Djibouti
Djibouti is a small but strategically important country located in the Horn of Africa, situated at the southern entrance of the Red Sea. Bordered by Eritrea, Ethiopia, and Somalia, this nation occupies a critical geopolitical position along major mar...
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With a safety index of 46/100, Djibouti offers moderate safety conditions for expats and their families.
All international travelers to Djibouti, including citizens of the United States, United Kingdom, Canada, and Australia, require a visa for tourism or business visits, which can be obtained conveniently via eVisa online or visa on arrival at Djibouti-Ambouli International Airport and major border points.[1][3][8] The eVisa is the fastest option, processed within 48 hours to 10 business days through official platforms like djibouti-evisa.com or authorized services, requiring a valid passport (minimum 6 months validity from entry, at least 2 blank...
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53% above EU avg
29% below EU avg
72% above EU avg
Baselines based on EU averages. Source: Numbeo indices.
Capital
Djibouti
Timezone
UTC+03:00
Area
23,200 km²
Population
988,002
Djibouti shows a purchasing power index of 120/100, indicating excellent economic conditions for expats.
GDP
$3.52B
HDI
0.5
Quality of Life
N/A
NYC baseline: 43
Purchasing Power
50/100
+8 vs NYC
Understanding the economic landscape is essential for evaluating living costs and opportunities in Djibouti. This comprehensive overview covers key financial indicators including cost of living, housing markets, income levels, and fiscal policies that shape daily life and long-term financial planning.
Cost of Living Index
CPI: 72.5 (NYC=100 baseline), indicating expensive costs. Groceries: 70.6, Rent: 21.2, Restaurant Price Index: 59.4.
Housing Market
Property Price to Income Ratio: 16.5 years, very expensive. Rent Index: 21.2 offers some affordability.
Average Income Levels
Purchasing Power Index: 115.2, excellent relative to costs. GDP per capita projected at $4,640 in 2026.
Tax System
Corporate tax 25%, VAT 20% standard rate; special regimes for free zones offer lower rates. System has general and preferential tax frameworks with moderate clarity.
Business Environment
Ranked 112th out of 190 in World Bank Ease of Doing Business (2020 data). Port-driven growth at 6% GDP in 2025, but high bureaucracy and unemployment near 60% hinder private sector.
Social Security
Limited social safety net with basic healthcare and pensions; high unemployment (est. 60%) and poverty (projected 13.5-33.1% in 2026) indicate weak coverage and quality.
Djibouti, a small nation in the Horn of Africa spanning 23,200 km², features a predominantly hot desert climate (BWh) with minimal rainfall and extreme heat year-round. Temperatures rarely drop below 20°C, often exceeding 40°C, making it challenging for residents.
2 distinct climate regions — see full guide for details
Read full guideLife Expectancy
62.5
Population
988,002
Religions
Ethnic Composition
Research in Progress
We're currently analyzing expat perspectives for Djibouti. Check back soon for insights from real experiences!
We're gradually rolling out this feature and continuously improving the insights. The data is based on real expat discussions and will become more comprehensive over time.
Djibouti is an authoritarian state ruled by President Ismail Omar Guelleh since 1999 under a dominant-party system controlled by the People's Rally for Progress. A October 2025 constitutional amendment removed the presidential age limit, clearing the way for Guelleh to seek a sixth term in the April 2026 election. The country maintains regular elections but lacks meaningful democratic competition, with opposition parties facing significant restrictions and the ruling coalition holding a supermajority in the 65-seat National Assembly.
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Data Source: Safety, crime, and quality metrics are sourced from Numbeo, a crowd-sourced global database of reported data.
All scores are relative comparisons on a 0-100 scale, where 50 = global average. Higher scores mean better than average, lower scores mean worse than average.