Investing in Somalia: what flows in, where, and the rules

How much is invested

Foreign direct investment (FDI) rose to $880 million in 2025, about 7 percent of GDP, up from $765 million in 2024. The Central Bank says investors were mainly interested in telecommunications, financial services, energy and real estate (Central Bank of Somalia, Annual Report 2025).

Spending on buildings, machines and equipment reached about 26 percent of GDP in 2025, led by imports of machinery and by construction (same source).

Somali banks are investors too: they held $215 million in company shares and $128 million in property investments in 2025 (same source).

Who invests from outside

• Gulf and Turkey: a Turkish company, Albayrak, runs and has modernised Mogadishu port (Anadolu Agency). DP World of Dubai expanded Berbera port under a $442 million joint venture agreed with Somaliland (Gulf News).
• Development finance: the IFC has worked in Somalia since 2015 (SONNA). Norfund committed $10 million in 2018 to a fund for small Somali businesses (The East African), and Swedfund invested $5 million in 2023 (AVCA).
• Somalia's own development bank: the Somalia Development and Reconstruction Bank announced its first investment in September 2026 (Dawan Africa).

The rules for investors

• Ownership: foreign investors may register a fully owned Somali company without a local partner, and may set up a single-director company, according to SOMINVEST, the federal investment promotion office (SOMINVEST, via 3E Accounting).
• Registration: companies register online with the Ministry of Commerce and Industry at ebusiness.gov.so (Radio Muqdisho). See How to start and register a business.
• Finance laws: a revised Financial Institutions Law (May 2025) and a Takaful (Islamic insurance) Law were passed in 2025 (Central Bank of Somalia, Annual Report 2025).
• Somaliland has its own investment and company rules.

The stock exchange

The National Securities Exchange of Somalia (NSES) was inaugurated in Mogadishu on 19 June 2025. It plans to list shares and sukuk (Islamic bonds), with telecoms and energy firms expected among the first listings (Khusoko). Officials aimed for at least 10 listed firms within two years (Daba Finance). By May 2026 trading had not yet begun, and the national news agency warned of unregulated private share sales in the meantime (SONNA).

What has changed for investors

• Debt relief in December 2023 cut foreign public debt to $1.5 billion by 2025 (Central Bank of Somalia).
• Trade blocs: Somalia joined the East African Community in 2024 and ratified the African Continental Free Trade Area in 2026 (EAC; Dawan Africa).
• Payments: instant bank payments and the national QR code standard launched in 2025 (Central Bank of Somalia).

The risks

The IMF lists more severe climate shocks, renewed regional conflict, further aid cuts and domestic challenges as the main risks. It also says stronger anti-money-laundering rules are needed to win new correspondent banks, the foreign banks that move international payments (IMF, 5 October 2026). Growth is forecast at 2.3 percent in 2026 (same source). The economy runs mostly on US dollars, and a new Somali shilling is still being prepared (Central Bank of Somalia).

Where to look further

The federal investment promotion office SOMINVEST publishes sector guides and procedures for investors (sominvest.gov.so). The Central Bank publishes lists of licensed banks and financial firms (centralbank.gov.so).