Mogadishu, Somalia – For years, Mogadishu’s name evoked images of conflict and devastation – a city synonymous with instability, struggling to reclaim its past.
But walk through its bustling streets today, and a different narrative unfolds.
Skyscrapers tower over once-ruined districts, restaurants and cafés buzz with conversation, and an emerging class of entrepreneurs is turning the Somali capital into an unexpected investment hub.
Largely fueled by local businessmen’s capital, real estate expansion, and a thriving tech sector, Mogadishu is undergoing an economic renaissance that many, even its own residents, did not foresee.
“Few years ago, you wouldn’t see many high-rise buildings in the city,” says Ahmed Nor, a high-end properties developer.
“Now, developers are racing to secure prime land for commercial and residential projects. It’s unprecedented.”
The city’s transformation has been driven in part by Somali expatriates returning home with capital and ideas.
After decades in Europe, North America, and the Gulf states, many members of the Somali diaspora see an opportunity in their homeland’s economic rebirth.
One of them is Fawzia Ahmed, a British-Somali entrepreneur, who recently launched a luxury apartment complex in the city.
“I never imagined investing here,” she says.
“But the market demand is huge. People are looking for quality housing, office spaces, and modern shopping experiences. The risk is quite minimal there, but the rewards are too.”
THE REAL ESTATE BOOM
Nowhere is this change more evident than in Mogadishu’s real estate sector, which has seen property prices skyrocket in recent years.
According to a 2024 market analysis by the Somali Chamber of Commerce, land prices in some parts of the city have doubled in the last five years.
“Infrastructure projects are key,” says Ali Warsame, a city planner working on new urban development zones.
“Roads, electricity, and internet access are improving, which is encouraging more investors to build.”
The skyline now features glass-paneled offices, five-star hotels, and shopping malls, catering to a growing middle class and an influx of international businesses.
Developers are also targeting diaspora returnees, offering gated communities with security and modern amenities.
However, the surge in investment is not without challenges.
Corruption, land disputes, and a lack of clear property rights have led to legal battles over ownership.
Experts warn that without stronger regulations, the sector’s growth could outpace its ability to remain sustainable.
A TECH-DRIVEN FUTURE
Beyond real estate, Mogadishu is making strides in technology and digital finance.
With one of the world’s highest mobile money penetration rates, Somalia has become a pioneer in cashless transactions.
“This is what makes Somalia unique,” says Hassan Mohamed, founder of a local fintech startup.
“We skipped traditional banking and went straight to mobile payments. Now, we’re seeing the rise of tech incubators and e-commerce startups.”
Since 2023, the first Somali innovative startup accelerators, have been launched with backing from investors in Dubai and London.
Young entrepreneurs are developing apps for ride-hailing, e-commerce, and logistics, reflecting a generation eager to redefine the country’s economic future.
Yet, tech founders face hurdles – from security concern and at times internet access that limit investor confidence.
“Scaling a startup here is different from Silicon Valley,” Mohamed admits. “But the potential is enormous.”
INVESTMENT IN A FRAGILE ENVIRONMENT
Despite the progress, Mogadishu’s business boom remains fragile.
Security concerns persist, with sporadic attacks from Al-Shabab insurgents threatening confidence in long-term stability.
Over the past two years, Mogadishu has witnessed notable security improvements, with authorities intensifying intelligence operations and preventive measures. Many believe these efforts have played a key role in the sharp decline in attacks, particularly those orchestrated by al-Shabab.
“It’s fair to say terror incidents have nearly disappeared. The group is struggling to infiltrate the city,” says a senior police officer in Mogadishu.
As security conditions improve, business owners are increasingly confident, operating in what they see as a less risky environment. However, concerns remain over rising political tensions, which could introduce new uncertainties.
“There’s no denying the risks,” says Ali Isse, an economist specializing in Somali markets.
“But we’re seeing a pattern—investors who understand Somalia’s unique challenges are willing to take those risks because the returns are significant.”
International investors are also taking notice.
The UAE, Turkey, and China have all expanded economic ties with Somalia, investing in infrastructure, ports, and energy projects.
A CITY IN TRANSITION
As Mogadishu reinvents itself, the question remains: Is this boom sustainable?
Economists warn that without long-term stability, regulatory frameworks, and inclusive policies, growth could slow.
Yet, for those on the ground, the optimism is real.
“This isn’t just about rebuilding a city,” says Ahmed, the entrepreneur.
“It’s about redefining Somalia’s future.”
For now, Mogadishu’s economic heartbeat is growing stronger – one skyscraper, one investment, and one local or returning entrepreneur at a time.
