Djibouti flexes maritime muscle with $116m shipyard launch

Djibouti on Saturday inaugurated a major new ship repair facility aimed at strengthening its role as a maritime hub along one of the world’s busiest shipping routes. The Djibouti Ship Repair Yard (DSRY), developed in partnership with Damen Shipyards Group - a Netherlands-based conglomerate operating across the defence, shipbuilding, and engineering sectors and headquartered in Gorinchem - and financed by Invest International with an investment of €107.5 million ($116.5 million), was officially inaugurated by President Ismaïl Omar Guelleh.

Authorities said the facility is the “largest of its kind in the Red Sea and East Africa.” It features a 217-metre floating dock with a “lifting capacity of 20,100 tonnes,” enabling it to service a wide range of vessels. The project is expected to further consolidate Djibouti’s position at the entrance to the Bab el-Mandeb, a critical global shipping corridor.

“The DSRY project has always been a national priority, given Djibouti’s strategic location,” Guelleh said during the inauguration ceremony, highlighting the country’s role in servicing vessels transiting the region.

Officials noted that the yard will provide both “preventive and corrective maintenance services,” supported by a mix of international and local expertise. It is also expected to contribute to economic growth through job creation, generating around “350 direct jobs and 1,400 indirect jobs,” alongside training opportunities for young professionals in technical fields.

Infrastructure Minister Hassan Houmed described the yard as a “strategic national asset” that will enhance port competitiveness and support the country’s blue economy. Meanwhile, Aboubaker Omar Hadi said the project aligns with Djibouti’s long-term development vision to 2035 and will reinforce its regional maritime influence. Arnout Damen, Damen’s chief executive officer, reaffirmed the company’s commitment to supporting the yard’s operational success.

Djibouti, already home to key international ports and logistics infrastructure, has been working to expand its maritime services sector in order to capture greater value from shipping traffic passing through the Red Sea corridor.

Over the past several years, the country has expanded and modernized its port infrastructure, positioning itself as one of the most important maritime supply and transit hubs in the Horn of Africa. Its strategic location along major international shipping routes has made its ports indispensable not only to its own economy but also to neighboring countries that rely heavily on Djibouti’s facilities for trade. Among these, Ethiopia stands out as the primary user, depending extensively on Djibouti’s ports as its main gateway for imports and exports.

However, this expansion is taking place during a critical period, driven by rising regional competition over maritime access and port control. Regional and global actors are increasingly seeking to secure both commercial advantages and geopolitical leverage through strategic investments in ports across the Horn of Africa, reflecting a broader contest for influence in a region critical to global trade.

One prominent example of this shifting dynamic is the growing attention toward the Port of Berbera, which has emerged as a focal point of regional interest due to its strategic location along the Gulf of Aden. The port’s potential has attracted international investment and diplomatic engagement, placing it at the center of evolving geopolitical and economic strategic interests.

At the same time, the United Arab Emirates has been actively expanding its presence across regional ports through investments and long-term agreements. This strategy aims to extend its commercial reach while strengthening its political and economic influence across the Horn of Africa, effectively linking key maritime nodes to a broader strategic network.

In some cases, this growing competition has led to tensions. Djibouti and the UAE, for instance, have been involved in prolonged legal disputes over port concession agreements, underlining the high stakes associated with control over these critical assets.

Consequently, Djibouti’s latest ship repair facility should not be viewed in isolation. It is closely intertwined with broader regional alignments and realignments, where ports are increasingly seen not only as economic infrastructure but more importantly as vital strategic assets shaping economic dynamics across the region.