Djibouti

Djibouti is a small, strategically located economy at the mouth of the Red Sea whose wealth comes not from resources — it has almost none — but from its ports and its position on one of the world's busiest shipping lanes.

It has leveraged its location into a hub for trade, especially for landlocked Ethiopia, and as a base for foreign militaries, who pay substantial rents.

Key Sectors

The economy is dominated by port and logistics services, the transit trade for Ethiopia, and rents from foreign military bases (American, French, Chinese, and others), with little agriculture or industry.