UAE’s $1.4bn investment in Zimbabwe enhances ties as West and China retreat

The United Arab Emirates (UAE) has solidified its position as Zimbabwe’s most important partner, surpassing China with a strategic $1.4 billion investment in real estate, gold trading, and other sectors.
This partnership, which began gaining momentum in 2022, marks a shift in global economic alliances as Zimbabwe continues to struggle with Western sanctions and a growing debt burden, which has soared to $21 billion since its 1999 default. The UAE’s investments have made a significant impact on Zimbabwe’s resource-rich economy, particularly in the gold sector, where production reached a record 36 tons last year. Key projects include the development of a luxury “cyber city” in Mount Hampden, near Harare, and partnerships in gold mining, such as with the Dubai Gold & Commodities Exchange. The Gulf nation’s investment spree in Zimbabwe is part of its broader strategy to expand influence across Africa, with the UAE having invested a total of over $110 billion in trade, renewable energy, infrastructure, and food security projects across the continent.
Zimbabwe’s economic landscape has been fraught with challenges, including high inflation and an informal economy that stifles large-scale business development. However, president Emmerson Mnangagwa’s efforts to court UAE investment, starting with his 2019 visit to the Gulf state, have provided the country with a critical lifeline. The UAE’s involvement in Zimbabwe underscores the changing dynamics in global investment. As Western powers reduce engagement and China retreats due to its own economic constraints, Gulf states like the UAE are leveraging their petrodollars to secure profitable and strategic partnerships in frontier markets. However, despite the substantial inflows, experts caution that the UAE’s investments alone won’t be enough to stabilize Zimbabwe’s economy. Addressing the country’s sovereign debt and adopting sound fiscal policies remain vital for long-term economic recovery.