Somalia’s Southwest State has reportedly signed a 25-year, $500 million agreement with Kuwait’s Arabi Holding Group to develop and operate Barawe seaport, according to Somali local media. The deal grants Arabi Holding control over the port and 200 square kilometres of land for investment and resource exploitation.
Plans under the agreement reportedly include port upgrades, mineral extraction, hotel construction, a free trade zone, factories, and marine development. Egypt’s Waadi Al Misri is expected to oversee construction, with completion anticipated in five years.
The agreement was signed in Kuwait City, attended by Southwest State President Abdiaziz Laftagareen, Arabi Holding CEO Fahad Nawaf Al-Dosari, and MYD Company CEO Ayman Badie.
As of now, neither Somalia’s federal government nor Southwest State has issued an official statement regarding the deal.
Barawe, also known as Brava, is a strategic and historic port town located on the Indian Ocean. Like much of Somalia, its resources remain largely unexplored and unutilised. Only time will tell what this deal could mean for Southwest State and Somalia as a whole if it is fully realised.
