Real GDP growth was an estimated 4.2% in 2018, down slightly from 5.0% in 2017, driven mainly by increased investment in the mining and housing construction sectors.
Normalized relations with Ethiopia are expected to bring a substantial peace dividend.
The cessation of hostilities and the removal of UN sanctions will facilitate Horn of Africa stability and open economic opportunities between the two countries, their neighbors, and the international community. Anecdotal evidence already suggests that trade has begun to thrive between Eritrea and Ethiopia and that investors are flocking to Eritrea looking for opportunities.
Ethiopia’s use of the Eritrean ports of Assab and Massawa will relax the foreign exchange constraints Eritrea faces. The peace dividend also includes the release of a large number of conscripts for productive activity in labor-intensive sectors such as services, construction, and agriculture.
Downside risks include Eritrea’s vulnerability to climate shocks because of its heavy dependence on rainfed agriculture.
The city of Adulis will rise on the shores of the Red Sea in Massawa, Eritrea, reclaiming the ancient spirit of the legendary Axumite port that once connected Africa with Arabia, India, and the Mediterranean. This project seeks to create not just a modern settlement, but a strategic, climate-resilient city that positions Eritrea as a central node in regional trade, culture, and innovation.
Adulis’ deep-water harbor connects continents, its special economic zones fuel new industries, and its smart infrastructure makes global trade seamless. Yet this is not just a city of commerce — it is a city of beauty and survival, where shaded courtyards, solar towers, and water plazas create oases in one of the world’s harshest climates.
The coral-stone past of Massawa is reborn within Adulis’ cultural heart, where history and heritage flow into museums, theaters, and waterfront promenades. Every street, every plaza, every landmark is designed to show that Africa’s Horn is not the periphery, but the pulse point of the future.
Adulis is a living statement: a city that opens Africa to the world and the world to Africa. A gateway not only to trade, but to a new chapter of civilization.
Futuristic port district of Adulis
Futuristic port district of Adulis
Adulis Heritage Core Street Scene
Adulis Heritage Core Street Scene 2
Central civic district of Adulis
Central civic district of Adulis