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.
“It is extraordinary that the government continues to spread a false narrative despite overwhelming evidence,” said a DP spokesperson.
“DP World has successfully invested billions across Africa and globally, creating jobs, infrastructure and growth.
“But this case is bigger than DP World – it is about whether governments can tear up binding contracts and ignore international law without consequence. Djibouti’s behaviour is a clear warning to serious investors.”
The dispute began in 2018 when Djibouti unilaterally terminated DP World’s 30-year contract, claiming the move protected national sovereignty. The government also alleged bribery in securing the original concession. After taking over the terminal, DP World staff were expelled and the facility was handed over to state control.
Despite repeated rulings in DP World’s favour, Djibouti continues to contest the case.
