Bosaso, historically known as Bandar Qasim, is a city with a rich and ancient history rooted in antiquity. Its formation is inextricably linked to seafaring and trade in the Horn of Africa region. Although the exact date of its founding is unknown, settlements in this area have existed for millennia. Historians associate the region with the ancient port of Mosylon, which was mentioned in the 1st-century AD Greek navigational document "The Periplus of the Erythraean Sea" as an important trading post. According to legend, the first permanent settlement on the site of modern Bosaso was founded in the 14th century by a merchant named Qasim, from whom the historical name of the city is derived — Bandar Qasim ("Qasim's Port").
The city's development was facilitated by its strategic location on the southern coast of the Gulf of Aden, which made it a natural hub for maritime trade between Africa, the Arabian Peninsula, and India. Bosaso served as a vital export point for valuable goods from the Somali interior, such as fragrances (frankincense and myrrh), gum arabic, and livestock. Additional stability and security for trade caravans and ships in the 19th and early 20th centuries were provided by its role as one of the centres of the Majeerteen Sultanate.
Initially, Bosaso's economy was built on fishing, pearl diving, and servicing merchant ships crossing the Indian Ocean. Thanks to its status as a bustling port city, the culture of Bosaso absorbed Arab and Persian influences, which can still be traced today in the local architecture, language, and traditions. The city has historically been a "melting pot" where different peoples met and interacted, creating a unique and multifaceted environment.