The London Court of International Arbitration (LCIA) has issued its final ruling in the case between DP World and Djibouti Ports & Free Zones Authority (PDSA), owned by the Government of Djibouti.

The court confirmed that Djibouti’s 2018 seizure of the Doraleh Container Terminal (DCT) was illegal.

Although the court refused to award damages against PDSA on the grounds that the harm was caused by the Government of Djibouti and not PDSA, DP World’s claims, valued at approximately one billion US dollars, against the government and its partner, China Merchants Port Holdings, remain ongoing.

Current arbitration awards in favor of DP World, amounting to around 685 million US dollars against the Government of Djibouti, remain valid and enforceable. Djibouti has so far refused to comply with these binding decisions, constituting contempt of the rule of law and international commercial standards.

The LCIA also confirmed that DP World’s 50-year concession agreement for the Doraleh Container Terminal is legally valid and binding, and that attempts to terminate it are illegal. However, the government continues to prevent DP World from exercising its rights at the terminal.

PDSA was awarded costs in this specific proceeding. However, previous LCIA rulings found that PDSA’s attempt to terminate the 2006 joint venture agreement for the Doraleh Container Terminal was illegal. The final outcome is that PDSA remains heavily indebted to DP World.

This ruling concludes the LCIA arbitration proceedings but does not end the broader dispute for DP World. The group will continue to pursue all available legal avenues to obtain fair compensation and enforce its rights against the Government of Djibouti and China Merchants.

Following an article published by the Republic of Djibouti on September 30, the facts of this case must be restated in light of the false narrative issued by the Djibouti government:

False Claims vs. Facts;

• Claim: DP World’s billion-dollar claim was “fully dismissed.”
• Fact: The court only dismissed the claim against PDSA because responsibility lies with the Government of Djibouti. Claims against the government and China Merchants Port Holdings remain ongoing.
• Claim: The ruling “ends the dispute.”
• Fact: DP World’s 685 million US dollar compensation remains unpaid. Multi-billion dollar claims against the government and China Merchants Port Holdings continue.
• Claim: The seizure of the Doraleh Container Terminal was legal.
• Fact: Multiple rulings from independent courts confirmed the seizure was null and illegal.

DP World rejects the false allegations made by the Djibouti government in response to the ruling. The recent video statement by President Ismaïl Omar Guelleh distorts the facts of the case and ignores many binding decisions from neutral courts.

A spokesperson for DP World said: “The President’s claims contradict reality and have been repeatedly proven wrong by independent international courts. It is strange that the Djibouti government continues to spread a false narrative despite overwhelming evidence. This behavior undermines investor confidence, damages Djibouti’s reputation, and ultimately harms its people. DP World has successfully invested billions of dollars in Africa and worldwide, creating jobs, infrastructure, and significant growth. We will always defend fair treatment and the rule of law. But this case is bigger than DP World; it concerns whether governments can tear up binding contracts and ignore international law without consequences. Djibouti’s conduct is a warning to every serious investor.”