Dubai: Investment by various Dubai-based entities in Djibouti has exceeded Dh2.2 billion ($600 million) following a management takeover of the country’s major harbour by DP World, Dubai’s government-owned port operator, officials said.

Following investments made by key Dubai government entities in Djibouti, some UAE-based private investors are also gearing up to launch projects in the strategically located East African nation.

These plans include setting up of two hotels and a waterfront tourist complex, said Mehrdad Radseresht, a Dubai-based businessman who is also an advisor on foreign investment to Djibouti’s President Esmail Omar Guelleh.

“After Dubai government’s investments in Djibouti, interest of foreign businessmen in the country has grown,” Radseresht told Gulf News.

DP World manages the country’s seaport and airport and has committed $300 million to build a new container terminal in the Doraleh area, where a $150-million oil terminal has been built.

Creating demand

Nakheel, DP World’s sister concern, is developing Djibouti’s first five-star hotel, which is scheduled to open in November.

The first phase of the 400-room waterfront property will cost $150 million.

Dubai’s Al Fajer Properties is in negotiations with the Djibouti government to build an island resort close to the Djiboutian coast.

“We have decided to invest $100 million in this tourism, leisure and entertainment project. We have presented a plan to the government. Now we are in the final stage of negotiations,” Al Fajer Properties chief executive officer Shahram Abdullah Zadeh told Gulf News.

Zadeh said the island project will have a luxury resort and residential units.

Djibouti is also developing a free trade zone that is managed by Jebel Ali Free Zone Authority.

The country also has an agreement with Dubai Customs International to manage its customs administration.

Radseresht said such projects are creating demand for various services and tourism projects. He is currently working on the details of a $40-million project, which will have a three-star hotel, timeshare residential units, shopping mall and restaurants.

Radseresht has acquired about 90,000 square metres of land at the fishing port for the project.

Major attractions

“I am looking for potential partners to develop this land. Some negotiations have already taken place,” he said.

“The tourism industry is bound to grow in Djibouti as it has magnificent attractions like diving spots and coastal areas. We are focused on taking advantage of this sector.

“Djibouti is becoming what Dubai used to be in the old days. Private investors look at it as a gateway to East Africa,” Radseresht said.

DP World commits $300m for new port

 – DP World has invested $30 million in the Horizon Djibouti Terminal facility. It has committed $300 million for a new container port.

 – Jafza manages Djibouti Free Zone.

 – Dubai Customs International manages Djibouti’s customs operations.

 – Phase one of Nakheel’s five-star waterfront hotel will cost $150 million.

 – Al Fajer Properties is in talks to set up $100-millionto build an island resort close to the Djiboutian coast.