By Ougbad Nassir Omar

Somaliland stands at a pivotal juncture in its pursuit of full recognition and sustainable development. Its abundant natural, economic, and strategic resources offer immense potential to underpin national growth and enhance its international stature. However, the effective harnessing of these resources requires carefully calibrated instruments aligned with Somaliland’s capabilities and realities. This analysis outlines Somaliland’s resource base, evaluates current exploitation mechanisms, identifies avenues for improved use, and explores the intrinsic link between capability and international recognition as a national interest.

Somaliland is endowed with considerable natural and human capital resources, although these assets remain underexploited, limiting the region’s economic development and international recognition prospects. At the heart of Somaliland’s resource endowment is a wealth of natural minerals critical to the technological era. Complementing this is a large, well-established livestock sector, the backbone of the economy providing export earnings primarily to Gulf countries. Strategically, Somaliland’s 850-kilometer coastline along the Gulf of Aden, exemplified by the Port of Berbera, a crucial trade and logistics hub, enhances its regional economic relevance. Additionally, vast renewable energy potential through solar and wind power exists but remains underdeveloped.

Somaliland’s natural resource wealth includes significant deposits of gemstones such as emerald, ruby, sapphire, aquamarine, and topaz (Ministry of Investment and Industrial Development, 2025). The territory also contains gold, iron ore, tin, lead, gypsum, marble, mica, feldspar, quartz, and high-quality decorative stones. Geological surveys have identified potential reserves of manganese, platinum, copper, zinc, tantalite-columbite, nickel, chromium, lithium, uranium, and rare earth elements critical for modern technologies (Somaliland Ministry of Energy and Minerals, 2025). Offshore oil and gas prospects further complement these terrestrial minerals, alongside rich fishing zones along Somaliland’s strategic coastline by the Gulf of Aden (African Mining, 2023; Somaliland Ministry of Energy and Minerals, 2025).

On human capital, Somaliland has made strides in expanding access to education, vocational training, and healthcare services, focusing on quality teacher training and youth employment. However, infrastructural limitations and low school participation remain persistent challenges (Ministry of Education & Science, 2025).

Despite abundant resources, mining and energy sectors remain underdeveloped, with livestock exportation continuing as the primary economic driver. Mineral extraction is largely exploratory or small-scale, and the blue economy potential remains untapped due to inadequate infrastructure and investment (Ministry of Investment and Industrial Development, 2025; Danish Refugee Council, 2025). Human capital development efforts face systemic issues, including skill mismatches and informal economic dominance, with less than 10% of the economy formalized or private sector-driven (Danish Refugee Council, 2025).

The failure to fully exploit these resources largely results from Somaliland’s lack of international recognition, inhibiting access to foreign direct investment (FDI) and global assistance necessary for infrastructure and market expansion (Saxafi Media, 2025). Political uncertainty, weak regulatory frameworks, monopolistic economic structures, and global commodity market fluctuations have exacerbated utilization challenges (Saxafi Media, 2025; Danish Refugee Council, 2025).

Somaliland’s aspirations for international recognition are closely tied to its developmental capacity. Recognition would facilitate formal trade relations, access to international finance, and technology transfer necessary to develop the mining, energy, and maritime sectors (National Interest, 2025). Politically, Somaliland’s relative stability and strategic position near crucial maritime routes enhance its viability as a security and economic partner in the Horn of Africa. Recognition thus represents an enabling condition for exploiting its resource endowments fully and achieving economic diversification beyond livestock dependence (Senator Ted Cruz Press Release, 2025).

To optimize resource exploitation and fulfill national aspirations, Somaliland must broaden its diplomatic, economic, and institutional instruments. Expanding economic diplomacy to multilateral forums can deepen trade relations and attract diverse investments, enhancing Somaliland’s visibility and legitimacy on the global stage (Somaliland Ministry of Foreign Affairs, 2025). Strategic diplomatic efforts should emphasize Somaliland’s critical mineral resources’ role in international supply chains, framing recognition efforts around shared sustainable development goals (ISIR Institute, 2023).

