In terms of average income, Caabudwaaq city is, economically, one of the Somali's cities least developed city and its economic performance is heavily dependent on its livestock. Its natural resources are: animal and its skin. Over the centries, Poverty is the dominant theme in this largely subsistence economy, which hinged on the vagaries of arid and desert region,which threatened by uncertainty of peaceful existence as a result of centuries-old 'Dalal' and 'siyad Hussein' clan-based discord and rivalry.
The cash economy of Caabudwaaq city is dominated by its animal from foriegn and domestic companies exporting its lovestock through Somali coastal cities, by the trade, import as well of manufactured goods from abroad. Thus, economic activity of caabudwaaq city is clandestine past and present.
Caabudwaaq's primary source of revenue is its livestock. Over 40 companies come monthly to Caabudwaaq livestock market to burgain with daily activity animal prices, as a sun rise, trucks from Berbera, Mogadishu, and other Somali costal cities export a goods to exchange animals whereas those exported goods fill Caabudwaaq's stores and markets.
Caabudwaaq relies on its animals, annually sending tens of thousands of goats, sheeps and camels through Berbera,Bosasso, and Mogadishu, etc.
The income of the animals contribute to the keep running of the town's municipality, schools, hospitals and power suplies.
The Caabudwaaq's animals help keep institutions such as the Caabudwaaq primary school,Middle school and High school running. At the schools, every student has pen and books. Their teachers have a teaching materials. Such basic tools are missing today in some Somali cities.
Teachers and school administrators are hardly paid, but community elders help supply their quotidien needs. A host of local authority, however, play a major role the city's education system . Yet the scarcity of education system is undeniable.