Djibouti is a country in Eastern Africa that borders the Red Sea and the Gulf of Aden. Neighboring countries include Ethiopia, Eritrea, and Somalia. Djibouti has a strategic location near the world’s busiest shipping lanes and close to Arabian oilfields. The government system is a republic. The chief of state is the President and the head of government is the Prime Minister. Djibouti has a mixed economic system in which the economy includes a variety of private freedom, combined with centralized economic planning and government regulation. Djibouti is a member of the African Union (AU), African Economic Community (AEC) and the Common Market for Eastern and Southern Africa (COMESA).