Dubai warns against action against China over Djiboutian commercial zone

Dubai (AFP) – Dubai on Thursday threatened to sue China for building an international free trade zone in Djibouti on a disputed terminal with the strategic Horn of India nation. Africa

The first phase of the largest free trade zone in Africa, developed by China, several months after the abandonment of a concession agreement with DP World, the port operator Dubai World Cup

"DP World reserves the right to take all available legal actions, including claims for damages against any third party that would interfere with the Free Trade Area as it considers Djibouti an important part of its global investment initiative "Belt and Road" or otherwise violate its contractual rights, "said the port operator in a statement.

The small nation of Djibouti overlooks the Bab al-Mandab Strait at the mouth of the Red Sea. In February, he ended a 50-year concession agreement with DP World on the Doraleh container terminal, alleging a flagrant violation of state sovereignty and national interests.

Dubai has already filed for arbitration in the dispute before the London International Arbitration Court.

DP World reiterated Thursday that its concession agreement on the terminal "remains in effect" and warned that "the illegal seizure of the facility DP World, which operates 78 ports in more than 40 countries, has increased his interest in the Horn of Africa and nearby with contracts to manage In 1965, Djibouti unveiled three new ports and a railroad linking Ethiopia to the enclave, as part of The commercial zone, which is connected to Djibouti's main ports, aims to diversify the economy, create new jobs and attract foreign investment through tax-free incentives and logistical support.

President Xi Jinping expected to visit the United Arab Emirates next week

The Free Trade Area is led by Djibouti, the majority shareholder, and three Chinese companies.