Baraawe is situated on the southern coast of Somalia, along the Indian Ocean. Its coastal location made it a vital port for trade along the East African coast, particularly during the peak of the Indian Ocean trade routes. The town has access to both the sea, which provides abundant fishing resources, and fertile land suitable for agriculture. Historically, Baraawe has been involved in the exchange of goods like spices, textiles, and other valuable commodities with the wider Indian Ocean world, including regions like the Arabian Peninsula and India.