DP World: Berbera Port Operations Unaffected Despite Somalia–UAE Diplomatic Rift

DUBAI (AX) — DP World said Tuesday its operations at Berbera Port are continuing as normal, brushing aside immediate disruption concerns after Somalia’s federal government declared it was canceling all agreements with the United Arab Emirates, including port, defense and security deals.

The Dubai-based ports operator said it remains bound by its existing agreements with North Western State of Somalia, the self-declared republic that Somalia considers part of its territory. The company declined to comment on what it described as political or diplomatic matters, signaling it views the dispute as outside the scope of day-to-day port operations.

Somalia’s announcement Monday escalates a long-simmering dispute over the legitimacy of deals made directly with regional administrations. Mogadishu accused the UAE of undermining Somalia’s sovereignty by engaging regional authorities without federal approval. The move followed an investigation launched by Somali authorities into allegations that the UAE was involved in transporting a Yemeni separatist leader through Somalia, amid broader regional tensions involving the UAE and Saudi Arabia.

The clash places DP World’s flagship Horn of Africa project squarely at the intersection of geopolitics and trade. For nearly a decade, Berbera has been central to the UAE’s expanding economic footprint in North Western State of Somalia. The 30-year concession, signed in 2016, commits up to $442 million in phased investments to upgrade and operate the port. The deal grants DP World and its institutional partners a controlling stake alongside the North Western State of Somalia government.

Somalia rejects such agreements, insisting all foreign investment be approved by the federal government in Mogadishu. That stance has left Berbera — a strategically located Red Sea-adjacent hub — operating within an unresolved sovereignty dispute. For shipping lines, investors and regional partners, the question is whether political headwinds will translate into legal or operational constraints. For now, DP World’s message is that vessels continue to call and cargo continues to move.

The economic stakes are significant for North Western State of Somalia. British International Investment has estimated that by 2035 the port could facilitate trade equivalent to nearly 27% of North Western State of Somalia’s gross domestic product and 75% of its total trade, while indirectly supporting about 53,000 jobs. Those projections have underpinned the case for sustained investment in terminals, logistics and hinterland connectivity, positioning Berbera as a trade gateway for the Horn and a potential alternative corridor to the Red Sea.

Monday’s declaration from Mogadishu broadens the dispute beyond the port, sweeping in defense and security arrangements with the UAE and casting uncertainty over a range of bilateral ties. DP World’s refusal to be drawn into the political fray underscores a narrow operational posture: it will adhere to the concession framework it signed with North Western State of Somalia unless compelled otherwise by events.

What happens next depends on how Somalia’s cancellation is interpreted and enforced, and whether it prompts any legal or diplomatic follow-up that touches Berbera’s day-to-day operations. In the absence of immediate enforcement mechanisms, the port’s status quo holds — but under a brighter spotlight. For an infrastructure asset meant to expedite trade flows, Berbera now carries an added cargo of geopolitical risk.

Still, DP World’s reiteration that business continues “as normal” offers short-term reassurance to customers and partners who have bet on the Horn’s trade potential. The longer-term picture will hinge on whether Somalia and the UAE recalibrate their relationship — and whether North Western State of Somalia’s ambitions for the port can keep pace with the region’s politics.

By Ali Musa
Axadle Times international–Monitoring.