London Court: DP World Contract still valid and binding...

[Suldaanka]

http://gulfbusiness.com/london-court-rules-dp-world-djibouti-contract-valid-binding-dubai-govt/

 

Dubai’s government said on Thursday the London Court of International Arbitration (LCIA) has ruled DP World’s port container terminal contract in Djibouti was valid and binding.

The government of Djibouti seized the Doraleh Container Terminal from DP World in February over a dispute dating back to at least 2012. Dubai government-controlled DP World has called the seizure illegal.

“The LCIA Tribunal has ruled that Doraleh Container Terminal’s Concession Agreement ‘remains valid and binding …'” Dubai’s government media office said in a statement, which did not state when the ruling was made. “DP World will now reflect on the ruling and review its options.”

Also read: Dubai’s DP World will not consider settlement with Djibouti over port

A DP World spokesman referred to the Dubai government statement when contacted by Reuters for comment.

Djibouti officials could not be immediately reached for a comment.

Djibouti Ports and Free Zone Authority (DPFZA) said in March it was willing to buy out DP World’s 33 per cent stake in the container terminal to end the row with one of the world’s largest port operators. DP World denied that such an offer had been made.

In 2017, the LCIA cleared DP World of allegations of misconduct associated with the terminal concession awarded in 2000.

[Holac]

Is this guy threatening Djibouti with a military option?

[Old_Observer]

8 minutes ago, Oodweyne said:

No. But he is hinting what is known as "Assets forfeiture" in the international law. Which means his government of the AUE could work its magic, or allow their top-dollar to work its captivating magic in the Western's corridors of power, whereby some of the western's states (such as the UK and US) could be "persuaded" to use that London's court ruling as the basis of asking their Treasuries to go after Djibouti's foreign assets (if they have any to begin with).

And then you will have the Iranian's situation all over again. Which was what happened to Iran after 1979 Islamic revolution, in which every Iranian's assets in the Western's bank was frozen to this day.

Also UAE (with the help of the Saudis) could persuade the US's congress in the sense of "greasing of the balm" of the US's Congress-people with the "easy-come-and-the-easy-go-Arabian's-money", to pass a deep and financially cutting sanction on Djibouti on the ostensible ground of saying that Djibouti had violating an international commercial contract.

This in turn will means a frozen assets of Djibouti and a "secondary sanction" on any business that is seen to be dabbling in Djibouti as an investor. Which in turn will mean international investors will be running away from Djibouti (like a man running away from a place a plague was seen stalking it around) since no "international investor" wants to be hit with US's financial sanctions by doing a business with a sanctioned state(like Iran for instance).

So the "option(s)" open to the UAE and are wide and varied, as it so happens. Hence, we ought to watch this issue with a keen interests, I reckon.

Djibouti has the best weapon mankind has ever had.

The ability to say nothing do nothing the ability to stay sitting tight in a corner like a kid who has a caaugh in kindergarten.

Even if UAE gets so frustrated by Djibouti and sends Eritrea across border, Djibouti can still afford to do nothing. Let the Eritrea has some desert or barren mountain, so what just shame the French and the Eritreans have to stop before humiliating the French.

Ethiopia cannot move business from Djibouti right now. Eritrea will not be ready even to take 10% of Ethiopian business for next 2 years. Somaliland has some capacity, but UAE may not want to go that route, since that will be against Eritrea.

 

This is the case when Lao Tzu said: "The softest things in the world overcome the hardest things in the world. Through this I know the advantage of taking no action."

 

[Miyir]

I’m with OO here, Djibouti can sit tight. 

Nothing but a simple commercial dispute, Dubai can seize assets belonging to Djibouti in Dubai and still subject court ruling.

[Miyir]

 

UAE and Djibouti trade/investment totally one sided, for these reasons Dubai World to recover the seized assets minimal, a bit surprised they rejected compensation but understandable the lose is existential treat

China with the deepest pockets determined to eliminate the middle man, Djibouti was totally neglected by Dubai World it was fastest growing deep port,  Dubai world can't do much here. the politics side is all noise it will die down soon as usual the Arabs wake up too late and get emotional and start drawing money all over the place with no plans, if they invested Djibouti as the shipping volume started to grow rabidly China will never taken over, what did the shallow Badawien do? divert shipping lines to Jabel Ali and play half smart.