President Ismaïl Omar Guelleh on Monday launched Salaam City, a massive $480 million mixed-use development featuring over 7,000 homes across 2.4 million square metres – the largest private residential project ever undertaken in Djibouti.
At the Nagad site launch ceremony, the President toured three completed model homes and laid the first stones to mark the start of main construction. The “city within a city” will include seven schools, a hospital, central mosque, commercial spaces, retail, parks and recreational areas, blending affordable, middle-income and premium housing for families and professionals.
Mustafe Liibaan, General Manager of developer Salaam Real Estate, said the project responds to surging housing demand as Djibouti cements its role as a regional logistics hub. “Djibouti is changing in ways people can feel… Salaam City creates not just homes, but an inclusive community where families can enjoy quality housing, modern amenities, and a safe environment.”
The five-year, phased development – financed through developer equity and Salaam African Bank’s Sharia-compliant financing – expects first residents by 2028. Peak construction will mobilize up to 2,000 workers across engineering, building and technical sectors, injecting significant economic activity.
Djama Hersi, General Manager of Salaam African Bank, emphasized accessible homeownership: “Our role is to back this project from the ground up, from investment to financing, so families don’t just see homes being built but have a real chance to buy one.”
Designed with sustainable urban principles – energy-efficient buildings, eco-friendly materials and extensive green spaces – Salaam City aligns with Djibouti’s Vision 2035 diversification strategy. Strategically located near the Bab el-Mandeb strait, the project supports the nation’s emergence as a gateway linking Africa, the Middle East and global trade routes.
President Guelleh hailed the initiative as a direct investment in citizen wellbeing: “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.”
