Somalia and Abu Dhabi Development Fund Reach $257 Million Debt Settlement Agreement

GOOBJOOG NEWS | DUBAI: The Federal Government of Somalia and the Abu Dhabi Development Fund (ADFD) have reached an agreement to settle a longstanding debt of $257 million related to the Juba Sugar Factory project.

The official signing of the agreement took place during the World Government Summit in Dubai, with Somalia’s Minister of Finance, Hon. Bihi Iman Igeh, and ADFD Director General, Mr. Mohamed Saif Al-Suwaidi, representing their respective entities.

In a statement shared on his official X (formerly Twitter) account, Minister Igeh announced, “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.”

The agreement marks a critical milestone in Somalia’s broader efforts to stabilize and rebuild its economy.

It follows the country’s progress under international debt relief initiatives, such as the Heavily Indebted Poor Countries (HIPC) Initiative, which aims to support economic growth, poverty reduction, and infrastructure development.

By resolving this debt, Somalia strengthens its financial standing and opens the door for future investment and development cooperation with international partners, reinforcing its path toward long-term economic sustainability.