(MENAFN) The United Arab Emirates (UAE) logistics company port deal has been rejected by the federal government of Somalia which said that it undermines its unity, sovereignty and is a violation of its constitution, Africa News reported Monday.
Ethiopia holds 19% of the Berbera port, in an agreement with Somaliland's Port Authority and UAE Company DP World. DP World remains the major share owner; with a 51% stake, while Somaliland holds 30%. The Ethiopian government will invest in infrastructural development for the Berbera port.
"The present agreement is nothing new," Muse Bihi Abdi, president of Somaliland said in a statement on Saturday. "It is an extension of the agreement entered into between the Republic of Somaliland and DP World and approved by the Parliament."
This port is the commercial capital for Somaliland, which officially opened in 1968. It is located in Somaliland which is recognized by the international community as an autonomous state of Somalia.
Somalia's relations with the UAE have been unsettled since June last year. It was pressured to support one of two camps, the UAE and Saudi Arabia or Qatar, after the Arab states were vying for geo-political support.
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