This is the Dragon's Blood tree. The Dragon's Blood tree "bleeds" when it is cut. Well, not really, but it's red sap certainly looks like blood. People throughout history have used this unusual sap, or dragon's blood, for many things ranging from dyes and medicines to glue, breath fresheners and alchemy.
The tree is rare and can be found on some small islands in the Indian Ocean, particularly on Socotra Island. The inhabitants there use the dragon's blood sort of as a panacea to cure many and most medical problems.
But even without the benefits of it's unique "blood," this tree would still be a beautiful addition to any landscape.