The government of Djibouti’s illegal seizure of control at Doraleh port will have minimal effect on DP World's finances, the port operator said on Sunday.
And the UAE government came out in support of the world’s fourth biggest ports operator, denouncing the “arbitrary” action of the African nation.
“There will be no material financial impact to the group as a consequence of these events,” the company said in a statement to Nasdaq Dubai, where its shares are traded.
DP World, which has handled 10.1 per cent more in gross container volumes on a reported basis in 2017, did not give further details and referred investors to its statement issued last week for further information.
DP World's shares were relatively unchanged during trading on Sunday closing at $25.06.
On Friday the port operator said that the Djibouti authorities took control of the Doraleh Container Terminal from a DP World-owned entity that designed, built and operated the terminal after winning the concession in 2006.
DP World has commenced arbitration proceedings before the London Court of International Arbitration to protect its rights, or to secure damages and compensation for breach or expropriation, it said in its February 23 statement.
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"As per the company’s guidance, there will be no impact. However, this is more of a reflection on the countries that are behaving less systematically and underpins the difficulties which investors like DP World are facing [across the globe]," said Tariq Qaqish, managing director of asset management at financial services firm Menacorp in Dubai.
"It’s time for the DP World management to revisit its external investments. We are confident that the management has done its due diligence but these are risks that can’t be eliminated entirely," he added.
The UAE government in its first official response on Sunday, criticised the unilateral action by the Horn of Africa nation with the Minister of State for Foreign Affairs, Dr Anwar Gargash, calling it “regrettable” on Twitter. “Agreements, commitments and reassurances didn’t hold up to arbitrary measures against DP World,’’ he wrote.
DP World has helped Djibouti to develop its trade for the past two decades, but the consequences of the move will be far worse for Djibouti, the minister wrote in another tweet.
“Success is based on respecting laws and agreements and Djibouti has failed that test.’’
The dispute threatens to sour relations between the governments and could affect how international investors view Djibouti as an investment destination.
In one of his tweets Dr Gargash noted that the Djibouti and Arab investment environment has received a big shock from the events that have unfolded over the weekend.
Djiboutian authorities, according to media reports, have claimed the deal signed more than a decade ago breached its sovereignty.
“The [Djiboutian] government only recently failed in its attempts to unravel the contracts by alleging the contracts were corrupt both before the High Court of England and Wales and before an arbitral Tribunal in London,” DP World said.
It added that the illegal seizure of the terminal is the culmination the Djiboutian government’s campaign to “force DP World to renegotiate the terms of the concession”, which were found to be fair and reasonable by an arbitration court in London.
DP World, which operates ports and terminals across continents, owns a 33 per cent equity stake in Doraleh terminal. The state-of-the-art port is the largest employer and biggest source of revenue in the country and has operated at a profit every year since it opened, DP World said.
The company handled 70.1 million twenty-foot equivalent units (TEUs) last year amid broad-based growth across all regions. Growth on a reported basis includes new terminals. In the UAE, DP World handled 15.4 million TEUs in 2017, up by 4 per cent year-on-year.
In the fourth quarter, volumes grew 10.3 per cent year-on-year on a reported basis.
DP World expects to spend about $1 billion every year for the next three years as it increases investment, adds capacity and acquires new assets to strengthen its global footprint, its chairman and chief executive, Sultan bin Sulayem, told The National in January.
'Project Power'
Stars: Jamie Foxx, Joseph Gordon-Levitt, Dominique Fishback
Director: Henry Joost and Ariel Schulman
Rating: 3.5/5
The specs
Engine: Four electric motors, one at each wheel
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KILLING OF QASSEM SULEIMANI
The BIO
Favourite piece of music: Verdi’s Requiem. It’s awe-inspiring.
Biggest inspiration: My father, as I grew up in a house where music was constantly played on a wind-up gramophone. I had amazing music teachers in primary and secondary school who inspired me to take my music further. They encouraged me to take up music as a profession and I follow in their footsteps, encouraging others to do the same.
Favourite book: Ian McEwan’s Atonement – the ending alone knocked me for six.
Favourite holiday destination: Italy - music and opera is so much part of the life there. I love it.
Fighter profiles
Gabrieli Pessanha (Brazil)
Reigning Abu Dhabi World Pro champion in the 95kg division, virtually unbeatable in her weight class. Known for her pressure game but also dangerous with her back on the mat.
Nathiely de Jesus, 23, (Brazil)
Two-time World Pro champion renowned for her aggressive game. She is tall and most feared by her opponents for both her triangles and arm-bar attacks.
Thamara Ferreira, 24, (Brazil)
Since her brown belt days, Ferreira has been dominating the 70kg, in both the World Pro and the Grand Slams. With a very aggressive game.
Samantha Cook, 32, (Britain)
One of the biggest talents coming out of Europe in recent times. She is known for a highly technical game and bringing her A game to the table as always.
Kendall Reusing, 22, (USA)
Another young gun ready to explode in the big leagues. The Californian resident is a powerhouse in the -95kg division. Her duels with Pessanha have been highlights in the Grand Slams.
Martina Gramenius, 32, (Sweden)
Already a two-time Grand Slam champion in the current season. Gramenius won golds in the 70kg, in both in Moscow and Tokyo, to earn a spot in the inaugural Queen of Mats.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Nancy 9 (Hassa Beek)
Nancy Ajram
(In2Musica)
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
The specs
Engine: 3.0-litre six-cylinder turbo
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How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The specs: 2018 Maserati Levante S
Price, base / as tested: Dh409,000 / Dh467,000
Engine: 3.0-litre V6
Transmission: Eight-speed automatic
Power: 430hp @ 5,750rpm
Torque: 580Nm @ 4,500rpm
Fuel economy, combined: 10.9L / 100km
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
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On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Specs
Engine: Dual-motor all-wheel-drive electric
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
MATCH INFO
Manchester City 3 (Silva 8' &15, Foden 33')
Birmginahm City 0
Man of the match Bernado Silva (Manchester City)
