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The Economy of Somaliland largely relies on primary production and agriculture, where livestock is the main export of the country. Somaliland has a gross domestic product (GDP) of about US$2 billion.
The COVID-19 pandemic has restricted Somaliland's trade flows with decreased demand in the agriculture sector, a significant source of tax revenue..
Somaliland is located along the Gulf of Aden, near the entrance to the Bab al-Mandeb, a major sea-lane through which almost one-third of the world's shipping passes. Its location has helped the government attract new trade and development deals. In late 2016, the DP World announced that it would invest nearly US$450 million to manage and upgrade the Port of Berbera and develop a corridor running from the Port to the Ethiopian border. In 2021 the project was joined by the UK government's CDC Group which has doubled the funding.