This note presents aspects of welfare of urban and rural poor in Djibouti. With only 15 percent of Djibouti's population, rural areas host about 45 percent of the country's poor. As such, these areas require a comprehensive strategy that invests in infrastructure and service provision and better connection to cities. The urban poor are more numerous and concentrated in the Balbala community of the capital. A policy tool kit to promote high quality of public services, better education and employment opportunities for urban poor would be critical.