Gulf states expand economic influence in Africa, challenging European dominance — ECFR report

In recent years, the Gulf monarchies have pivoted towards a more geo-economic strategy in Africa, diversifying their engagements from security and political interests to economic development, says a new report by the European Council on Foreign Relation (ECFR), noting that the Gulf expansion could also exacerbate the ongoing decline in European involvement in the continent.

This shift, which began in the late 2010s, focuses heavily on the continent’s energy and infrastructure sectors, areas where Africa’s needs align with Gulf states’ ambitions to diversify their economies beyond oil.

According to the ECFR’s report, the Gulf countries, mainly Saudi Arabia, the UAE, and Qatar, have historically been active in North and East Africa, but recent geopolitical dynamics, including the Covid-19 pandemic and the global shift towards renewable energy, have accelerated their investment in sub-Saharan Africa.

African governments, seeking alternatives to traditional Western partnerships, have welcomed Gulf states’ flexible and rapid deployment of funding and development projects. These states offer investments that are more strategic and aligned with both political and economic interests, fostering strong relationships with African governments.

However, the Gulf states’ increasing presence raises concerns for European influence in the region. The European Union, while still Africa’s largest trading partner, faces growing competition from China, Russia, and now the Gulf states. This challenge could diminish Europe’s ability to maintain its political and economic ties with African nations. Yet, there are opportunities for collaboration. Europe’s technological expertise and the Gulf’s financial resources could complement each other, particularly in areas like renewable energy and workforce development, ensuring a mutually beneficial future for both regions in Africa’s economic transformation.

“The EU and its member states will have to work with Gulf states in Africa,” says the report, adding that “if they fail to do so, their political and economic decline on the continent could accelerate.”