The UAE leads investment in the lucrative African market

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

The UAE has joined global powers in a scramble for commercial dominance in Africa, targeting a slice of the continent’s 1.2 billion people. In recent years, trade between the UAE and Africa has grown steadily and rapidly, making the UAE one of the world’s giants and triggering fierce competition in the African market.

According to a recent report by real estate consultancy Knight Frank, the UAE is the largest source of foreign direct investment in Africa among the Gulf Cooperation Council (GCC) countries. Global law firm White&Case added that over the past decade, the UAE has become the world’s fourth largest investor in Africa, after China, Europe and the US.

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With $5.6 billion worth of projects, Abu Dhabi is leading the UAE economy. By 2021, Abu Dhabi has spent $5.6 billion on 71 projects across the continent, with Egypt’s Agritech Park topping the list. Abu Dhabi’s rise means greater competition in African markets with the US, India, Russia and China, which enjoy influence on the continent.

According to the latest information from the UAE Ministry of Foreign Affairs, the volume of trade between the UAE and six non-Arab African countries – Angola, Kenya, Nigeria, Ethiopia, South Africa and Tanzania – will exceed US$8 billion by 2030. For example, Dubai Ports World (DP World), a pioneer in global supply chain solutions, has invested more than US$1.8 billion in Africa over the past decade and plans to invest a further US$3 billion in the coming years.