Somaliland's economy is mainly dependent on primary production and agriculture, with livestock being the country's main export, which is exported to the neighboring countries of Djibouti and Ethiopia, as well as to the Gulf countries. , such as the UAE, Saudi Arabia and Oman. Somaliland has a GDP per capita of $1500, and the gross domestic product is $7,156,781,627 in 2022, most of which comes from remittances from Somalis working abroad. The spread of COVID-19 has restricted Somaliland's trade flow with reduced demand for agriculture, an important source of tax revenue.
Somaliland is located in the Gulf of Adam, near the entrance to the Bab al-Mandeb, a major sea passage through which almost one-third of the world's ships pass. Its location has helped the government attract new business and development deals. In late 2016, DP World announced that it would invest about 450 million US dollars to manage and develop Berbera Port and build a road connecting the port to the Ethiopian border. . In 2021 the project was joined by the UK government's CDC team which doubled the funding.

An overview

The Somaliland shilling, which cannot be easily bought outside of Somaliland due to the lack of national recognition, is managed by the Bank of Somaliland, a central bank that was constitutionally established in 1994.
Since Somaliland is not recognized, international donors have found it difficult to provide aid. Therefore, the government relies mostly on taxes and remittances from Somali diaspora, which contribute a lot to Somaliland's economy. Somaliland remittances go through remittances, the largest of which is Dahabshiil, which is one of the Somali remittances that uses the modern system of remittances. The World Bank has estimated that Somalia receives around 1 billion dollars in remittances from migrants working in the Gulf countries, Europe and the United States. Experts say that Dahabshiil may control almost two-thirds of that number, half of which reaches Somaliland alone.
Since the late 1990s, the provision of services has developed through government grants and limited contributions from non-governmental organizations, religious groups, the international community (especially the diaspora), and the private sector. increasing. The local government and local government have been developing important social services such as water in Hargeisa and education, electricity and security in Berbera. In 2009, Banque pour le Commerce et l'Industrie – Mer Rouge (BCIMR), based in Djibouti, opened a branch in Hargeisa, becoming the first bank to open in the country since the collapse of the Commercial and Savings Bank of Djibouti in 1990. Somalia. In 2014, Dahabshil Bank International became the first commercial bank in the region. In 2017, Premier Bank, which opened in Mogadishu, opened a branch in Hargeisa.
Various telecommunications companies also have branches in Somaliland. Telesom is one of the largest companies in Somaliland. This company, which was established in 2002, with the aim of providing the local market with communication services such as GSM, direct line and Internet access, has a wide network that includes all the major cities of Somaliland and more than 40 districts. of Somalia and Somaliland. Telesom also offers the cheapest international call rates of US$0.2. Other telecommunications companies operating in the region include Somtel, Telcom and NationLink.
Livestock is the backbone of Somaliland's economy. Sheep, camels and cows are imported from the port of Berbera and sent to the Arab Gulf countries, such as Saudi Arabia. The country has the largest livestock farm in the Horn of Africa, which is known as Seylad by Somalis, and 10,000 goats are traded daily between Burco and Yirowe farms, most of which are transported to the Gulf. governments passing through the port of Berbera. Livestock from all over the Horn of Africa are raised in this market.
Agriculture is generally seen as a viable industry, especially grain production and agriculture. Mining also has potential, although simple quarrying represents the scope of the current activities, although there are different quantities of minerals.