Ex-Prime Minister Mohamed Abdullahi Mohamed beat President Hassan Sheikh Mohamud in a surprise result.
The vote was held at the heavily guarded airport complex in the capital, Mogadishu.
According to reports, Traffic was banned and a no-fly zone imposed over the city to prevent attacks by militant Islamists.
Somalia has not had a one-person one-vote democratic election since 1969.
Mohamed's election is part of a lengthy and complex process to help the East African state rebuild its democracy and achieve stability.
Meanwhile, More than 20,000 African Union, AU, troops have being stationed in Somalia to prevent militant Islamist group al-Shabab from overthrowing the weak government.
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