An Independent Journal of Ideas

Gauri Khanna

Israel Becomes First Country to Recognise Somaliland as Independent State

Israel has become the first country in the world formally to recognise Somaliland as an independent sovereign state, breaking a diplomatic isolation that has lasted more than three decades. Somaliland declared independence from Somalia in 1991, established its own government, currency, security forces and electoral institutions, and has operated with considerable practical autonomy ever since, but until Israel’s announcement on 26 December no UN member state had formally recognised it. Israeli Prime Minister Benjamin Netanyahu and Somaliland President Abdirahman Mohamed Abdullahi signed a declaration of mutual recognition, with Israel saying it intends to expand cooperation in agriculture, health, technology and economic development. Netanyahu described the decision as being in the spirit of the Abraham Accords. Somalia has condemned the recognition as an attack on its sovereignty, while Egypt, Turkey and Djibouti have joined Mogadishu in rejecting the move and defending Somalia’s territorial integrity. The dispute raises a fundamental question that international law has never resolved neatly: if a territory governs itself successfully for decades and its population overwhelmingly considers itself independent, at what point does political reality become more important than the borders inherited from the state it left?

Somaliland is an unusually difficult case because it possesses many of the practical characteristics normally associated with statehood. It has maintained separate governing institutions for more than thirty years, controls most of the territory it claims, issues its own currency and passports, maintains security forces and has conducted several competitive elections and peaceful transfers of presidential power. Somalia’s federal government exercises little effective authority there. Somaliland therefore is not simply an armed separatist organisation controlling temporary territory; it has developed what political scientists would call empirical statehood, meaning the institutional capacity to function substantially as a state even without broad diplomatic recognition. Israel’s decision acknowledges this political reality explicitly.

Yet international recognition does not depend only on whether a territory can govern itself. The international system places enormous value on territorial integrity, particularly in Africa, where many borders were inherited from colonial rule. The African Union has historically been reluctant to legitimise unilateral secession because changing one border can create precedents affecting many others. If Somaliland receives recognition because it has governed itself effectively for decades, separatist movements elsewhere can argue that prolonged de facto independence should eventually produce the same result. Somalia therefore sees the issue not as recognition of an already separate political reality but as foreign legitimisation of the fragmentation of a sovereign state. This is why Egypt, Turkey and Djibouti reacted so strongly: the precedent potentially matters beyond Somaliland itself.

Somaliland nevertheless has an unusually strong historical argument compared with many separatist movements. The former British Somaliland protectorate became independent briefly in June 1960 before voluntarily uniting with the former Italian Somaliland to create the Somali Republic. Somaliland’s supporters therefore argue that the 1991 declaration was not the creation of an entirely new state but the restoration of sovereignty previously surrendered through a voluntary union. The distinction does not resolve the legal dispute, but it complicates the assumption that recognising Somaliland simply means redrawing an inherited African border. Somaliland broadly follows the boundaries of the former British protectorate, meaning recognition could be framed as restoring a previously recognised territorial unit rather than inventing a new one.

Israel’s motivations are also clearly strategic. Somaliland occupies an extremely important position beside the Gulf of Aden, close to the Bab el-Mandeb Strait connecting the Red Sea with the Indian Ocean. The waterway has become significantly more important to Israeli security since Houthi attacks from Yemen began disrupting Red Sea shipping after the Gaza war. A friendly state across the Gulf of Aden from Yemen could provide Israel with valuable intelligence, diplomatic and potentially logistical opportunities around one of the world’s most important maritime chokepoints. Recognition therefore gives Somaliland something it has sought for decades while giving Israel access to a strategically useful relationship in the Horn of Africa. This is a classic diplomatic exchange in which one side possesses recognition and the other possesses geography.

The decision also illustrates why recognition itself functions as an economic asset. Somaliland’s lack of international recognition has restricted access to international finance, investment and formal diplomatic relationships even though its institutions are more stable than those of several internationally recognised states. Businesses considering investment face uncertainty over contracts, international banking and political status. Recognition by one country does not eliminate those constraints immediately, but it can begin changing expectations. If Israel establishes formal commercial relationships and other governments eventually follow, Somaliland’s political risk premium could decline, making investment easier and potentially reducing borrowing costs. Diplomatic recognition therefore can have material economic value even when nothing physically changes on the ground.

