Islamic Development Bank Loans Djibouti Funds for Construction

The Islamic Development Bank loaned Djibouti $8.5 million to help build a residential and commercial center in Djibouti City, the capital.

A foundation stone for the project, which will include a shopping mall, office space and three residential buildings, was laid yesterday by President Ismail Guelleh and Ahmed Mohamed Ali, president of the Islamic Development Bank.

The bank also provided a $300,000 grant to the Horn of Africa nation to help alleviate the effects of a drought in the region, Simon Mibrathu, secretary general at the Economy and Finance Ministry, told reporters yesterday.

Djibouti, about the size of Massachusetts, has a $982 million economy that relies on services related to its strategic location on the Red Sea, one of the world’s busiest shipping lanes.

To contact the reporter on this story: Mohamed Osman Farah in Djibouti via Nairobi at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.