Djibouti’s New Horizon: President Guelleh Unveils $480 Million "Salaam City"

DJIBOUTI CITY —  H.E. Ismail Omar Guelleh, President of the Republic of Djibouti, on Monday launched a $480 million residential project dubbed “Salaam City,” as Djibouti steps up efforts to meet rising housing demand driven by rapid economic growth.

The development, led by Salaam Real Estate, is set to transform a vast area on the outskirts of Djibouti City into a modern urban hub, in what officials describe as one of the country’s largest housing initiatives.

Speaking at an inauguration ceremony in the Nagaad district, Guelleh inspected newly completed model homes and laid the foundation stone for the main construction phase.

Valued at around 85 billion Djibouti Francs, the project will span 2.4 million square metres and is expected to deliver more than 7,000 housing units.

Developers say Salaam City is designed as a self-contained mini-city, incorporating schools, healthcare facilities, mosques, commercial centres and recreational spaces.

“Djibouti is changing in ways people can feel,” said Mustafe Liban, general manager of Salaam Real Estate, pointing to expanding infrastructure and growing international connectivity. “Salaam City is designed to meet that moment.”

The Horn of Africa nation has positioned itself as a key logistics and trade hub along the Red Sea, attracting significant investment in ports, railways and transport networks. That growth has fuelled demand for modern housing, particularly among urban professionals and a rising middle class.

Salaam City aims to cater to a broad demographic, offering a mix of affordable, mid-range and high-end housing within a single integrated community.

Salaam African Bank will provide Islamic financing options to support home ownership, its general manager, Jama Hirsi, said, stressing that access to finance would be critical to the project’s success.

“Building houses is one thing. Making them possible to own is another,” he said, adding that the bank would support both developers and prospective buyers.

Authorities estimate the construction phase will generate around 2,000 jobs, with the first residents expected to move in by 2028.

The project forms part of Djibouti’s broader “Vision 2035” development strategy, which aims to leverage the country’s strategic location to drive long-term economic growth.

In his address, Guelleh said expanding access to housing and creating employment opportunities were essential to improving living standards and ensuring stability.

“Djibouti’s development should be measured not only by the scale of its ambitions, but by its ability to improve the daily lives of its citizens,” he said.

GAROWE ONLINE