UAE Emerges as Top GCC Investor in Africa

According to a recent report released by global legal firm White & Case, the United Arab Emirates (UAE) is now the 4th largest source of FDI into Africa. From 2012 to 2022, capital inflows into Africa from the UAE totaled nearly USD 60 billion.

This is part of a larger picture whereby investors around the world are developing a greater appetite for Africa. With regard to the Gulf Cooperation Council (GCC) countries, their combined #ODI into Africa exceeded USD 100 billion over the last decade. UAE is in the lead with $60B, followed by Saudi Arabia with $26B, Qatar $7B, Kuwait $5B and Bahrain $4B.

Due to cultural affinity and regional proximity, the #GCC states tend to focus on Northern Africa which shares the common Arabic culture and Muslim religion. Thus, one of the flagship projects that received investment by the UAE is the AgTech Park in Egypt.

Another area of interest is in infrastructure development along the maritime route in the vicinity of the Horn of Africa. Abu Dhabi has invested in building and operating ports in Djibouti, Eritrea, Somalia and Sudan.

Data compiled by the Ministry of Foreign Trade shows that the UAE is also boosting trade with non-Arab countries such as Angola, Kenya, Nigeria, Ethiopia, South Africa and Tanzania. The trade volume with just these six sub-Saharan countries reached USD 8 billion in 2020.