Ali Sabieh, the capital of the Ali Sabieh Region, developed from a small village into a key administrative and commercial center following the arrival of the Ethio-Djibouti Railway in 1900. It played a strategic role during World War II and later became a refuge for those displaced by the 1977–1978 Ogaden War. The town's central location supports its economy, serving as a transit hub for goods moving across Djibouti. Notable landmarks include the Ali Sabieh Mountain, a national symbol, and the Arrei Mountains, the highest point in the region. The town also hosts various cultural and sporting events to engage visitors.