The region is rich in minerals, oil and gas, fisheries, and other resources. However, its strategic location makes it even more attractive to international powers. In terms of sea routes that are important for world trade, especially oil, Somalia and Somaliland are very close to the Red Sea and the Gulf of Aden. In addition, the situation has been further complicated by the attacks by the Houthis on some ships across the Red Sea in support of the Palestinian cause.

In exchange for a 50-year lease of a military base for the Ethiopian navy, Ethiopia will become the first foreign country to officially recognize Somaliland.