Djibouti and the Red Sea: A Power Play in Maritime Logistics

By OMAR M. ELMI, Paris, France
Sunday March 8, 2026

The recent resignation of Sultan Ahmed bin Sulayem has turned heads, especially given its context involving relationships linked to Jeffrey Epstein. While the official narrative portrays the resignation as an act of accountability by the Emirati authorities, underlying motives hint at a deeper political strategy. This seems aimed at constructing a shielding mechanism to protect the broader aims of the United Arab Emirates (UAE) in global maritime dynamics, especially along vital waterways like the Red Sea.

The DP World Dilemma

The DP World affair goes beyond a mere corporate governance issue; it encapsulates a strategy of maritime influence where logistics serve as a tool for power projection. DP World, a Dubai government-owned multinational, operates in key strategic locations across the Horn of Africa, Red Sea, Eastern Mediterranean, and Indian Ocean. In this interconnected web, distinguishing between private commercial motives and state interests becomes increasingly complex.

When Djibouti entered into a thirty-year concession with DP World for the Doraleh container terminal, it wasn’t just about enhancing infrastructure. This concession represented a critical foothold for the Emirates in a corridor linking Asia to Europe, which is vital for global trade.

Abdourahman Boreh: The Man Behind the Curtain

Abdourahman Boreh, a businessman closely linked to Djibouti’s political landscape, became a crucial intermediary in the negotiations with DP World. His extensive ties to Sultan Ahmed bin Sulayem facilitated DP World’s establishment in Djibouti, from which he reportedly benefitted significantly. The arrangement was marred by ambiguity, featuring exclusivity clauses and obscure financial structures, raising concerns about the integrity of the decision-making process.

Critics pointed to the concentrated nature of the agreement, alleging conflicts of interest and a lack of genuine decision-making oversight. Ultimately, the terms of this concession sparked discontent among Djibouti’s authorities, who began to question the motivations and legality behind the deal.

The Breakup and Its Aftermath

The relationship soured dramatically when Djibouti terminated the concession in 2018, leading to a legal battle that spanned multiple jurisdictions. Initially, Djibouti faced setbacks in British courts as it targeted Boreh, who had since been labeled a political pariah accused of serious allegations.

In 2021, the London Court of International Arbitration (LCIA) ruled in favor of DP World, backing the legality of the original contract. However, a pivotal ruling on September 29, 2025, recognized Djibouti’s sovereign right to terminate the agreement. This duality of decisions highlights the tension between contractual obligations and national sovereignty, portraying a complex interaction marked by overlapping interests and power struggles.

The Port Rivalry: Berbera vs. Djibouti

The legal disputes spilled over into operational strategies. Following the concession termination, DP World shifted its focus to Berbera Port in Somaliland, investing heavily to modernize its facilities and capture a significant share of Ethiopian trade—an area historically dominated by Djibouti. This competition painted a picture of parallel infrastructures vying for dominance over the same hinterland and illustrated the broader regional power dynamics at play.

Through its strategic investments, DP World has sought to destabilize Djibouti’s near-monopoly on Ethiopian trade, reshaping supply chains and commercial routes. This competition underscores how strategic investments in infrastructure have become vital levers in the regional balance of power.

Emirati Strategy and the Israeli Angle

The ambitions of the UAE in the Horn of Africa transcend mere economic considerations; they signify a broader geopolitical strategy. In the wake of the Abraham Accords, a noticeable strengthening of ties between the UAE and Israel has emerged. Observers suggest that Emirati activities have facilitated informal diplomatic channels between Israel and Somaliland authorities, signifying a complex interplay of regional ambitions and alliances.

By embedding itself into the economic frameworks of Somaliland, the UAE has laid down a foundation that could serve its strategic interests—potentially upsetting the delicate regional balances. The development of Berbera Port captures this duality: it’s not solely a business venture but a calculated maneuver within a grander geopolitical framework.

The Red Sea: A Theatre of Strategic Interest

The Red Sea, a major conduit for global trade and an area housing military bases from different countries, has become a competitive landscape where control over ports translates into strategic leverage. The revelations regarding Sultan Ahmed bin Sulayem and Jeffrey Epstein further complicate the narrative, merging private interests with state ambitions.

The so-called “Epstein Files” expose intricate networks that could influence political landscapes at the highest levels. This adds another dimension to the power dynamics, suggesting that when corporate interests intersect with sovereign objectives, the boundaries between economic diplomacy and strategic influence blur alarmingly.

Asymmetry of Power

At the heart of the Djibouti-DP World saga lies a substantial power imbalance. Djibouti, a small nation with its economy heavily reliant on its ports, faces significant challenges against a financially robust UAE. While international arbitration may focus on contractual disputes, the broader geopolitical implications remain largely unexplored.

This structural vulnerability poses a critical question: Do smaller states like Djibouti have the necessary leverage to defend their economic sovereignty against powerful state-backed entities? The broader implications of such imbalances could lead to a future in which commercial agreements effectively replace political dialogues.

Beyond Resignation: A New Era of Maritime Strategy

Focusing solely on the fallout from Sultan bin Sulayem’s resignation is a reductive approach. The unfolding scenarios highlight a significant shift in maritime logistics as a battleground for strategic influence. The UAE is deploying its vast financial resources to secure critical port operations along essential routes, cementing its role as a major player in global maritime affairs.

This scenario raises critical questions about the ability of smaller nations to navigate such turbulent waters. As the Doraleh-Bedbera saga continues to unfold, the maritime landscape will likely serve as a theatre for geopolitical confrontations, where ports may increasingly resemble military strongholds in a new age of global competition.