Bu'aale stands on the Juba River and is the administrative capital of Middle Juba region. Jubaland's 2013 interim constitution designated it as the state capital, although the Jubaland government is based in Kismayo.

The town lies in the fertile Juba valley, between Baardheere upstream and Jilib downstream, on the highway that runs the length of the valley.

Bu'aale is an agricultural town. Residents grow maize, onions and tobacco, and the area is a major maize producer that supplies markets in neighbouring towns.