Djibouti President Ismail Omar Guelleh on Monday led a ground breaking ceremony for Salaam City, a flagship development seen as a symbol of the country’s evolving urban identity.
The Guelleh led senior government officials and representatives from Salaam Real Estate during the launch, saying priority should be the “wellbeing of our people".
“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, creating jobs and building modern, inclusive communities, initiatives like Salaam City invest in the well-being of our people and the future of our nation,” Guelleh said.
Salaam City is part of the Salaam Group portfolio. The group is expanding its footprint across East Africa and beyond through ventures such as Salaam Bank Uganda, Salaam Investment Bank and Salaam Microfinance Bank in Kenya.
The group also operates in South Sudan and Malaysia and holds a majority stake in Takaful Insurance.
Planned as a fully integrated community, Salaam City will comprise more than 7,000 residential units, including apartments and standalone homes.
The development blends modern urban living with sustainability, incorporating energy-efficient construction, eco-friendly materials and expansive green spaces.
It will also feature key social amenities such as schools, healthcare facilities, a central mosque, commercial centres and recreational areas.
The project adopts an inclusive approach by combining competitively priced housing with flexible financing solutions developed in partnership with Salaam African Bank. It also opens up investment opportunities for local and international investors, including the Djiboutian diaspora.
“Salaam City is designed to make homeownership accessible and affordable for families across Djibouti. Our goal is to create a community where everyone can enjoy quality housing, modern amenities and a safe environment for their families to grow,” said Mustafe Liiban, the general manager of Salaam Real Estate.
On his part, Jama Hersi, the General Manager of Salaam Africa Bank, said competitive financing remains central to the project’s success.
“This vision only works if finance runs through the entire project. 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,” Hersi said.
As Djibouti cements its position as a regional economic and logistics hub, sector experts say the project aligns with its broader vision for modernization and urban growth. It is expected to ease housing demand while supporting the country’s demographic and economic aspirations.
The development is also projected to generate significant economic activity, with up to 2,000 workers expected on site at peak construction across engineering, construction and technical fields.
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.
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