fleet list.

However, Transfar said on Friday that it had stopped operating the ships in February 2023 and needed to know which company was using them now.

The report stated that the move of Chinese lines to the Red Sea comes after most big container shipping lines — including China's Cosco, operator of the industry's fourth-biggest fleet —abandoned the southern Red Sea because of the security risks.

According to Hasan, Djibouti seeks to become a global hub that serves most of the markets, extending from China in the east through the Middle East and the Mediterranean all the way to Northern Europe.

According to official statistics, Djibouti ports witness daily transit of about 90 ships, 59% of which are coming from Asia, while vessels from Europe represent 21%, while other continents, including Africa, represent 16%.

According to the International Monetary Fund (IMF), maritime transport through the Red Sea decreased by approximately 30% in one year.

The International Chamber of Shipping says the Red Sea is a vital route that usually carries about 12% of global trade.

Doraleh Port, established in 2009, is about three kilometers from the gate to the edge of the sea, with a depth of 20 meters and a width of 1,050 meters, and it is considered one of the largest container ports in Africa.

Hasan told Asharq Al-Awsat that the port was equipped with the most advanced handling machines in the world, and it began operating only about three months ago.

The port ranked first in Africa for three consecutive years, and there are 30 mechanisms dedicated to distributing containers registered in a system with unique codes.

Some containers are destined for domestic and neighboring countries, and others are being re-exported to other international ports.

He explained that all the working crews are Djiboutian, with 800 full-timers and about 1,000 hired when needed.

Hasan addressed the establishment of a seaport for Ethiopia in Somaliland after announcing an initial agreement between the two sides, indicating that this would not affect the Djiboutian ports.

The advisor asserted that establishing an Ethiopian port in Somaliland would not affect the Djiboutian ports.

- Freight train to Ethiopia

Doraleh Port is directly connected to the main train terminal to transport goods from the port to Ethiopia.

Djibouti is the main gateway for Ethiopian imports and exports to and from the world.

According to the advisor, the train's journey from the port to Metu in Ethiopia takes 10 to 12 hours before continuing its way to Addis Ababa.

Hasan pointed out that three train lines can be operated simultaneously, while two trains run daily to Ethiopia, with an average of 106 containers for each train.

The Addis Ababa-Djibouti railway line is the first electric-powered railway line designed to Chinese specifications.

Djibouti and Ethiopia benefit from it by establishing industrial and logistical zones and constructing new cities and villages along this line, which passes through the Horn of Africa.

Ethiopia, which exports and imports nearly 90% of goods through Djibouti ports, has plans to expand the train network to extend to Sudan, Kenya, and South Sudan.



Egypt, Qatar's Al Mana Holding Sign $200 Million Sustainable Aviation Fuel Deal

A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
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Egypt, Qatar's Al Mana Holding Sign $200 Million Sustainable Aviation Fuel Deal

A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo

Egypt signed a contract with Qatar's Al Mana Holding for a first-phase investment of $200 million to produce sustainable aviation fuel from used cooking oil in the Suez Canal Economic Zone at Ain Sokhna, Egypt's cabinet said on Sunday.

The project will be developed in three phases and will span 100,000 square metres in the Integrated Sokhna Zone on Egypt's Red Sea coast. The first phase will have an estimated annual production capacity of 200,000 tonnes, Reuters quoted the cabinet as saying in a statement.

The deal marks the first Qatari industrial investment in the Suez Canal Economic Zone, Egypt said.

Prime Minister Mostafa Madbouly said the project "reflects the positive momentum in relations between Cairo and Doha, driven by the shared political will to advance bilateral cooperation through joint investments and increased trade."

Last month, the real estate arm of Qatar's sovereign wealth fund said it would invest $29.7 billion to develop a luxury real estate and tourism project on Egypt's Mediterranean coast.

 


Saudi Arabia Prepares to Allow Foreign Property Ownership in January

Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)
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Saudi Arabia Prepares to Allow Foreign Property Ownership in January

Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)

Saudi Arabia is preparing to enter a new phase of economic openness in the real estate sector, with the updated law regulating property ownership by non-Saudis set to take effect in January.

