Djibouti Damerjog Industrial Devevelopment (DDID)

General Description

The Djibouti Damerjog Industrial Development Free Trade Zone (DDID FTZ) is an industrial free zone project focused on heavy industry including oil, gas, ship repair, and livestock. Constructions for the industrial zone and port will start in August 2018. The project site comprises a total area of 30 km2 and is located close to the border with Somalia. Being a FZE, DDID is 100% owned by GHIH. This structure is likely to change to a FZCO as negotiations are currently ongoing with various parties. The pilot phase of the DDID will consist of a 2.5 km2 zone which will be completed 48 months after start of construction in August 2018.

Incentives

Companies registered in the DDID FTZ will enjoy a favourable tax policy including zero VAT, Dividend Tax, Corporate Income Tax, Property Tax, and Personal Income Tax. Furthermore, the DDID offers favourable tax policies on social security, work permits, and the share of local employment required. Companies settling in the DDID zone are required to have at least 30% local employees in the first 5 years.

Status of the Project

The Pilot Phase will include:
• A dedicated tank storage farm with a capacity of 380,000 m3;
• A product / crude oil jetty (2 berths; 1x 100,000 DWT and 1x
50,000 DWT);
• A multi-purpose port on reclaimed land with a 270m quay;
• An oil refinery; and,
• All essential basic infrastructures such as office buildings for
DDID, an electricity plant (2x 60MW), internal roads; a water distillation facility, and a 14km rail which connects to the SGR.
The DDID will be constructed so that all essential infrastructure is available, after which private companies will invest in superstructure. In the long term, DDID will include a LNG export terminal, a steel rolling facility, a cement plant, a ship repair yard, an expanded multi-purpose port, and livestock port.