Somaliland Eyes Trade Deal With Israel Following Recognition

HARGEISA, Somalia – Somaliland says it expects to reach a trade agreement with Israel soon, the first country to recognize its independence, and is willing to offer rights to valuable natural resources as part of the deal, President Abdirahman Mohamed Abdullahi told Reuters.

Israel formally recognized Somaliland, a self-declared independent region in northern Somalia, in late December. Israeli Prime Minister Benjamin Netanyahu has said the country will seek immediate cooperation in agriculture, health, technology, and the economy.

Speaking to Reuters via video link from Dubai, where he was attending the World Government Summit, Abdullahi said no bilateral economic deal has yet been reached, but Somaliland expects to sign a “partnership agreement.”

“At the moment, there is no trade, and there is no investment from Israel. But we are hoping 100% for their investment, their trade, and hopefully we will engage soon with Israeli businesspeople and government,” he said.

Abdullahi added, “Somaliland is very rich in resources – minerals, oil, gas, marine, agriculture, energy, and other sectors. We have meat, fish, and minerals, and they need them. So trade can start from these main sectors.”

He said Somaliland would also seek access to Israeli technology.

Somaliland’s mineral resources include vast lithium deposits, critical for batteries and electric vehicles. In 2024, Saudi mining company Kilomass secured an exploration deal in Somaliland for lithium and other strategic minerals.

Abdullahi thanked Israel for being the first country to recognize Somaliland. While the region hopes for future military cooperation with Israel, Abdullahi said establishing Israeli military bases has not yet been discussed.

He accepted an invitation from Netanyahu to visit Israel, though no date has been set. Israeli Foreign Minister Gideon Saar visited Somaliland last month.

Abdullahi said he expects other U.N. member states, including the United Arab Emirates and the United States, to eventually follow Israel’s lead, noting that recognition typically takes time.

He also said he has a good working relationship with the United States and believes President Donald Trump will “someday” recognize Somaliland. Last month, Abdullahi pitched investment deals at a dinner in Davos attended by Trump’s son, Eric.

Israel’s recognition of Somaliland has angered Somalia and drawn criticism from China, Turkey, Egypt, and the African Union.

Somaliland also cooperates with the UAE, with DP World a major investor in the port of Berbera. Abdullahi said the UAE has not yet made an official decision but is expected to recognize Somaliland.

“The Saudi government is also expected to make a similar investment in Somaliland,” he said.

— Garowe Online