Somaliland’s Investment Climate: A Land of Opportunity
- Somaliland has been attracting increasing foreign interest. How would you describe the current investment climate?
DG Dualeh: Somaliland is open for business—unrestricted and ready to welcome investors. Unlike many African nations, we impose no prohibitive barriers on foreign ownership. Whether in agriculture, manufacturing, energy, or logistics, investors enjoy full repatriation of profits, access to industrial land, and government support at every stage.
Our political stability, customs-friendly policies, and strategic location near the Red Sea make us a prime destination. The government is actively working to streamline bureaucracy, ensuring that investors face minimal delays in licensing and operations.
- Are there specific incentives for foreign investors?
DG Dualeh: Absolutely. We offer:
– Tax holidays (up to 5 years for large-scale industries)
– Duty-free importation of machinery and raw materials
– Allocation of industrial land at competitive rates
– Fast-track business registration (within 48 hours for some sectors)
Additionally, Berbera Port’s expansion (managed by DP World) and the Berbera Corridor linking Ethiopia provide unmatched logistics advantages.
Industrial Zones & Key Growth Sectors
- Where are Somaliland’s industrial zones located, and what sectors are prioritized?
DG Dualeh: We have two major industrial zones:
1. Berbera Economic Zone – Focused on logistics, warehousing, and export processing, leveraging the port’s expansion. It is 7.8km Square with the Free zone (Planned to be the Industrial Zone)
2. Maroodijeex – Targeting manufacturing, agro-processing, and light industries, specializing in livestock, dairy, and crop processing etc. in the Maroodijeex Region and planned to be the Industrial Zone.
Key growth sectors include:
– Agriculture & Livestock (Somaliland’s biggest export sector)
– Mining (gemstones, gypsum, hydrocarbons)
– Renewable Energy (solar and wind projects)
– Manufacturing (textiles, plastics, construction materials)
- How does Somaliland ensure investor security, given regional instability?
DG Dualeh: Somaliland is peaceful and secure—we have our own military, police, and legal systems. We’ve maintained stability for over 30 years, unlike neighboring countries. The government also offers investment protection agreements and dispute resolution mechanisms to safeguard businesses.
Financial Markets & Islamic Finance Solutions
- Does Somaliland have a stock market or sovereign bonds?
DG Dualeh: Not yet, but the new administration is prioritizing financial sector development. Plans include:
– Establishing a commercial bank to facilitate large-scale investments.
– Introducing Islamic bonds (Sukuk) for infrastructure projects.
– Creating diaspora investment channels, allowing Somalilanders abroad to fund national development.
Currently, all banking is Sharia-compliant, meaning no interest (riba) is involved. Instead, we use profit-sharing models (Mudarabah) and leasing agreements (Ijarah).
Q: As Somaliland is looking to establish commodity exchange and stock market. Would you like International Companies of other Islamic Countries like BMG Financial Group from Saudi Arabia, Enrichers Investment Group from Pakistan etc.?
As Somaliland looks toward establishing a commodity exchange and stock market, we would certainly welcome collaboration with international companies from other Islamic countries like you mentioned. (BMG Financial Group (Saudi Arabia), Enrichers Investment Group (Pakistan), and others)
At present, trade in Somaliland primarily operates through traditional and Shariah-compliant models. However, the current government is actively exploring the development of a commercial banking system, as well as financial instruments such as bonds and exchanges, to attract diaspora investments and support key infrastructure projects.
We are fully open to engaging with international firms, investors, and experts. As we are still in the development phase, knowledge transfer and technical assistance from experienced partners would be immensely valuable. Any support in building a robust and inclusive financial ecosystem will be greatly appreciated.
- Are there plans for a commodity exchange?
DG Dualeh: Yes. We’re working on a livestock and agricultural commodity exchange to formalize trade, stabilize prices, and attract regional buyers. This will integrate with Djibouti and Ethiopian markets.
Upcoming Investment Conferences & International Outreach
- Will Somaliland host investment forums?
DG Dualeh: Yes! We’re organizing the Somaliland International Investment Conference in late 2025, targeting Gulf, East African, and Western investors. Additionally, we’re:
– Launching an investment portal with sector reports and registration tools.
– Participating in global summits (Dubai, Turkey, Kenya) to promote opportunities.
– Engaging diaspora communities in the UK, US, and Scandinavia.
Regional Partnerships & Strategic Developments
- Is Somaliland negotiating with Ethiopia or South Sudan on trade routes?
DG Dualeh: Ethiopia already uses Berbera Port as its second-largest trade corridor. We were in talks with South Sudan for a similar arrangement—offering lower tariffs than Djibouti and faster clearance times.
Additionally, discussions are ongoing with DP World, UAE firms, and Turkish investors on port expansions, renewable energy projects, and free zones.