The foreign investors have started investing in Djibouti in big volume since the year 2001. The private sectors from Europe and the USA have invested an excess of 200 million dollars in Djibouti since that period. The major factors that attract the private sectors towards investing in Djibouti include:
- The geographical location of Djibouti
- The closeness of Djibouti to the extensive market of Ethiopia
- The port of Djibouti that is used by all fellow African countries for re-export of their goods
Many foreigners have been living in Djibouti for years. The receptiveness of Djibouti to the foreign community has also attracted numerous foreign investors to the country. The Government of Djibouti has relaxed their laws to attract maximum number of foreign investors. The land is offered in a lease to the foreign investors in Djibouti at a cheap rate.
There is a strict restriction on the import of firearms in Djibouti. The Government of Djibouti works actively against terrorism. This anti-terrorism stance encourages the foreign investors to further invest in Djibouti. There is no restriction set by the Ministry of Economy in Djibouti in export from Djibouti.
The Djibouti export items include many agricultural products. In 2001, Djibouti recorded an export of agricultural products, which amounted to nearly one million dollars. Djibouti offers a transit point for the export of products from other African nations. It helps Djibouti to earn good revenue. The major items exported this way from Djibouti include coffee, live animals, salt, dried beans, hides and cereals.