Somaliland offers a strategic location connecting Africa, the Middle East, and Asia. Its stable governance and investor-friendly policies make it one of the Horn of Africa’s most promising emerging markets. Explore the official reports below to learn more about investment opportunities and the legal framework guiding business operations in Somaliland.
Somaliland Investment Guide
A comprehensive guide highlighting investment opportunities, economic sectors, infrastructure growth, and procedures for starting a business in Somaliland.
Somaliland Investment Law
The official legal framework that governs domestic and foreign investments, detailing investors’ rights, guarantees, and regulatory procedures.
Priority Sectors
Priority Sector
Agriculture & Livestock
The backbone of Somaliland’s economy — it contributes 30–45% of the GDP.
Livestock exports reach 2.35M animals annually through Berbera Port, valued at USD 160M — mostly to Saudi Arabia (78%).
Opportunities: Meat, dairy, and leather processing; animal health and feed production; expansion of agro-processing industries (dairy, grains, frankincense, etc.).
Incentives: Tax holidays (3–5 years), customs exemptions, and land facilitation for qualifying investors.
Priority Sector
Fisheries & Marine Resources
Somaliland’s 850 km Gulf of Aden coastline hosts over 600 marine species, including 400 commercial fish types.
Despite vast potential, current production is less than 2% of the sustainable catch.
The sector’s sustainable catch is estimated between 90,000–120,000 MT/year, valued at USD 32 million. Somaliland’s fishing industry has immense potential for export-led growth if supported with modern facilities, cold chain systems, and foreign investment.
Opportunities: Fish processing and cold storage, boat building, fisheries jetties, canning, and fish meal industries.
Domestic Coastal Catch Types: Emperors (37%), Rays (17%), Snapers (10%), Grunts (201%), Goatfishes (8%), Sardines and Herrings (6%), and Grouper (12%).
Domestic Highly Migratory Catch Types: Sharks(61%), Tuna (17%), Mackerel (14%), Dolphinfishes (4%), and Billfishes (4%).
Priority SectorMineral Resources
Industrial mineral exports (last 5 years): ~4,000 tonnes. Total gemstone exports (last 5 years): ~11,000 kg. Somaliland’s geology offers diverse mineral potential, including base metals, precious stones, and industrial minerals across multiple regions.
Overview: Somaliland hosts rich deposits of copper, gold, gypsum, magnetite, lead, and gemstones like emerald and jade. Most operations are artisanal or small-scale, with increasing exploration by private investors.
Priority Sector
Oil & Gas
Somaliland’s sedimentary basins hold significant hydrocarbon potential, with geological structures similar to proven oil basins in Yemen and Ethiopia. The sector is open for foreign investment in exploration, midstream, and downstream operations.
Key basins: Berbera, Oodweyne, and Nugaal. Exploration is led by firms such as Genel Energy, RAK Gas, Chevron, and Horn Petroleum. Somaliland’s petroleum policy provides attractive fiscal terms through Production Sharing Agreements (PSAs).
Opportunities: Joint ventures in exploration and production, refining, and petroleum logistics.
Incentives: Tax holidays, 100% foreign ownership, and repatriation of profits under the Somaliland Petroleum Act.
Priority Sector
Energy & Renewables
Focused on solar and wind energy to reduce import dependency and power Somaliland’s growing economy.
Somaliland receives over 3,000 hours of sunshine annually with solar irradiance averaging 5–7 kWh/m²/day. Wind energy potential is estimated at 30,000–45,000 MW of onshore capacity, with favorable wind conditions in about 85% of the country.
Opportunities: Development of off-grid solar systems, hybrid wind-solar farms, and energy-efficient technologies for industry and households.
Incentives: Import tax exemptions for renewable equipment and access to public–private partnerships for large-scale energy infrastructure.
Priority Sector
Manufacturing & Industrialization
Over 56 operational industries nationwide, with 98% in secondary manufacturing (assembly from imports).
Growth concentrated in Maroodi-jeex (Hargeisa) and Berbera. The government supports Industrial Development Zones (IDZs) to expand production and exports.
Opportunities: Agro-processing, textiles, logistics, and packaging industries within designated IDZs. Strategic locations include Hargeisa (9 km²), Berbera (7.8 km²), and Burco (25 km²).
Incentives: Industrial tax holidays, customs exemptions, and access to port and energy infrastructure.
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