The small country of Djibouti, located on the Horn of Africa, has a population of less than 1 million people. But military strategists and security policymakers worldwide consider the country at the top of their lists when it comes to geopolitics.

The United States, France, China and Japan, among other countries, have maintained military bases in Djibouti for several years. Saudi Arabia and India could soon join their ranks.

With Djibouti located at at the entrance to the Red Sea — one of the most sensitive straits in global trading —  the small nation plays a major role for stakeholders far and wide. Positioned directly at the Bab al-Mandab Strait, anyone wanting to travel from Asia to Europe or vice versa by ship via the Suez Canal has to pass through Djibouti.

Djibouti’s coast is of great strategic importance to global trade

Over 10% of world trade passes along the coast of Djibouti. Therefore, various economic…

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