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flag Israel's recognition of Somaliland has boosted hopes for economic growth via the Berbera port, despite regional tensions and security concerns.

flag Somaliland’s recognition by Israel, the first formal acknowledgment of its independence since 1991, has ignited hopes for economic growth centered on the Berbera port, which saw a 30% traffic increase from 2023 to 2025 and could expand further with a potential Ethiopia trade deal. flag Operated by the UAE’s DP World, the port’s strategic importance has drawn regional tensions, as Iran-backed Houthi rebels warned any Israeli presence would be a military target, and the UAE has faced missile attacks. flag While Somaliland denies plans for a military base, Western sources suggest a possible covert Israeli security presence. flag Al-Shabaab opposes Israeli involvement, raising fears of retaliation. flag Despite these risks, local leaders in Berbera remain optimistic, citing economic progress and comparing future development to Dubai.

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