The capital of Djibouti is Djibouti City. Located on the Gulf of Tadjoura, Djibouti City serves as the political, economic, and cultural heart of the country. It is strategically positioned near the Red Sea and the Bab-el-Mandeb Strait, making it a significant port city for international trade, particularly between Europe, the Middle East, and Africa. Djibouti City is known for its diverse population, vibrant markets, and its proximity to various natural wonders, including volcanic landscapes and coastal beaches.