Djibouti, officially known as the Republic of Djibouti, is a country in the Horn of Africa, bordered by Somalia to the south, Ethiopia to the southwest, Eritrea in the north, and the Red Sea and the Gulf of Aden to the east. The country has an area of 23,200 km².
Lying on the Bab el-Mandeb Strait, the tiny African nation of Djibouti serves as a gateway to the Suez Canal, one of the world’s busiest shipping routes. The port is the lifeblood of its economy, providing the biggest source of income and employment in the country. Djibouti’s proximity to restive areas in Africa and the Middle East is geo-strategically positioned, and its relative stability has made it a prized location for a steady flow of foreign investment and assistance.
Djibouti’s strategic importance is derived from its geographical location at the southern entrance to the Red Sea and the Bab el-Mandeb strait, a critical chokepoint for international shipping. This makes Djibouti a focal point for commercial trade. With a coastline that stretches along the Gulf of Aden and the Red Sea, Djibouti has evolved into a gateway for trade entering and exiting the African continent. Its state-of-the-art Doraleh Container Terminal, managed by the state-owned Ports & Free Zones Authority, has become a linchpin of global shipping, handling goods bound for East Africa, the Arabian Peninsula, and beyond. Additionally, the recently inaugurated Djibouti International Free Trade Zone has attracted investors looking to capitalize on its strategic location.