The law, approved by the Saudi cabinet in July, is a strategic step to regulate real estate ownership by non-Saudis, both individuals and entities. Its main objective is to boost the real estate sector’s contribution to gross domestic product and diversify national income sources away from oil, in line with Vision 2030 goals.

The General Authority for Real Estate, the body responsible for implementation, is currently drafting the executive regulations and defining the geographic scope of areas where foreigners will be allowed to own and invest in property. These details are expected to be announced before the law comes into force.

The new legislation also aims to retain global talent by enabling long term residency and improving urban and housing quality.

Scope of ownership

Saudi Minister of Municipalities and Housing Majed Al-Hogail said in a televised interview last week that the system allowing foreigners to own residential property would be implemented next month across all Saudi cities, except for four, Makkah, Madinah, Jeddah and Riyadh.

In those cities, ownership will be permitted in specific designated areas. Resident expatriates will be allowed to own one residential unit.

In contrast, the system offers broader flexibility in other economic sectors, with foreign ownership open across all Saudi cities without exception in the commercial, industrial and agricultural sectors.

Fahd bin Suleiman, executive director of non-Saudi property ownership at the authority, said in November that areas designated for foreign ownership in Riyadh, Jeddah and the holy cities of Makkah and Madinah were still under review and would be announced “very soon” alongside the executive regulations governing the new rules.

He said those areas would be “very wide” and include what are known as mega projects, with foreign ownership ratios expected to range between 70 percent and 90 percent.

Bin Suleiman added that buyers would be required to be Muslim to purchase property in the two holy cities, but would otherwise face limited restrictions.

“In general, there are no major conditions, and we do not want to impose constraints. When comparing the current law with the updated one, the difference will be clear,” he said.

Market expectations

Commenting on the imminent implementation of the updated system, several real estate experts told Asharq Al-Awsat that the law would generate additional demand for ready built housing units and increase liquidity in the property market.

They said it would also encourage international companies to establish headquarters and projects in the Kingdom, supporting economic activity and laying the foundation for a more stable and growing real estate sector.

They expect the positive impact to be most evident in Riyadh, Jeddah, Makkah, Taif and Madinah, as well as cities near tourist destinations, with initial effects emerging in the third and fourth quarters of 2026 and extending into 2027.

Real estate expert and marketer Saqr Al-Zahrani said the system’s implementation would mark a turning point for the Saudi property market by expanding the base of market participants and prompting many expatriates to move from renting to ownership, particularly in permitted cities.

This shift, he said, would create additional demand for ready built units and planned residential communities, boosting sales activity and market liquidity.

Raising property quality

Al-Zahrani added that opening commercial, industrial and agricultural ownership to foreigners across all cities would give international companies stronger incentives to establish operations in Saudi Arabia, supporting economic growth and long term real estate sector stability.

He said one of the first expected changes would be an improvement in property quality, as developers move toward higher specifications and better planning to meet the needs of a broader buyer base.

The market is also likely to see an increase in organized supply, driven by the entry of local and international investors and developers targeting new demand.

The updated system, he said, would support price stability, as ownership by expatriates and foreigners tends to be long term, reducing short term speculation.

It would also enhance transparency and governance through accompanying legal and regulatory controls, while creating wider opportunities for the financing sector to develop tailored products for expatriates and foreigners, boosting lending activity and liquidity.

Al-Zahrani said the announcement of the system’s implementation would trigger immediate inquiries and interest, but the real impact on transaction volumes would emerge gradually, with initial signs expected in the second quarter of 2026, as the first deals are completed.

Clear indicators such as higher trading volumes, faster project delivery and increased foreign investor participation are likely to materialize in the third and fourth quarters, once the market has absorbed the executive regulations and begun to interact with them in a stable manner.

He said the first year of implementation would be a transition period, with the strongest effects becoming evident in the second half of 2026 and beyond.

Varying impact by geography

Real estate expert Ahmed Al Faqih said the system’s impact would vary by location, with the strongest positive effects expected in the Makkah region and its cities, including Jeddah and Taif, as well as Madinah. Riyadh, he said, would also play a prominent role in attracting non-Saudi capital for both ownership and investment.

