Loyada is a small town located in the Arta Region of Djibouti. Situated on the west coast of the Gulf of Aden, it lies approximately 25 kilometres (16 mi) from the national capital city of Djibouti.
The town serves as a significant geographic point as it functions as the only official border crossing between Djibouti and Somaliland. Due to its location along this international boundary, it is a primary transit point for movement between the two territories.