Somalia has banned port operator DP World from operating in the country and has decided that a contract signed last year between DP World and the partially self-governing Somaliland, on the development of an economic trade zone, is null and void.

According to Reuters, the decision was made by a unanimous Somalian parliament Monday, as a response to growing rivalries in the strategic Horn of Africa region over Dubai-owned DP World's investments.

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"Any agreement signed with DP World is null and void since it opposes the constitution, the rule of foreign investment in Somalia, and other rules of the country. DP World openly violated the independence and unity of Somalia," reads the government's resolution, according to Somalia's state news agency, reports Reuters, which has tried to get a comment from DP World but they did not immediately respond.

In February, neighboring state Djibouti took control over the port Doraleh Container Terminal, which DP World was operating on a long-term concession.

DP World is among the world's largest port operators, and the company has described Djibouti's behavior as an illegal seizure and has initiated an arbitration case in London.

DP World announced last week that the company had entered an agreement with Somaliland to develop an economic zone spanning 12 square kilometers. A project, which was set to begin later this year.

English Edit: Ida Jacobsen

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