Somaliland eyes trade deal with Israel, offers access to minerals

Somaliland expects to reach a trade agreement with Israel in the near future and is willing to offer access to its mineral resources as part of a broader economic partnership, President Abdirahman Mohamed Abdullahi Irro told Reuters. Irro said no bilateral trade deal has yet been signed, but talks are underway and Somaliland anticipates concluding what he described as a “partnership agreement” soon.

“At the moment, there is no trade, and there is no investment from Israel,” Irro told Reuters. “But we are hoping 100% for their investment, their trade, and hopefully we will engage with the business people and the government of Israel soon.”

He said Somaliland was prepared to offer rights to valuable natural resources, including minerals, oil and gas — to attract Israeli investment. “Somaliland is a very rich country in resources — minerals, oil, gas, marine, agriculture and energy,” Irro said. “We have meat, we have fish, we have minerals and they need them. So, trade can start from these main sectors. The sky is the limit.”

The push comes amid growing global competition for critical minerals, as governments and industries race to secure supply chains for clean energy, electric vehicles and advanced technologies. Lithium, in particular, has become a strategic asset as demand surges for battery production worldwide. Somaliland officials say they are seeking to position the territory as a reliable and emerging trade partner by highlighting its untapped resource potential and relative stability in a volatile region. By offering access to minerals and other natural resources, Somaliland hopes to attract long-term investment.

Irro also said he maintains a “good working relationship with the United States” and expressed hope that President Donald Trump would “someday” recognize Somaliland, which declared independence from Somalia in 1991 but remains internationally unrecognized.

In late December, Israel became the first country to officially recognize Somaliland, marking a historic development in the Horn of Africa. The move was accompanied by the establishment of formal diplomatic ties between Tel Aviv and Hargeisa. Israel’s foreign minister, Gideon Sa’ar, visited Hargeisa and held talks with Irro, with both sides expressing optimism about cooperation in areas such as trade and agriculture.

For Somaliland, Israel’s recognition was widely seen as a diplomatic breakthrough after more than three decades of seeking international legitimacy.

Since Israel’s recognition, Somaliland has drawn increased international and regional attention, with renewed interest from regional actors seeking influence in the strategically located Horn of Africa. Somaliland officials say the heightened focus has underlined the Hargeisa’s growing geopolitical significance, particularly along key maritime routes in the Red Sea and Gulf of Aden. The developments have also contributed to diplomatic friction with neighboring Djibouti, and threats from Yemen’s Houthi, reflecting rising regional sensitivities linked to Somaliland’s emerging international profile.

The decision, however, sparked strong opposition from Somalia’s federal government, which rejected Israel’s move and reiterated that Somaliland remains an integral part of Somalia’s territory. Mogadishu sought support from key regional partners, including Turkey, Egypt and Djibouti, all of whom reaffirmed their backing for Somalia’s sovereignty and territorial integrity.

Adding to the controversy were reports suggesting Israel’s recognition was linked to plans to relocate Palestinians to Somaliland — claims echoed publicly by Somalia’s president. Somaliland officials have firmly denied the allegations, describing them as baseless. They insist that engagement with Israel is based on mutual economic interests and recognition of Somaliland’s sovereignty. However, Irro’s remarks reflect Hargeisa’s efforts to leverage its diplomatic ties with Israel to attract investment.