Situated in northern Somalia and straddling the Gulf of Aden, Somaliland is adjacent to a key maritime chokepoint between Europe and Asia. Up to 10% of global trade passes through the Gulf's waters.
Declaring independence in 1991, as the US-backed Somali government disintegrated after a costly war with Ethiopia over the Ogaden region, Somaliland’s sovereignty bid was never recognized by any UN members. Somalia considers it an integral part of its territory.
Ethiopia maintains unofficial diplomatic and economic ties with Somaliland, with the region a means for the landlocked country to break out into the open sea. Ethiopia and Somalia agreed in December to begin work to resolve strained relations amid Ethiopian plans to build a new port in Somaliland, but tensions remain high.
Turkiye has sought to act as a mediator, having cultivated ties with Somalia, including a maritime security partnership, as part of its broader ambitions for the region.
The US, which has a military base in Somalia and is planning to build several more, has officially rejected Somaliland’s independence push up to now.
China’s influence in Djibouti, Ethiopia and Somalia could make it crucial for Washington to try to maintain leverage in Somaliland, in the eyes of US strategists.
New Somaliland president Abdirahman Mohamed Abdullahi has prioritized international recognition, potentially making concessions to the US more likely.
The Trump administration has mulled relocating Gazans from the war-torn strip to Somaliland or some other area of Africa, a prospect rejected by the Palestinians, but supported by Israel. This, more than anything, may be the key reason for Washington's sudden recognition push.
Besides strategic access, the Horn of Africa itself is extremely rich in resources, from farming, fishing and livestock to gold, oil and gas, gemstones, and potentially, geothermal energy.