Somaliland is optimistic that its new recognition by Israel could benefit its Berbera port, which has been undergoing significant transformation by the UAE-based company DP World. Over the past decade, Berbera has become a state-of-the-art facility on a crucial trade route, yet it still lags behind ports in Djibouti and Mombasa in container traffic. With port traffic reportedly increasing by 30% from 2023 to 2025, the anticipation of further growth comes as Somaliland seeks to establish stronger regional trade ties, particularly through a potential deal with neighboring Ethiopia.

However, amid ongoing regional conflicts, including missile strikes nearby, there are significant risks associated with this new partnership. While the port's director, Ali Diriye Ahmed, is optimistic that Ethiopian collaboration could raise traffic by up to 80%, the lack of response from the Ethiopian government leaves uncertainty. The geopolitical implications of Somaliland's newly recognized autonomy by Israel also raise questions about its safety and viability as a strategic logistics hub, potentially making it a target in an increasingly volatile environment.

The situation highlights the delicate balance Somaliland must navigate as it seeks to leverage international relationships for economic growth while contending with a rapidly changing security landscape. The dual-edged nature of this recognition from Israel presents an opportunity for growth but also the possibility of escalating tensions in the region, leading to challenges for both Somaliland and its investment partners.