According to the IOM, this happened after two overloaded boats capsized in rough seas on Tuesday.
The spokesperson for IOM Joel Millman said the vessels were on their way to Yemen.
Yemen is now seen as the gateway to Gulf countries where many migrants hope to find jobs and better lives.
Local residents who found some of the survivors alerted IOM officials. A team of gendarmes found two survivors and the bodies of five migrants. The boats were believed to have capsized off Godoria, in Djibouti’s Obock region.
Meanwhile, IOM staff identified an 18-year-old male survivor who is believed to be part of the 130 passengers on the first boat, but the IOM said that he had no information on the second craft.