From 1966 to 1973 Galaydh worked for the Somali Institute of Public Administration and the Somali Institute of Development Administration and Management. Galaydh started as a Research and Training Officer for one year before going to the Maxwell School of Citizenship and Public Affairs at Syracuse University for post-graduate work. He returned to SIPA in 1969 to eventually become the Director General. In July, 1974 Galaydh was named General Manager of Jowhar Sugar Enterprises, the biggest national sugar producer in Somalia. Galaydh managed 7,000 employees and 9,000 hectares of land for Jowhar Sugar Enterprises which contributed at least 10% to Somalia's national budget. From 1977 to 1980 Galaydh became the Executive Director of the $400 million Juba Sugar Project in Marery, Somalia. Galaydh worked closely with British companies to complete the project ahead of schedule and under budget. From 1996 to 2000 Galaydh founded and operated the private Somali telecommunications company, Somtel.
Public administration
In 1979 Galaydh was appointed as a Member of Parliament. In 1980 Galaydh was appointed as the Minister of Industry by Siad Barre. He served in this role until 1982. When tensions were heightened by Siad Barre, Galaydh was part of a group of reformer ministers who fled the country to avoid being arrested by the Somali President.
Prime minister of Somalia
Starting in September 1999, Galaydh participated in the Somalia National Peace Conference in Arta, Djibouti. In October 2000, Abdiqasim Salad Hassan was named the new President of the Transitional National Government in Somalia and named Ali Khalif Galaydh as Prime Minister. The two statesmen returned to Somalia from their Djibouti exile on October 14. On October 15, Ismail Mahmud Hurre was named Foreign Minister. The rest of the cabinet was announced five days later: Abdullahi Baqor Musa as Defense Minister, Dahir Shaykh Muhammad as Interior Minister, and Sayid Shaykh Dahir as Finance Minister, with Saida Haji Bashir Ismail as Finance Vice-Minister. During his tenure, Galaydh led negotiations to get two of the five Somali warlords at the time to join the cabinet. The other three went to Ethiopia and joined together to form an armed, anti-government movement. In February, 2001 Galaydh successfully used diplomatic methods to get Ethiopian troops to leave the Southwestern Somali region of Gedo which Ethiopia had occupied from August 1996 to February 2001.
On 20 August 2012, Galaydh was among the legislators nominated to the newly established Federal Parliament of Somalia.
President of Khatumo State
In August 2014, Galaydh was elected President of the Khatumo State regional administration in northern Somalia. He defeated former co-president Mohamed Yusuf Jama by 21 votes to 9. Assembly members, who had been appointed by traditional leaders, also selected Abdul Cagalule as Vice President.