Djibouti Opens $116 million Ship Repair Yard to Boost Maritime Hub Status

By Asha Elmi - Reporter

Djibouti, April 5, 2026 - Djibouti has inaugurated a $116 million ship repair yard, aiming to strengthen its position as a regional maritime hub, the Djibouti Ports and Free Zones Authority said on Saturday.

The facility, known as the Djibouti Ship Repair Yard (DSRY), was officially opened on Thursday by President Ismaïl Guelleh and developed in partnership with Damen Shipyards Group, with financing from Invest International.

Located near the strategic Bab el-Mandeb strait, one of the world’s busiest shipping routes, the yard is designed to service a wide range of vessels transiting the region.

Authorities said the facility includes a floating dock measuring 217 metres in length and 43 metres in width, with a lifting capacity of 20,100 tonnes, making it the largest ship repair facility in the Red Sea and East Africa.

Djibouti has in recent years invested heavily in port and logistics infrastructure as it seeks to capitalise on its location linking Africa, the Middle East and Asia.

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“The project has always been a national priority, given Djibouti’s strategic location,” Guelleh said at the inauguration ceremony, adding that the facility would help meet demand for maintenance and repair services from passing vessels.

Officials said the project is expected to create about 350 direct jobs and 1,400 indirect jobs, while supporting skills development in technical fields.

Chairman of the Djibouti Ports and Free Zones Authority, Aboubaker Omar Hadi, said the yard would strengthen the country’s competitiveness in maritime services and support its long-term development strategy.

No timeline was given for the yard reaching full operational capacity.