President Guelleh Unveils $480 Million Salaam City Project

Djibouti Bets Big: President Guelleh Launches $480 Million “Salaam City”

DJIBOUTI CITY — In a bold push to tackle soaring housing needs amid brisk economic expansion, H.E. Ismail Omar Guelleh, President of the Republic of Djibouti, on Monday unveiled a $480 million residential venture known as “Salaam City.”

Driven by developer Salaam Real Estate, the project will convert a vast tract on the edge of Djibouti City into a contemporary urban center, which officials describe as among the nation’s most ambitious housing efforts to date.

At a ceremony in the Nagaad district, Guelleh toured freshly completed model homes before laying the foundation stone to kick off large-scale construction.

With an estimated cost of roughly 85 billion Djibouti Francs, the plan covers 2.4 million square metres and targets the delivery of more than 7,000 homes.

Envisioned as a self-sustaining community, Salaam City will feature schools, healthcare facilities, mosques, retail hubs and leisure areas, according to the developers.

“Djibouti is changing in ways people can feel,” said Mustafe Liban, general manager of Salaam Real Estate, citing new infrastructure and growing links with global markets. “Salaam City is designed to meet that moment.”

Positioned along the Red Sea, Djibouti has emerged as a logistics and trade gateway, drawing major investment into ports, rail and transport corridors. That momentum has intensified demand for quality housing, especially among urban professionals and an expanding middle class.

The development is set to serve a wide customer base, blending affordable, mid-range and premium units within one integrated locale.

Salaam African Bank will extend Islamic financing to facilitate purchases, its general manager, Jama Hirsi, said, emphasizing that credit access will be pivotal to the project’s uptake.

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

Authorities project that construction will create about 2,000 jobs, with initial move-ins anticipated by 2028.

The initiative aligns with Djibouti’s “Vision 2035” roadmap, which seeks to harness the country’s strategic location to sustain long-term growth.

In his remarks, Guelleh underscored that widening access to housing and generating employment are central to lifting living standards and reinforcing 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.

AXADLETM