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Djibouti : Judicial Setback for DP World before the London Court of International Arbitration

Djibouti : Judicial Setback for DP World before the London Court of International Arbitration
Friday, 03 October 2025 12:49

(REPUBLIQUE DE DJIBOUTI)The Republic of Djibouti welcomes the arbitral award rendered on 29 September 2025 by the London Court of International Arbitration (LCIA). This decision, which is not subject to appeal, represents a particularly significant victory for the Republic of Djibouti and for Port de Djibouti SA (PDSA) in the dispute opposing them to DP World.

In this proceeding, DP World abusively claimed from PDSA nearly one billion US dollars in damages, allegedly linked to the termination by the Republic of Djibouti of the Doraleh Container Terminal concession (February 2018).

The arbitral tribunal confirmed that PDSA, a private-law entity, had no involvement in the termination of this concession. That termination stemmed from a sovereign decision of the Republic of Djibouti, and PDSA was not responsible for the “losses” invoked by DP World.

DP World’s claim was therefore deemed unfounded and was entirely dismissed. The tribunal further ordered DP World to bear all arbitration costs and to reimburse PDSA’s legal expenses (USD 1.85 million).

This decision once again reaffirms the legitimate rights of the Republic of Djibouti. It defeats the strategy of abusive legal actions and media pressure pursued by DP World against the Djiboutian State and companies operating in the national port sector.

The Government of the Republic of Djibouti reiterates its long-standing position: only a direct agreement between DP World and the Republic of Djibouti – one that safeguards common interests while ensuring the nation’s sovereignty over its strategic infrastructure – will bring the commercial dispute with DP World to a close.

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