UK court rules to protect DP World deal in Djibouti

Djibouti authorities seized control of the Doraleh Container Terminal (DCT) port from DP World in February of this year. (AFP)
Updated 05 September 2018

UK court rules to protect DP World deal in Djibouti

  • On Feb. 22, the Djibouti authorities seized control of the Doraleh Container Terminal (DCT) port from DP World, which had been awarded the concession in 2006
  • In the run-up to the seizure, the Djibouti government had already attempted to force DP World to renegotiate the terms of the port concession

LONDON: A court in the UK has ruled in favor of Dubai ports operator DP World over a case involving a disputed shipping terminal in Djibouti.
On Feb. 22, the Djibouti authorities seized control of the Doraleh Container Terminal (DCT) port from DP World, which had been awarded the concession in 2006.
In the run-up to the seizure, the Djibouti government had already attempted to force DP World to renegotiate the terms of the port concession.
But the High Court of England and Wales has granted an injunction restraining Djibouti’s port company, Port de Djibouti S.A. (PDSA), from treating its joint venture shareholders’ agreement with DP World as terminated, according to a Dubai Government statement issued Wednesday.
The court also prohibited PDSA from removing directors of the DCT joint venture company who were appointed by DP World, the statement said.
“PDSA is not to interfere with the management of DCT until further orders of the court or the resolution of the dispute by a London-seated arbitration tribunal,” the Dubai Government statement said.
“The High Court’s order follows the unlawful attempt by PDSA to terminate the joint venture agreement with DP World and the calling of an extraordinary shareholders’ meeting on 9 September by PDSA to replace DP World-appointed directors.”
The legal ruling is the third in favor of DP World in the long-running dispute.
In August, Djibouti’s seizure of the Doraleh Container Terminal was ruled illegal by the London Court of International Arbitration.
The ruling will come as a blow to Djibouti and could potentially threaten the country’s ability to attract foreign investment in the future, analysts told Arab News at the time.
The Doraleh port has three berths and an annual capacity of 1.2 million 20-foot equivalent units of container traffic. Under the concession agreement, the Djibouti government had a
67 percent stake while DP World held 33 percent.


Saudi finance minister reassures public on taxes

Updated 10 December 2019

Saudi finance minister reassures public on taxes

  • Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
  • The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.