Djibouti City (also called Djibouti; Arabic: مدينة جيبوتي , French: Ville de Djibouti, Somali: Magaalada Jabuuti, Afar: Magaala Gabuuti) is the eponymous capital and largest city of Djibouti.It is located in the coastal Djibouti Region on the Gulf of Tadjoura.. Djibouti City has a population of around 529,000 inhabitants, which counts for over 70% of the country’s population.