Somalia’s South West State has entered into a 25-year agreement with the Kuwaiti government, granting Arab Holding Group Company control over Barawe Port and a 200-kilometer surrounding area. The deal, valued at $500 million, aims to enhance infrastructure and economic opportunities in the region.
As part of the agreement, major development projects will be launched, including the construction of hotels, factories, and fisheries to create job opportunities. The Egyptian firm Waadi has been contracted to oversee construction efforts.
Somalia’s strategic location continues to attract international investment, particularly from Gulf nations. Key ports such as Berbera and Bosaso are already under the control of gulf nation specially the UAE, reflecting the growing interest in the country’s maritime infrastructure.
After three decades of conflict, Somalia is gradually rebuilding its economy and infrastructure. While the Barawe deal is expected to boost economic activity and employment, the full details of the agreement remain undisclosed, raising questions about its broader implications for Somalia’s sovereignty and economic future.