JEDDAH: Djibouti’s energy security will receive a major boost as the International Islamic Trade Finance Corp. signs a $90 million syndicated facility to support the country’s procurement of refined petroleum products.
The deal, signed by ITFC Chief Operating Officer Nazeem Noordali and Djibouti’s Minister of Economy and Finance Ilyas Moussa Dawaleh, will enable the Société Internationale des Hydrocarbures de Djibouti to finance the procurement of essential fuel imports.
The facility forms part of ITFC’s broader engagement with Djibouti under a $600 million three-year framework agreement signed in 2023. That accord aims to strengthen key sectors, including energy, agriculture, health, and private enterprise.
Commenting on the agreement, Noordali stated: “Djibouti’s economic potential is closely tied to the strength of its energy sector, and substantial investment is essential to unlocking that potential. ITFC reinforces its commitment to supporting Djibouti’s energy security and sustainable growth through this new facility.”
He added: “We are pleased to strengthen our long-standing partnership with Djibouti and help bolster SIHD’s ability to successfully deliver on its mandate of securing the country’s supply of oil products. We remain dedicated to advancing Djibouti’s economic development and will continue channeling funding where it creates the greatest impact.”
The transaction follows a $90 million Murabaha financing agreement concluded in February 2024 for a similar purpose, also executed with SIHD. At that time, ITFC reported total approvals of $1.6 billion for Djibouti across 33 operations in energy and health.
Djibouti, located along one of the world’s busiest shipping routes at the mouth of the Red Sea, relies heavily on imported petroleum products to meet its domestic energy demand.
The country’s government has prioritized securing reliable fuel supplies to sustain economic growth, particularly as it positions itself as a logistics and maritime hub for East Africa.
Since 2008, the Jeddah-based multilateral lender — a member of the Islamic Development Bank Group — has extended $1.7 billion in financing and capacity-building support to Djibouti.
The new deal is expected to enhance the country’s fuel security, sustain electricity generation, and support trade among Organization of Islamic Cooperation member states.