Strengthening diaspora engagement through formal investment channels could infuse much-needed capital and expertise (Somaliland Ministry of Foreign Affairs, 2025). Institutional reforms focusing on regulatory clarity, environmental safeguards, and labor rights will build investor confidence and align Somaliland with global best practices (ISIR Institute, 2023). Developing reliable financial infrastructure, including formal banking and credit access is crucial to lowering barriers for domestic entrepreneurship and industrial growth (Somaliland Economic Forum, 2024).

Furthermore, partnerships with technologically advanced nations can build capacity for resource exploration, management, and sustainable utilization (Moderndiplomacy.eu, 2025).

A robust national capability grounded in effective governance, security, and resource management remains inseparable from Somaliland’s core interest in international recognition.

Recognition would unlock international aid, formal diplomatic ties, and investment avenues necessary for fully realizing Somaliland’s resource potential and developmental goals (ISIR Institute, 2023). Concurrently, progress in governance and strategic resource exploitation enhances Somaliland’s case by demonstrating state functionality and responsible stewardship. This dynamic creates a virtuous cycle where capability improvement reinforces legitimacy, and recognition enables capacity expansion (Moderndiplomacy.eu, 2024).

References:

African Mining. (2023). The mysterious horn of Africa: Somalia, Somaliland and Puntland. https://www.africanmining.co.za/2023/05/01/the-mysterious-horn-of-africa-somalia-somaliland-and-puntland/ 

Danish Refugee Council. (2025). Labour market analysis Somaliland. https://drc.ngo/media/japkaaka/labour-market-analysis-somaliland.pdf 

Ministry of Education & Science. (2025, February 10). Human capital development plan. Somaliland Ministry of Education & Science. https://moe.govsomaliland.org/article/human-capital-development-plan-1 

Ministry of Investment and Industrial Development. (2025). Priorities. Somaliland Ministry of Investment and Industrial Development. https://moiid.govsomaliland.org/article/priorities-moip 

Somaliland Ministry of Energy and Minerals. (2025, August 8). Somaliland Ministry of Energy and Minerals. https://moem.govsomaliland.org 

National Interest. (2025, June 30). Why the Trump administration should recognize Somaliland. https://nationalinterest.org/feature/why-the-trump-administration-should-recognize-somaliland 

Senator Ted Cruz Press Release. (2025, August 13). Sen. Cruz calls for U.S. recognition of Somaliland. https://www.cruz.senate.gov/newsroom/press-releases/sen-cruz-calls-for-us-recognition-of-somaliland 

Saxafi Media. (2025, January 31). Somaliland: A key player of stability, economic opportunity, and strategic importance. https://saxafimedia.com/somaliland-key-player-stability-economic-strategic/ 

ISIR Institute. (2023). Somaliland’s foreign policy reset: Turning challenges into opportunities [Working paper]. https://isirthinktank.com/wp-content/uploads/2024/12/Somaliland-Policy-Brief-Reset.pdf 

Moderndiplomacy.eu. (2024, July 3). A legal and diplomatic analysis of Somaliland’s quest for international recognition. https://moderndiplomacy.eu/2024/07/04/a-legal-and-diplomatic-analysis-of-somalilands-quest-for-international-recognition/ 

Moderndiplomacy.eu. (2025, March 17). Somaliland’s diplomatic gamble: Recognition, risk, and the Palestinian question. https://moderndiplomacy.eu/2025/03/19/somalilands-diplomatic-gamble-recognition-risk-and-the-palestinian-question/ 

Somaliland Economic Forum. (2024, February 5). 2023 Somaliland economic forum report. https://sef.govsomaliland.org 

Somaliland Ministry of Foreign Affairs. (2025, February). Economic diplomacy [PDF]. https://web.mfa.gov.so/wp-content/uploads/2025/02/Economic-Diplomacy.pdf 

Ougbad Nassir Omar

Director, Diaspora Department

Ministry of Foreign Affairs & International Cooperation

The Republic of Somaliland