Covering an area of approximately 23,669 km², the Republic of Djibouti is located on the borders of Africa and Asia, at the southern end of the Red Sea with an outlet on the Gulf of Aden. It is located in the Horn of Africa and shares its land borders with Somalia to the south, Ethiopia to the south-west, and Eritrea to the north. The east of the country is occupied by the Red Sea.

In general, there is no requirement under the local Djibouti laws to neither have a local partner for incorporating a local entity nor permit to be obtained for foreign investment.

But there are some limited activities with restrictions on foreign ownership (Maritime transport Auxiliaries, security services, and insurance)

Moreover, the country offers a relatively independent legal regime only applicable in special economic areas called freezones.

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