situation report

Djibouti: International Arbitration Court Awards $385 Million in Compensation to Emirati Company

1 MIN READApr 5, 2019 | 16:37 GMT

What Happened: The London Court of International Arbitration has ordered Djibouti to pay roughly $385 million in compensation to Dubai-based DP World following a breach of contract in which the East African country suddenly ended a concession to the company, France 24 reported April 4. 

Why It Matters: By itself, the ruling is unlikely to alter the situation on the ground as the United Arab Emirates has already been shifting its efforts in the region by building a new container terminal in Berbera, Somaliland, to gain access to Ethiopia's emerging market.

Background: The decision comes after Djibouti unilaterally scrapped the Emirati company's 50-year concession to the country's Doraleh container terminal in February 2018.

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