Substantial relations have steadily developed between Sweden and Somaliland Republic, despite the absence of diplomatic relations. There are contacts between the two sides in a wide range of areas such as development, Trade investment and culture, as well as cooperation between various NGOs and political parties.

Somaliland have representative offices in Sweden. Sweden have no representative office in Somaliland. The Swedish embassy in Nairobi, Kenya is responsible for Somaliland.

The Swedish government decided 15 feb, 2007 to see Somaliland a self governing region when it comes development co-operation. At the moment the Swedish Aid to Somaliland goes through UN organizations and Swedish-and Somaliland organizations. The Trade between Somaliland and Sweden is increasing due to diaspora who went back and start business in Somaliland. The interest from the Swedish investors are increasing in many areas.

Somaliland presidents visit to Sweden in june 2007 highlighted the relations between the two countries. During the Presidents visit, his excellency met member of the Swedish parliament, Foreign Affairs committee, Director General of Swedish International Development Co-operation(SIDA), Business community, the State Secretary for Development Co-operation and high officials from the Ministry for Foreign Affairs. The Speaker of Somaliland House of Representative have been to Sweden in several time and met members of the Swedish parliament, government officials, SIDA and NGOs.