By Abdullah Al-Awlaki*
The UAE is working on a strategy that will enable it to increase its investments in Africa, particularly in the areas of infrastructure and natural resources, with the aim of strengthening bilateral economic interests between African countries and the UAE.
Investment Environment
The UAE is one of the largest investors in Africa, with total investments reaching approximately $60 billion over the ten-year period from 2012 to 2022. In early 2023, this pledge was renewed with the promise of an additional fund of $4.5 billion aimed at financing clean energy projects across the continent (Rédaction Africanews & Kato, 2024).
The UAE’s investments are primarily spread across industries such as infrastructure in the ports and natural resources sector, energy, transportation and logistics (Gbadamosi, 2023).
Main investment areas
1. Infrastructure Development: The UAE has been active in infrastructure projects across the African continent, particularly focusing on funding major infrastructure items such as roads, bridges and airports, some of which include the renovation of Ethiopia’s Bole International Airport and several port facilities, leading to increased trade and communications across the continent.
2. Renewable Energy Initiatives: The UAE is committed to developing sustainable energy in Africa, leveraging its knowledge and experience in the renewable energy sector. Currently, solar and wind power initiatives are ongoing to improve energy supply and environmental awareness (Scala, 2023).
3. Agricultural Investment: To ensure food security, the UAE is currently investing in agriculture in Africa, supporting food production to meet the needs of the population while at the same time laying the foundations for trade of the UAE’s food imports (Zok, 2023).
Economic and social benefits
UAE investments are geared towards achieving social impact within communities and provide opportunities for enterprise development. These activities involve the transfer of technology and skills, thus enhancing the innovation capacity of locals. UAE education representatives have also revealed scholarship programs for African and other students who wish to study in the UAE in order to build long-term partnerships of knowledge sharing (Scala, 2023; Zok, 2023).
Strengthening partnerships
The UAE and Africa have investment cooperation as partners, with both countries actively developing their societies while working on projects of mutual benefit. Unlike other donor countries that partner with different countries while prioritizing their own governance, the UAE wants to partner in a different way, respecting the governance of the country in question and supporting their development. This strategy is well-illustrated in the relationship between the UAE on the one hand and African governments, including corporations and businesses on the other (Zok, 2023).
Vision for the future
The expected interconnectivity as the UAE seeks to strengthen its ties with various African countries has the potential to boost economic growth and cooperation. Investment in the UAE also contributes positively to the UAE’s economic diversification policy, but it is also essential to understand how important such investments are to Africa. Such mutually beneficial relationships will benefit the UAE and will project an effective and progressive image that will help the UAE and African countries enjoy a better future (Scala, 2023; Zok, 2023).
*Abdullah Al-Awlaki* is an economic researcher specializing in the Gulf states.