DUBAI, United Arab Emirates (BG) — Somaliland is positioning itself as a strategic economic gateway in the Horn of Africa, drawing significant global investments while pushing for international recognition.
During a recent panel discussion at the World Governments Summit in Dubai, Somaliland President Abdirahman Mohamed Abdullahi highlighted the economic transformation of Berbera Port and the country’s growing role in regional trade.
“Berbera Port is the most famous port in the Red Sea, and DP World has invested $400 million in Berbera Port. It was transformative,” Abdullahi said. “That investment has modernized the port. It has increased the capacity of the port, and now it became a very important port that can give service to most of the African countries that have no port.”
Somaliland’s primary trade partner, Ethiopia, is a landlocked nation with a population of over 140 million, which renders Berbera a vital logistics hub.
“Our main customer and our friendly country is Ethiopia,” Abdullahi said, adding that he expects the two nations to finalize their transit and trade agreements soon.
A Strategic Bet on Berbera’s Location
Somaliland’s geographical position offers a strategic advantage in global shipping and logistics.
The republic boasts an 850-kilometer coastline along the Gulf of Aden, a vital maritime corridor connecting Asia, the Middle East, and Africa.
Historically, Berbera’s port and airport have played significant roles in international military and economic affairs.
“Somaliland, Berbera, where the boats and the airport have been used previously during the Cold War, one is by Russians, and one is by Americans. So, you can understand the strategic location of Berbera,” Abdullahi said.
Sultan bin Sulayem, group chairman and CEO of DP World, echoed this sentiment, emphasizing that Ethiopia’s booming economy necessitates access to multiple ports, with Berbera emerging as a primary choice.
“Ethiopia has a double-digit growth in their economy. It’s a country of over 100 million people. And the study shows that Ethiopia needs at least five ports to cope with the growth they will see in their country. And we selected Berbera for many reasons,” bin Sulayem said.
DP World’s $400 Million Investment—A Game Changer
Dubai-based logistics giant DP World’s $400 million investment in Berbera Port has transformed it into a modern and efficient trade hub, capable of handling large cargo shipments and accelerating trade in the region.
“We definitely found an opportunity. We developed a port. Immediately, cargo started to come. We are able to handle any size of vessels in Berbera,” bin Sulayem noted.
The investment extends beyond the port into an industrial corridor.
“The government also, His Excellency the President, provided land for industries. We already have factories under construction,” bin Sulayem said, “more factories are coming.”
This expansion is expected to stimulate economic growth and create jobs, further solidifying Somaliland’s role as a key trading partner in East Africa.
Pushing for U.S. Recognition
While Somaliland has enjoyed de facto independence since 1991, it remains unrecognized by most countries, including the United States. However, Abdullahi remains hopeful this will change soon.
“We have all good relations with the United States, with Great Britain, and other countries. But now, we hope that the United States may be the first country to recognize Somaliland,” he said.
Somaliland has consistently showcased itself as a stable, democratic entity, holding regular elections and peaceful transitions of power.
Abdullahi was elected President of Somaliland in 2024 as the Waddani Party candidate, winning nearly 64% of the vote against incumbent Muse Bihi Abdi’s 35%. He was inaugurated on Dec. 12 2024.
The argument for recognition is strengthened by its ability to negotiate trade agreements and attract foreign investments independently.
A Nation in Limbo—Yet Thriving
Despite lacking formal international recognition, Somaliland has established diplomatic and economic ties with the United Arab Emirates, Ethiopia, and various European nations.
“All the countries in the world have been dealing with Somaliland as a separate entity,” Abdullahi said.
Economic partnerships such as the Berbera Port agreement with DP World reinforce Somaliland’s self-sufficiency and ability to govern effectively.
The country has proven its capability in managing trade, infrastructure development, and regional diplomacy without governance from Mogadishu, Somalia.
Trump’s Potential Role in Somaliland’s Future
The U.S. has long been a key player in African geopolitics, and Somaliland sees a potential ally in President Trump.
The Trump administration prioritized economic and security partnerships with African nations, and Somaliland aims to capitalize on this approach.
Given Trump’s focus on pragmatic foreign policy and economic deals, Somaliland may find a receptive audience in his administration.
Recognizing Somaliland could provide the U.S. with a strategic foothold in the Horn of Africa, a region of increasing geopolitical competition between China, Russia, and Western nations.
Somaliland’s Economic and Political Resilience
Despite operating without international recognition, Somaliland has demonstrated remarkable economic resilience and political stability.
The government has invested heavily in infrastructure, trade, and security, ensuring continued growth despite diplomatic hurdles.
As global investors pour millions into Somaliland’s development, its leaders remain optimistic.
Berbera Port is poised to become a central trade hub for Africa, and recognition from the U.S. and other major powers would only accelerate this transformation.
For now, Somaliland is doing what it does best—thriving against the odds.
“Somaliland is one of the governments of the future,” Abdullahi confidently stated.
