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Saudi Arabia, 25 October 2025 — The Djibouti Ports and Free Zones Authority (DPFZA) has announced the signing of a 30-year concession agreement granting Saudi Arabia’s Red Sea Gateway Terminal (RSGT) operational rights to manage and develop the Port of Tadjourah.
The framework agreement, signed on Friday in Jeddah, builds on a Memorandum of Understanding (MoU) reached between the two parties in March 2025, underscoring the expansion of cooperation between Djibouti and Saudi Arabia in the maritime and logistics sectors.
The ceremony was witnessed by Aboubaker Omar Hadi, Chairman of DPFZA; Dya-Eddine Said Bamakhrama, Djibouti’s Ambassador to Saudi Arabia; and Jens O. Floe, CEO of RSGT International. The agreement was formally signed by Kamil Mohamed Gorah, Chairman of the Port of Tadjourah, and Gagan Seksaria, Director of Investments at RSGT. The officials described the deal as a significant step towards diversifying Djibouti’s port infrastructure.
Under the 30-year deal, RSGT will transform the Port of Tadjourah into a multi-purpose terminal with an initial handling capacity of five million tons per year, positioning it as a key gateway for Ethiopian imports and exports — including potash, fertilizers, grains, construction materials, and containers.
Plans also include establishing a dedicated free zone, designed to attract foreign investment and integrate value-added logistics and warehousing services.
“The collaboration between RSGT and DPFZA in the development of the Port of Tadjourah will further consolidate Djibouti’s strategic position as a leading logistics and maritime hub in the Horn of Africa and the Red Sea, serving as a vital bridge between Africa, the Middle East, and global markets,” Djibouti Ports and Free Zones Authority said in a statement.
Originally inaugurated in 2017, the Port of Tadjourah was primarily built to handle Ethiopia’s potash exports from the Afar region. However, limited utilization and infrastructure challenges have slowed its growth — a gap the new Saudi partnership seeks to close.
