Somaliland says Israel’s recognition of its independence could significantly boost activity at the strategic Berbera Port, but escalating conflict in the Middle East has also raised fears the facility could become a military target. Located on the Gulf of Aden, Berbera Port sits along one of the world’s busiest maritime trade routes linking Europe, the Middle East and Asia. Over the past decade, Dubai-based logistics giant DP World has modernized the port, expanding container capacity, upgrading cranes and improving road links to neighboring Ethiopia.
Although Berbera still handles fewer containers than regional hubs such as Djibouti and Mombasa, traffic increased by 30 percent between 2023 and 2025, according to port authorities. Ali Diriye Ahmed, director of the Berbera Port Authority, says a pending trade agreement with landlocked Ethiopia—home to more than 130 million people—could drive volumes up by a further 80 percent. Israel recently became the first country to formally recognise Somaliland since it declared independence from Somalia in 1991. Somaliland officials say the diplomatic breakthrough could unlock new investment and trade flows. Ahmed described the potential impact as a “tremendous increase” and confirmed plans for further port expansion.
However, recognition has also intensified security concerns. Abdel Malek al-Houthi, head of Yemen’s Iran-backed Houthi movement, warned that any Israeli presence in Somaliland would be treated as a “military target.” The Houthis have previously targeted shipping lanes in the Red Sea and Gulf of Aden amid regional hostilities. The United Arab Emirates, which operates Berbera Port through DP World and maintains an expanded military base nearby, has itself faced missile threats in recent regional confrontations. Diplomats and analysts suggest the UAE played a key role in facilitating Israel’s recognition and speculate that Israeli security cooperation in Berbera may already be under way, though no official confirmation has been provided.
Security risks may not only come from the Middle East. Al-Shabaab, the Somalia-based extremist group linked to al-Qaeda, has opposed any potential Israeli presence in Somaliland, raising fears of local militant attacks. Despite the risks, authorities in the port city of Berbera, home to about 70,000 people, remain optimistic. Mayor Abdishakur Mohamoud Hassan says port revenues have boosted municipal finances, funded free primary education and improved healthcare services. He believes international recognition could transform the city into a regional commercial hub. Somaliland’s Minister of the Presidency, Khadar Hussein Abdi, insists any partnership with Israel is not aimed at provoking conflict. “Somaliland wants to contribute to peace in the region,” he said. As diplomatic momentum builds, Berbera’s future now hinges on whether economic opportunity can outweigh the growing security risks in an increasingly volatile region.
