Challenges in Puntland include limited financial resources, lack of food and water and a growing and increasingly vulnerable population. The majority of the population are nomads, mainly dependent on livestock (camels, sheep and goats), while those living on the coast are mostly fishermen. Around 25 to 30 percent of the population lives in urban areas. The security situation in Puntland has shown signs of improvement, but the inflamed neighborly relations with Somaliland and Khatumo and in addition -piracy and the movements of Al Shabaab - causes periods of less security.
Somaliland has increasingly been a stable country since its establishment in 1991. In contrast to Puntland Somaliland does not see itself as part of a federation, but as an independent country. Somaliland has dominion over the potentially resource-rich areas of Sool and Sanaag. This creates conflicts from time to time with both Khatumo and Puntland. The population is very similar to Puntland, with a mix of nomads and fishermen.
The regions of Sool, Sanaag and Cayne are located in a disputed area between Somaliland and Puntland.
The area is very rich, both in grazing and natural resources. It has recently proven to have oil.
These regions are highly vulnerable and both Puntland and Somalia fighting for hegemony and control. In addition, there is emerging a separate local structure, Khatumo who also want to control the regions.
Puntland does not seek independence from Somalia, but aims for federation within a united Somalia.
The people in the area belong mainly to the Darood clan