The port of Berbera makes this especially significant. Located on the Gulf of Aden, Berbera has been expanded substantially with investment from the UAE-based DP World and offers an alternative trade route for landlocked Ethiopia. Ethiopia’s enormous population makes access to reliable ports strategically important, and Addis Ababa previously reached a controversial agreement with Somaliland involving access to the coast, producing a major dispute with Somalia. Somaliland therefore sits at the intersection of several regional interests involving Ethiopia, Somalia, the UAE, Turkey, Egypt and now Israel. Recognition changes the diplomatic value of those relationships because Somaliland can increasingly present itself not as an unrecognised local authority seeking assistance but as a potential Red Sea strategic partner.

This helps explain why Somalia fears a domino effect. One recognition can alter the expected probability of another. Governments previously unwilling to be first may become more willing once somebody else absorbs the diplomatic cost of breaking the consensus. Somaliland therefore does not need Israel alone to transform its international position; it needs Israel’s decision to change the calculations of Ethiopia, the United States, Gulf governments or African states. Recognition can exhibit a network effect: each additional recognising state reduces the political abnormality of the next recognition.

But Israel’s decision could produce the opposite response too. Regional governments may strengthen support for Somalia precisely because they fear the precedent. Egypt already possesses tensions with Ethiopia over the Grand Ethiopian Renaissance Dam and therefore has strong incentives to resist arrangements that increase Ethiopian influence around the Red Sea. Turkey has developed deep security and economic ties with Somalia and strongly supports Mogadishu’s territorial integrity. Somaliland’s recognition therefore risks becoming entangled in larger regional rivalries rather than remaining a narrow legal question about self-determination.

The most difficult principle is deciding how the international system should balance self-determination against territorial integrity. Treat territorial integrity as absolute and populations can theoretically remain trapped indefinitely inside states that exercise almost no effective authority over them. Treat self-determination as automatically producing a right to independence and multi-ethnic states can fragment whenever regional majorities prefer separation. International law deliberately leaves substantial ambiguity because either absolute principle would destabilise many existing countries.

A more useful approach is therefore conditional. How long has the territory governed itself? Does it possess functioning institutions? Is there strong and persistent local support for independence? Can separation occur without creating large populations trapped under unwanted rule? Has the parent state demonstrated realistic capacity to restore consensual government? Somaliland performs comparatively strongly on several of these criteria, although territorial disputes in its eastern regions and opposition among some communities complicate the picture. Recognition therefore should not be treated as an automatic reward for simply surviving long enough outside central control.

Israel’s move also raises an uncomfortable comparison with Palestinian recognition. Israel strongly opposes unilateral international recognition of Palestine while now becoming the first country to recognise Somaliland without Somalia’s consent. The cases are legally and historically different, but other governments will inevitably point towards the apparent inconsistency. Israel can argue that Somaliland has maintained effective self-government for decades while Palestinian sovereignty remains territorially and institutionally fragmented. Critics can respond that recognition is clearly being treated strategically rather than according to one universal principle. Both observations contain truth. States rarely recognise other states through legal theory alone; recognition is simultaneously a legal judgement and an instrument of foreign policy.

That does not make recognition meaningless. It means international legitimacy develops through politics as well as law. Bangladesh, Kosovo, South Sudan, Eritrea and many other states reached international recognition through very different pathways. Somaliland has spent thirty-four years demonstrating that de facto statehood can persist without de jure recognition. Israel has now disrupted that equilibrium.

The best outcome would be for the decision to reopen serious negotiations between Somaliland and Somalia over their future relationship rather than simply hardening both positions. A negotiated settlement would possess far greater legitimacy than recognition expanding while Mogadishu remains completely opposed. Possible arrangements could address borders, citizenship, assets, debt, security and economic cooperation even if full political reunification remains unrealistic. The objective should be making whatever political reality emerges stable enough that ordinary Somalis and Somalilanders gain from it rather than turning recognition into another regional confrontation.

Israel’s announcement therefore matters far beyond the number of embassies Somaliland currently possesses. It has challenged one of Africa’s longest diplomatic assumptions: that Somaliland can function indefinitely like a country without being treated formally as one. Whether the decision becomes historically transformative depends on what happens next. If no other state follows, Israel has created an unusual bilateral relationship. If recognition begins spreading, 26 December 2025 may be remembered as the moment Somaliland’s thirty-four years of de facto independence finally began turning into international statehood.