Somalia Secures Historic $257M Debt Settlement with Abu Dhabi
In a significant move toward financial stability, the Somali government has reached an agreement with the Abu Dhabi Development Fund (ADFD) to settle a $257 million debt tied to the former Juba Sugar Factory project. This milestone marks a crucial step in Somalia’s ongoing economic reform efforts.
The agreement was signed in Dubai during the World Government Summit by Somalia’s Minister of Finance, Bihi Iman Igeh, and ADFD Director General Mohamed Saif Al-Suwaidi. As part of Somalia’s broader strategy to resolve historical debts and foster economic resilience, this deal clears outstanding obligations and strengthens the country’s position for future development partnerships.
Minister Bihi Iman shared the news on Twitter, stating:
“We have agreed to settle 944.8 million AED ($257.3 million) with the Abu Dhabi Development Fund at the World Government Summit in Dubai, marking a significant step towards economic recovery for Somalia.”
This breakthrough follows Somalia’s successful international debt relief efforts. In 2023, the country secured a $4.5 billion debt relief package from global creditors, including the IMF and World Bank. More recently, in 2024, Somalia finalized a $1.14 billion debt forgiveness agreement with the United States.
By eliminating these financial burdens, Somalia is positioning itself for economic growth, infrastructure growth, and poverty reduction—paving the way for a more sustainable and prosperous future.
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