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In 2025, Somalia is witnessing a powerful economic transformation and much of the momentum is coming from the Somali diaspora Spread across the globe from North America to Europe, the Middle East to East Africa millions of Somalis living abroad are increasingly choosing to invest back home.
But what’s driving this trend? And what sectors are they focusing on?
Here are the main reasons why more and more diaspora Somalis are putting their time, money and passion into Somalia’s future.
Economic Stability Is Improving
Over the past decade, Somalia has made significant strides in rebuilding. While challenges remain, the improvement in security in major cities like Mogadishu, Hargeisa, Garowe and Kismayo has given many diaspora members a renewed sense of hope.
The return of major airlines like Turkish airlines, Egyptian airline, Qatar and Ethiopian airlines, international banks like Salaam Bank and Premier Bank, Ziraat bank which is Turkish bank and Egyptian bank both acquiring license from the central bank of Somalia , Government efforts to streamline business registration have opened the door for small and medium businesses to grow.
Real Estate and Construction Boom
The construction sector is one of the biggest magnets for diaspora investment in 2025.
From residential apartments to office complexes, hotels and rental properties, Somali cities are growing rapidly specially Mogadishu. The demand for housing is rising due to urbanization, population growth and the return of skilled professionals.
Many diaspora families are building rental properties or shopping centers, using remittances and savings from abroad. With land prices in cities like Mogadishu still relatively affordable compared to Nairobi or Addis Ababa, Somalia offers an attractive return on investment.
National Pride and Responsibility
Beyond profits, there’s a strong emotional reason behind these investments: patriotism. Many diaspora Somalis feel a personal responsibility to rebuild their homeland. After decades of watching Somalia struggle they now want to be part of its success story.
This national pride has fueled investments in education, healthcare, clean water projects, and entrepreneurship. Some have returned to start tech companies, schools, or agricultural ventures to create jobs and solutions for local communities.
Rise of Digital Tools and Mobile Banking
In 2025, it’s easier than ever for someone in Minnesota or London to invest in Somalia. Thanks to platforms like eDahab and Hormuud people can transfer money instantly to business partners or relatives back home.
5. Growing Business Ecosystem
From tech hubs in Hargeisa to logistics companies in Mogadishu, a new business ecosystem is emerging. Entrepreneurs are connecting with international investors and Somali professionals abroad.
Some organizations even host diaspora business forums in cities like Nairobi and Istanbul, creating networking opportunities and partnerships. The government and private sector are working to improve transparency and legal protections for investors encouraging even more diaspora engagement.
Final Thoughts
The Somali diaspora is more than a source of remittances in 2025 they are builders, investors and changemakers. Their money, skills and networks are transforming Somalia from the ground up.
Whether it’s starting a construction company, opening a private school or investing in clean energy, the Somali diaspora is playing a vital role in reshaping the nation’s future.
As Somalia continues to stabilize and modernize, this trend is only expected to grow.
What do you think? Are you part of the diaspora investing back home?
Share your experience in the comments or contact us to feature your project on Build Hub Somalia.
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