Mar 24(Jowhar)-Djibouti President Ismaïl Omar Guelleh has officially launched “Salaam City,” a major urban housing development valued at $480 million, marking one of the largest privately-led residential projects in Djibouti.
The project, unveiled at a ceremony in the Nagad area of Djibouti City, will deliver more than 7,000 modern homes as part of a broader plan to address rising demand for quality housing and support the country’s urban expansion.
Developed by Salaam Real Estate, Salaam City is designed as a large-scale mixed-use “city within a city,” spanning approximately 2.4 million square metres. The masterplan includes key social and economic infrastructure such as seven schools, a hospital and healthcare facilities, a central mosque, commercial and office spaces, retail centres, and landscaped parks.
Speaking during the launch, President Guelleh described the initiative as a “critical step in improving living standards and advancing national development goals”. He emphasized that Djibouti’s progress should be measured by its ability to enhance the daily lives of its citizens through access to quality housing, job creation, and inclusive urban communities.
The project is expected to be implemented in phases over five years, with the first residents projected to move in by 2028. At peak construction, up to 2,000 workers are expected to be engaged across engineering, construction, and technical sectors, contributing to employment and economic activity.
According to project developers, Salaam City has been designed using sustainable urban planning principles, incorporating energy-efficient construction methods, eco-friendly materials, and green public spaces to promote a balanced and healthy living environment.
Financing for the development will combine private investment and Islamic financing support from Salaam African Bank, aimed at making home ownership accessible across different income levels. The project also presents investment opportunities for both local and international investors, including the Djiboutian diaspora.
Officials say the initiative aligns with Djibouti’s long-term development strategy, including its Vision 2035 plan, which focuses on economic diversification beyond its established strengths in ports, logistics, and trade.
Located near the strategic Bab el-Mandeb, one of the world’s busiest maritime corridors, Djibouti continues to position itself as a regional hub linking Africa, the Middle East, and global markets. Authorities believe large-scale developments such as Salaam City will play a central role in supporting that transformation while addressing the country’s growing urban needs.