Al Faqih said capital targeting tourism investment would likely focus on cities near tourist areas, such as Taif, Abha and Jazan, as well as Tabuk due to its proximity to the Neom project.

He expects the first year of implementation to serve as a testing and evaluation phase, with the system’s impact becoming more evident in 2027. He said the law would support key Vision 2030 objectives, including income diversification and reducing reliance on oil, while creating hundreds of thousands of job opportunities for Saudi men and women.

System incentives

The updated law aims to regulate real estate ownership by non-Saudis in line with Vision 2030, attract foreign direct investment into the Saudi property market and increase the sector’s contribution to the economy.

It also seeks to retain global talent by enabling long term settlement, raise the contribution of non-oil sectors, support sustainable economic growth and improve urban living standards.

Under the law, non-Saudis are permitted to own property or acquire rights within geographic areas designated by the cabinet, based on a proposal from the Real Estate General Authority and approval by the Council of Economic and Development Affairs. This includes specifying eligible rights, maximum ownership ratios and related controls.

The law also allows a non-Saudi resident natural person to own one residential property outside the designated geographic scope, excluding Makkah and Madinah. Ownership in those two cities requires the buyer to be Muslim.

Non listed companies partly owned by non-Saudis are permitted to own property within the designated areas, including Makkah and Madinah, provided they are established under Saudi company law. They may also own property outside those areas for operational purposes or employee housing, as defined by the regulations.

Listed companies, investment funds and special purpose entities are allowed to own property across the Kingdom, including Makkah and Madinah, in accordance with rules issued by the Capital Market Authority in coordination with the real estate authority and other relevant bodies.

The law stipulates that its application does not affect rights granted under other systems, such as the Premium Residency Program or Gulf Cooperation Council agreements, and that foreign ownership does not confer any additional privileges beyond legal rights.

It also introduces a fee of up to 5 percent of the property transaction value for non-Saudi ownership, with details to be set out in the executive regulations.

Violations may result in fines or warnings, while providing misleading information can lead to fines of up to 10 million riyals and, in some cases, court ordered sale of the violating property.


China Urges Stronger Coordination Between Business, Finance Systems to Spur Consumption

People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)
People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)
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China Urges Stronger Coordination Between Business, Finance Systems to Spur Consumption

People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)
People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)

China's commerce ministry and financial regulators have urged local authorities to promote stronger coordination between business and financial systems to boost consumption, a joint statement showed on Sunday.

Local commerce departments are encouraged to tap existing funding channels for consumption-boosting campaigns and work with financial institutions to unlock spending potential, the Ministry of Commerce, People's Bank of China and National Financial Regulatory Administration said in a joint statement.

Regions with resources are encouraged to use digital yuan smart-contract "red packets" to improve policy efficiency.

The trio also called for measures such as financing guarantees, interest subsidies and risk compensation to strengthen policy synergy and guide more credit into key consumption sectors.

In other economic news, Chinese demand for foreign luxury cars is waning as customers opt for more affordable Chinese brand models, often sold at big discounts, catering to their taste for fancy electronics and comfort.

That is bad news for European carmakers like Porsche, Aston Martin, Mercedes-Benz and BMW that have long dominated the upper reaches of the world's largest auto market.

A prolonged property downturn in China has left many consumers with little appetite for big purchases.

Meanwhile, the well-to-do are becoming increasingly shy about publicly displaying their wealth, said Paul Gong, UBS head of China Automotive Industry Research.

Many car buyers have been swayed by a 20,000 yuan ($2,830) trade-in subsidy offered by the Chinese government for purchasing electric and plug-in hybrid vehicles. People tended to purchase cheaper, entry-level cars where the discount will count more and those cars are mostly Chinese made, Gong said.

“Slowing economic growth is one key driver behind weaker demand for premium cars,” said Claire Yuan, director of corporate ratings for China autos at S&P Global Ratings, referring to a segment that typically counts car brands such as Mercedes-Benz and BMW.

The market share of premium car sales in China, usually priced above 300,000 yuan ($42,400), more than doubled between 2017 and 2023 to about 15% of total sales, S&P said.

That trend is now reversing. The share of premium cars sales fell to 14% in 2024 and to 13% in the first nine months of 2025, S&P said.