Tuesday February 18, 2025
South West State President Abdiaziz Hassan Mohamed Laftagareen meets with a senior official from Kuwaiti firm Arabic Holding to discuss a $500 million agreement for the development of Baraawe Port. The deal aims to expand the port’s capacity and boost Somalia’s trade potential in the region.
Mogadishu (HOL) — The South West State administration has signed a $500 million agreement with Kuwaiti conglomerate Arabic Holding to expand and operate the Barawa Port, a move expected to boost regional trade and strengthen Somalia’s economy. The 25-year concession grants the company control over the Lower Shabelle region’s port development, operations, and natural resource extraction.
Under the agreement, the firm will partner with Egyptian engineering company MYD to carry out a five-year development phase, focusing on port construction and infrastructure upgrades. Fahad Nawaf Al-Dosari, vice chairman and manager of Arabic Digital Holding, described the deal as a significant step toward transforming Baraawe into a central maritime hub in the Horn of Africa.
The 200-square-kilometre project will begin with surveying and feasibility studies in the coming months. Officials believe the development will enhance Somalia’s trade potential, attracting economic partnerships from landlocked nations and coastal states alike. Ethiopia, South Sudan, northeastern Kenya, Central Africa, Uganda, and the Democratic Republic of Congo are among the countries expected to benefit from improved access to the Indian Ocean.
Beyond the port, additional plans include road network expansions connecting Baraawe to the Ethiopian border town of Yeed. The deal also lays the groundwork for industrial zones and tourism development, including a fish processing plant and high-end hotels to attract international investment.
A delegation from Arabic Holding is scheduled to visit South West State in the coming months to finalize agreements. The formal contract will be signed in Baidoa, the region’s administrative capital.
Neither the South West State administration nor the Federal Government of Somalia has released an official statement regarding the agreement, leaving questions about oversight, revenue-sharing, and long-term governance unanswered.
