Somalia has begun work on a 50,000-unit residential project in the coastal Kaaraan district in the north of Mogadishu.

Somali president Hassan Sheikh Mohamud laid the foundation stone for the Xeebta-Luulka (“Pearl Beach”) project earlier this week, Mogadishu 24 reports.

Funded by local businesses, the scheme is meant to signal confidence in Mogadishu and the country.

Somalia’s GDP has grown consistently over the past 15 years, from $2.7bn in 2010 to $11.7bn last year. Future growth is forecast to be a steady 3.7% a year.

As well as homes, Pearl Beach will have schools, clinics, shops, mosques and leisure amenities.

The development is expected to create thousands of jobs during and after construction.

President Mohamud said the scheme “represents more than just bricks and mortar”.

“It’s a testament to our nation’s resilience and vision for a prosperous future,” he said.

One local resident, Nadra Abdi, told Mogadishu 24: “It’s not just about housing; it’s about creating a life worth living here in Somalia.”

Somalia has been engaged in a low-level civil war since the overthrow of Siad Barre’s government in 1991.

This led to a power vacuum, which a number of clan-based armed groups attempted to fill.

More recently, the governments of Somalia and Kenya have fought the Islamist Al-Shabaab organisation.