The economy of Somaliland largely relies on primary production and agriculture, where livestock is the main export of the country, which it ships to neighbouring Djibouti and Ethiopia, as well as to Gulf states, such as UAE, Saudi Arabia and Oman.

[6] Somaliland is located along the Gulf of Aden, near the entrance to the Bab al-Mandeb, a major sea-lane through which almost one-third of the world's shipping passes.

As a result, the government relies mainly upon tax receipts and remittances from the large Somali diaspora, which contribute immensely to Somaliland's economy.

Local and municipal governments have been developing key public service provisions such as water in Hargeisa and education, electricity, and security in Berbera.

Sheep, camels, and cattle are shipped from the Berbera port and sent to Gulf Arab countries, such as Saudi Arabia.

Mining also has potential, though simple quarrying represents the extent of current operations, despite the presence of diverse quantities of mineral deposits.

[26] The rock art and caves at Laas Geel, situated on the outskirts of Hargeisa, are a popular local tourist attraction.

The Naasa Hablood are twin hills located on the outskirts of Hargeisa that Somalis in the region consider to be a majestic natural landmark.

The historic town of Sheikh is located near Berbera and is home to old British colonial buildings that have remained untouched for over forty years.

[32][33] In 2021 the project was joined by the UK government's CDC Group which has doubled the funding, making Berbera a $1 billion investment.

[34] Genel Energy is set to drill exploration well for SL-10B and SL-13 block in Buur-Dhaab 20 kilometers northwest of Aynabo by the end of 2018.