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Located along a strategic international trade route connecting Africa, the Middle East, Europe and Asia, Djibouti’s economic development has been linked with rising global commerce. In order to fully harness its geographic advantages and maintain its competitiveness, the country is now focusing on infrastructure improvements and a gradual diversification of its economy. While growth rates over recent years attest to the fact that the country’s position as a center for international commerce can be leveraged successfully, maintaining this level of economic development will depend on how its infrastructure programme is implemented. The ongoing expansion of transport networks and facilities will need to be coupled with careful management of Djibouti’s fiscal position. This chapter contains interviews with Ilyas Moussa Dawaleh, Minister of Economy and Finance; Mahdi Darrar Obsieh, Director, Djiboutian Investment Promotion Agency; and Youssef Dawaleh, President, Chamber of Commerce of Djibouti; and a dialogue between Hikmat Daoud, Chairman, National Confederation of Djiboutian Employers; and Djama Aouled, Chairman, Federation of Djiboutian Corporations.

A rich and diverse offering provides strong potential Expected peace settlement set to boost the sector International brands move in as new hotels spring up Significant growth in the medical tourism industry

Bringing laws in line with international standards Income tax for residents is set on a sliding scale A new wealth tax has recently been introduced Double tax treaties in force with numerous countries

Sector to see greater range of treatments available Government looking to improve insurers’ performance Price controls to contribute to lowering overall costs Restructuring of major segment entities under way

Increased access to schooling in rural regions Technology plays a leading role in sector growth Foreign language education takes on new urgency Public universities growing in popularity