RPT-Arms Trade-Dealers revel in Somali war business

(Reuters correspondents worldwide are looking this week at how recession and changing threats are affecting the global arms trade)

* Mogadishu arms dealers grow rich in Somalia's war

* Prices are lower due to plentiful supply

By Abdi Sheikh

MOGADISHU, June 9 (Reuters) - Sitting on a mat at home between taking orders for arms on his two mobile phones, Osman Bare gives thanks for the riches flowing from Somalia's war.

"I have only been in the weapon business five years, but I have erected three villas. I have also opened shops for my two wives," said the 40-year-old, one of about 400 Somali men operating in Mogadishu's main weapons market.

"Peace means bankruptcy for us."

Despite a U.N. arms embargo on Somalia, the Horn of Africa nation is awash with weaponry from all over the world that has fuelled one of Africa's longest-running conflicts.