DJIBOUTI — President Ismail Omar Guelleh on Monday led the groundbreaking for Salaam City, the largest residential development in Djibouti’s history, marking a significant step in the nation’s urban expansion.
The DJF 85 billion project, valued at approximately $480 million, is designed to reshape the capital’s landscape with more than 7,000 residential units. The development includes a mix of apartments and houses, ranging from spacious F5 units to functional F3 designs, integrated into a community ecosystem.
President Guelleh said the initiative is a direct investment in the well-being of the nation.
“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, President Guelleh said. “By expanding access to quality housing, generating employment opportunities and building modern, inclusive communities, initiatives like Salaam City invest in the well-being of our people and the future of our nation.”
The project is a flagship venture for Salaam Real Estate and the broader Salaam Group, which has rapidly expanded its footprint across East Africa and beyond. The group’s portfolio includes Salaam Bank Uganda, Salaam Investment Bank, Salaam Microfinance Bank in Kenya, and operations in South Sudan and Malaysia.
Mustafe Liiban, general manager of Salaam Real Estate, said the project aims to bridge the gap between modern housing needs and affordability.
“Salaam City is designed to make homeownership accessible and affordable for families across Djibouti”, Liiban said. “Our goal is to create a community where everyone can enjoy quality housing, modern amenities and a safe environment for their families to grow.”
The development will feature essential infrastructure, including schools, healthcare facilities, a central mosque, commercial areas and green spaces. To ensure sustainability, the construction will utilize energy-efficient materials and eco-friendly designs.
Beyond housing, the project is expected to be a major driver of economic activity.
Officials project a workforce of 2,000 people on site during peak construction periods, spanning the engineering, construction and technical sectors.
To facilitate homeownership, Salaam Real Estate partnered with Salaam African Bank to offer flexible financing solutions. The project is also open to international investors and members of the Djiboutian diaspora.
Jama Hersi, general manager of Salaam African Bank, said financial accessibility is the cornerstone of the development.
“This vision only works if finance runs through the entire project, Hersi said. Building houses is one thing; making them possible to own is another. Our role is to back this project from the ground up, from investment to financing, so that families don’t just see homes being built but have a real chance to buy one,” he said during the launch.
Salaam Real Estate develops real estate projects that support urbanization.
By structuring urban growth and creating a new residential center, local observers say, the project will meet help in Djibouti’s growing housing demand while supporting the country’s demographic and economic ambitions in a continent yearning for economic takeoff.
