Somalia Develops Investment Treaty Framework After Passing New Investment Law

By Zakaria Hassan - Reporter

Somalia, 11 April 2026 Somalia has launched efforts to develop a new framework for bilateral investment treaties, officials said on Saturday, following the recent passage of a long-awaited investment law aimed at strengthening the country’s investment climate.

The two-day workshop, organized by the Somali Investment Promotion Office (SOMINVEST), brought together representatives from the federal government, federal member states, the private sector and international investors.

Officials said the initiative marks the first time Somalia is drafting its own model for bilateral investment agreements to guide engagement with foreign partners.

SOMINVEST Director Mohamed Dubo said Somalia had previously relied on draft agreements provided by partner countries, which often favoured the interests of the originating states.

“Whenever you work from a model sent by another country, the majority of the benefits tend to go to that country,” Dubo said. “This is the first time Somalia is developing its own model aligned with national interests and development priorities.”

He said the proposed framework represents a “second-generation” bilateral investment treaty model, designed to balance investor protections with the government’s sovereign right to regulate its investment environment.

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Dubo emphasized that the current document is a draft that will form the basis for negotiations with partner countries before undergoing formal legal and institutional approval processes, including review by the cabinet and, if required, parliament.

Participants at the workshop said the framework could help expand investment opportunities across Somalia, particularly in regions seeking to attract new capital.

The move comes after Somalia’s Upper House of Parliament approved the 2025 Investment Law, which establishes an official body known as SOMINVEST to facilitate and promote both domestic and foreign investment.

The law has also been described as a key step toward boosting investor confidence and attracting foreign capital, as the government seeks to modernize the country’s investment framework.

Officials said the initiative is part of broader economic reforms aimed at modernizing Somalia’s legal and institutional framework for investment and ensuring a balance between protecting investors and safeguarding national sovereignty.