"Together with Foreign Minister Sa'ar and the President of the Republic of Somaliland, we signed a joint and mutual declaration," Netanyahu posted to X.
"This declaration is in the spirit of the Abraham Accords, signed at the initiative of President Trump," he said.
In doing so, Israel became the first country to recognize the breakaway region.
Later on Friday, Somalia's Foreign Ministry denounced Israel's "deliberate attack" on its sovereignty and warned that recognizing Somaliland as an independent state would "undermine regional peace."
"Illegitimate actions of this nature seriously undermine regional peace and stability, exacerbate political and security tensions," the ministry said in a statement.