Dubai's DP World will break ground on a free zone project in Somaliland this year.

The final agreement to develop the greenfield free zone was signed between officials from DP World and Somaliland's government in Dubai.

READ: DP World to develop Jafza-inspired free zone in Somaliland

Located next to Port of Berbera, the 12kmeconomic free zone is expected to support the port's growth and generate jobs. 

Logistics, warehousing, and manufacturing will be the key business lines serviced through the free zone. 

Commenting on the project, Sultan Ahmed Bin Sulayem, group chairman and chief executive officer of DP World, said: "[The project is] a boost for local prosperity – jobs for the people of Somaliland and future generations.

"We look forward to bringing our global experience here and to help develop the Berbera Corridor, which is key to encouraging regional economic activity." 

Dr Saad Al Shire, Somaliland's Minister of Foreign Affairs and International Cooperation, added: "Developing the free zone will complement the growth of Berbera Port, enabling it to become a gateway for trade to the region and the whole of Africa.

"It will also generate jobs for the local population and encourage small- and medium-sized companies in the area to locate their operations in an environment conducive to trade.

"Our partnership with DP World is a model that we are keen to develop and for the benefit of all."