
In February 2018, the government of Djibouti terminated its 30-year contract with UAE for the Doraleh Container Terminal (DCT). The government cited the terminal's poor performance and irregularities in the agreement.
UAE accused Djibouti of illegally seizing the terminal.
Why the contract was terminated
- The government claimed the agreement unfairly favored UAE.
The government said it needed to protect strategic infrastructure and the interests of Djibouti.
The government said the agreement contained elements that violated state sovereignty.
China Merchants Port Holdings became involved in managing the terminal after the termination; essentially allowing China to take over operations at the Djibouti port.
UAE accused China of successfully pressuring Djibouti to expel UAE from the country and hand over the Doraleh Container Terminal to China.
UAE filed a lawsuit against Djibouti and China, seeking billions of dollars in damages.
International courts and tribunals have already awarded UAE some $686.5 million in damages.
After it got kicked out of Djibouti, UAE wanted to punish Djibouti by moving next door to Eritrea.
UAE's request to operate the Assab and Massawa ports was rejected by the government of Eritrea.
UAE later signed a 30-year agreement with Somaliland to develop and manage the Port of Berbera.
Djibouti’s port alone accounts for 95% of Ethiopia’s imports, mostly food-aid.
UAE wants to punish Djibouti further by forcing its colony Ethiopia stop using Djibouti port altogether and use the Port of Berbera in Somaliland instead.
Too much drama for nothing.




