UAE leads investment charge into lucrative African market

The United Arab Emirates (UAE) has emerged as Africa’s largest provider of foreign direct investment (FDI), funnelling $59.4 billion into key high-growth sectors such as infrastructure, energy, transport, logistics, and technology.

The UAE has joined the bandwagon of world powers scrambling for commercial dominance in Africa, targeting a share of the continent’s 1.2 billion people living there. As the trade between the UAE and Africa has steadily increased in recent years, this rapid rise places UAE in the ranks of global giants, sparking fierce competition in the continent’s market.

According to a recent report by property consultant firm Knight Frank, UAE is the biggest source of FDI for Africa among the states of the Gulf Cooperation Council (GCC). White&Case, a global law firm, adds that over the past decade, the UAE has emerged as the fourth-largest investor globally into Africa — after China, Europe, and the US.

With $5.6 billion in projects, Abu Dhabi leads UAE’s economic push. In 2021, Abu Dhabi spent $5.6 billion on 71 projects on the continent, with The Agtech Park in Egypt ranking as the most significant. Abu Dhabi’s rise means greater rivalry in the Africa’s market with the US, India, Russia, and China, which have enjoyed influence on the continent.

According to the most recent information provided by the UAE Ministry of Foreign Commerce, commerce between the UAE and six non-Arab African nations, Angola, Kenya, Nigeria, Ethiopia, South Africa, and Tanzania, will exceed US$8 billion in 2020. For instance, Dubai’s DP World, a pioneer in global supply chain solutions, has made over US$ 1.8 billion in investments in Africa over the past ten years and has plans to make another US$ 3 billion in the upcoming years.