The London Court of International Arbitration has ruled that Djibouti’s 2018 seizure of the Doraleh Container Terminal from global port operator DP World was unlawful, reaffirming the validity of the 50-year concession agreement originally granted to the Dubai-based company

The tribunal concluded that the government of Djibouti, not Port de Djibouti SA, was liable for the breach, though it did not resolve wider disputes between DP World, the Djiboutian state and China Merchants Port Holdings.

DP World’s US$1 billion claim against Djibouti and its Chinese partner remains active, alongside US$685 million in prior arbitration awards that Djibouti has so far failed to pay.