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.



Saudi Stocks Close Higher at 11,122 Points amid Mixed Performance

A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
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Saudi Stocks Close Higher at 11,122 Points amid Mixed Performance

A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s main stock index (TASI) ended Sunday’s session up 0.1 percent to close at 11,122 points, with liquidity of about 3.6 billion riyals ($960 million).

Among leading stocks, Al Rajhi Bank rose 1 percent to 69.1 riyals, while SABIC gained 2 percent to 58.4 riyals.

Petro Rabigh topped the list of gainers, rising 10 percent to 12.65 riyals, following the company’s announcement of its first-quarter 2026 financial results.

In contrast, Saudi Aramco, the index’s heaviest-weighted stock, fell 0.22 percent to 27.16 riyals.

Shares of NADEC and Alawwal Bank declined 4 percent each, while Kingdom Holding Company fell 3 percent.

Ban topped the list of decliners, dropping 8 percent.


Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
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Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)

Saudi Arabia’s economy has surpassed the $1 trillion mark for the first time, expanding by 80 percent since the launch of Vision 2030, according to the Kingdom’s 2025 Vision 2030 report.

The milestone underscores the impact of fiscal reforms and diversification efforts aimed at reducing dependence on oil. Non-oil activities now account for 55 percent of the economy, up from 45 percent in 2016, while non-oil government revenues have risen more than 170 percent, from SAR185.7 billion ($49.5 billion) in 2016 to SAR505 billion ($134.6 billion) last year.

The report said the gains reflected investment in growth sectors, legal reforms and a more attractive business climate.

Fiscal discipline, rising liquidity

Saudi authorities noted that fiscal policy remained anchored in spending discipline and sustainability, with deficit targets ranging between 5 percent and 7 percent of gross domestic product.

Liquidity reached a record SAR3.167 trillion in 2025, up from about SAR1.799 trillion in 2016.

Officials said expansionary spending had been directed toward strategic sectors linked to economic growth and living standards.

Debt low, reserves rise

Despite higher spending, Saudi Arabia has maintained one of the lowest debt burdens in the G20, with public debt below 50 percent of GDP. Foreign reserves rose to SAR1.7 trillion ($453.3 billion), their highest level in five years.

Real GDP growth accelerated from 1.7 percent in 2016 to 4.5 percent last year, the report said.

Competitiveness gains

Saudi Arabia rose 15 places between 2021 and 2025 in the IMD World Competitiveness Yearbook to rank 17th globally, placing fourth among G20 countries last year.

The government introduced more than 1,000 reforms and 1,200 regulatory measures in recent years, including allowing full foreign ownership in most sectors and implementing a new bankruptcy law. The measures improved transparency, dispute resolution and legal certainty for investors.

Saudi Arabia has also expanded support for small and medium-sized enterprises through Monshaat, the SME Bank and Saudi Venture Capital Company.

The number of SMEs exceeded 1.7 million by the end of 2025, employing around 8.88 million people and contributing 22.9 percent to GDP. More than 474,000 businesses are owned by young Saudis, according to the report.

Growth outlook

The International Monetary Fund projects Saudi growth of 3.1 percent this year and 4.5 percent in 2027. The World Bank forecasts growth of 4.3 percent in 2026 and 4.4 percent next year.

The Organization for Economic Cooperation and Development (OECD) expects growth of 4 percent this year and 3.6 percent in 2027. For its part, Saudi Arabia’s Finance Ministry forecasts growth of 4.6 percent in 2026 and 3.7 percent next year.


Vision 2030 Redefines Saudi Arabia's Wealth from Oil Supplier to Global Energy Hub

Solar power in Saudi Arabia (SPA)
Solar power in Saudi Arabia (SPA)
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Vision 2030 Redefines Saudi Arabia's Wealth from Oil Supplier to Global Energy Hub

Solar power in Saudi Arabia (SPA)
Solar power in Saudi Arabia (SPA)

Saudi Arabia has chosen to rethink its relationship with its resources, asking a different question: How can we make what we have work to its fullest potential in a rapidly changing world?

This was the essence of Vision 2030, which saw valuable opportunities in diversifying energy sources and maximizing the value of oil and gas to achieve greater prosperity, keeping pace with global environmental changes.

The first clear sign of this shift was the renaming of the Ministry of Petroleum and Mineral Resources to the Ministry of Energy, a clear indication of expanding the horizon from oil and gas alone to a comprehensive energy system that includes renewables at its core.

A Naturally Qualified Land

This choice was not made without study. The Kingdom possesses geographical enablers that give it an exceptional competitive position: a climate conducive to successful solar energy projects, vast areas suitable for wind power projects, and geographical diversity that contributes to the development of hydrogen energy, all supported by accumulated investment capabilities and research expertise.

On this fertile ground, a series of initiatives and projects were launched: The National Renewable Energy Program, the Custodian of the Two Holy Mosques Renewable Energy Initiative, and the establishment of the National Renewable Energy Data Center, followed by solar and wind power projects aimed at enhancing electricity generation efficiency.

The results speak clearly: The production capacity for electricity generation from renewable sources increased from 3 gigawatts in 2020 to 46 gigawatts in 2025. The total number of projects related to this sector reached 64, distributed among 40 solar power projects, 9 wind power projects, and 15 energy storage projects.

Hydrogen: The Big Bet

At the heart of NEOM, an unparalleled project is being born: the green hydrogen project, the largest and first of its kind globally, with a production capacity of 600 tons of green hydrogen per day.

To support this direction, the first phase of the Yanbu Green Hydrogen Hub was launched, equipped with facilities for generating electricity from renewable sources, desalination plants, electrolysis units, facilities for converting hydrogen into green ammonia, and a dedicated export terminal.

The Battery Race

Figures in the energy storage sector are no less exciting; the Kingdom is approaching China in the global battery storage project cost race, with a cost of $409 per kilowatt for projects with a four-hour storage capacity, compared to $404 for China.

The total capacity of proposed energy storage projects reached 30 gigawatt-hours, while 8 gigawatt-hours have been connected to the electricity grid.

In a remarkable achievement, Aramco successfully operated the world's first renewable energy storage system to support gas well production operations, with a capacity of 1 megawatt-hour, capable of supporting 5 wells for 25 years.

This system relies on a Saudi patent and represents a reliable alternative to traditional solar energy solutions, offering high efficiency in harsh climatic conditions and intelligent response to changing energy needs.

SPARK... When Industry Becomes the Value

Vision 2030 recognized that production alone is no longer sufficient, and that true value lies in building industries, localizing supply chains, and enhancing local content. This is where the idea for King Salman Energy Park "SPARK" was born, with investments exceeding 12 billion Saudi Riyals (3.2 billion dollars) and involving more than 60 local and international investors.

SPARK is located in a strategic position close to energy sources, shipping, and export networks, and includes a dry port allowing faster access. So far, 7 factories have been opened, while another 14 are currently under construction.

Balance, Not Compromise

While the world moves towards transitioning to alternatives to oil and gas, the Kingdom adopts a different vision, believing that an accelerated transition could harm global security and growth, given that renewable energy alone cannot fully meet developmental needs.

Therefore, the Kingdom continues to invest in exploring and developing oil fields, most notably the development of the unconventional Jafurah field, the largest of its kind in the Middle East, which will contribute to maximizing the value chains of gas and petrochemical industries.

Thus, the Kingdom walks a fine line, balancing the preservation of global energy supplies with investment in technologies that eliminate carbon emissions, positioning itself today as a comprehensive energy hub and a model of prudent management.