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Home » Blog » Saudi Arabia’s Investment in Eritrea’s Assab Port Could Reshape Red Sea Politics
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Saudi Arabia’s Investment in Eritrea’s Assab Port Could Reshape Red Sea Politics

Horn Intelligence
Last updated: March 11, 2025 3:12 am
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Saudi Arabia’s Investment in Eritrea’s Assab Port Could Reshape Red Sea Politics

Saudi Arabia is making a major strategic move in the Horn of Africa with plans to invest billions in Eritrea’s Assab port. This investment could shift regional power dynamics, challenging the influence of global players like the UAE, Turkey, and China in the critical Red Sea trade corridor.

The deal also poses a challenge to Ethiopia, which has long sought access to the sea. As a landlocked nation, Ethiopia under Prime Minister Abiy Ahmed views Eritrea’s ports as crucial. Reports suggest that Ethiopia might even consider military action to secure access. However, Saudi Arabia’s involvement could strengthen Eritrea’s defenses and economy, making such a move costly and politically difficult for Ethiopia.

For Eritrea, a partnership with Saudi Arabia could serve as a safeguard against Ethiopian ambitions, reinforcing its control over Assab and reshaping regional power balances. The investment is more than just economic—it reflects a broader geopolitical shift, with Saudi Arabia expanding its influence in Africa.

The move could also force other regional powers, including the UAE, Turkey, and China, to reassess their strategies. Each has invested heavily in Red Sea ports and infrastructure, and Saudi Arabia’s push into Assab may trigger new diplomatic and economic maneuvers.

Northern Somalia region could feel both positive and negative effects. The rise of Assab might divert attention from Berbera port, which is backed by the UAE. However, increased geopolitical competition could also highlight the strategic importance of having multiple regional ports, boosting economic and security cooperation.

The recent Memorandum of Understanding (MOU) between Somaliland and Ethiopia, which includes economic cooperation and potential mutual recognition, could also be affected. If Ethiopia finds itself isolated in the Red Sea, it may have to rethink its foreign policy, including its stance toward Somaliland.

In the end, Saudi Arabia’s investment in Assab is not just about trade—it’s a strategic move that could redefine alliances and influence in the Horn of Africa. As the Red Sea becomes an increasingly contested space, the responses from regional and global powers will shape the future political landscape of this vital area.

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