Shariah funding catalyst for Somaliland

With still no global recognition of Somaliland’s statehood, since its declared independence from Somalia on the 18^th May 1991, this African nation’s economic potential of gas and oil reserves in the Somali basin, estimated to be around 30 billion barrels with a US$2 trillion valuation, remains untapped.

Amid its relative political stability for over three decades, where pastoralism remains the backbone of Somaliland’s economy, a private enterprise now aims to catalyze growth in local support industries in anticipation of large inflows of foreign capital into the nation’s energy sector.

Bilow Capital Co-Founder and General Partner Hana Kaise noted that a paralysis of large investment inflows may end soon as the 2016 investment of over US$400 million by Dubai World to operate the Berbera port and a nearby industrial zone has shown that the foreign capital model works.

“Local SMEs can benefit if they’re ready. So, we’re focusing on six sectors which we feel will play an important part in Somaliland’s economy. They are in logistics, technology, food systems, education, healthcare and renewable energy,” she shared with IFN Investor.

To meet the mainly Muslim population’s needs, Bilow is launching the Shariah compliant RISE Fund by end-February 2026 – to finance a pipeline of SMEs that were reviewed and selected via the Bilow Venture Lab program conducted in 2025.

Acknowledging that Somaliland SMEs and investment opportunities may seem relatively small compared to neighboring GCC offerings, Bilow Capital set an ultra-conservative US$5 million initial target for the RISE Fund – reaching out mainly to diaspora Somalilanders, prioritising engagement investors who understand the long-term value and untapped potential of this market.

“Returns will be comparable to that from financing common in Africa, around 8-11%. Being the first investment fund in Somaliland, be it Shariah or conventional, we want investor expectations to be realistic.”

In establishing this pioneer fund, Hana is confident that Bilow Capital will be in the prime position to benefit when Somaliland’s economy takes off – not just with the energy boom, but also when capitalizing on other rare earth minerals plus its port’s strategic location at the Gulf of Aden entry for Red Sea shipping routes.