The United Arab Emirates as the top investor in Africa among GCC states, according to reports. The UAE was recorded as the biggest source of Foreign Direct Investment (FDI), in sectors such as infrastructure, energy, transport, logistics, and technology.
In 2021 alone, the UAE invested $5.6 billion in 71 projects on the African continent. The Agtech Park in Egypt is one of Abu Dhabi’s most significant investments. Between 2021 and 2022, Egypt, Morocco, Algeria, Nigeria, and South Africa received the most investment from the GCC.
UAE integrating into African market
Construction is the sector most focused on, with $36.2 billion flowing in. Environmental technology, energy, logistics, and agribusiness are all the main priorities of the GCC’s FDI. Seaports, telecoms, airlines, and airports follow. Africa is home to a 1.2 billion people market, with lucrative potential across many industries.
DP World, Dubai’s major player in the global supply chain, is operating seaports in Angola, Djibouti, Egypt, Morocco, Mozambique, Senegal, and Somaliland. In the past ten years, DP World has invested over $1.8 billion in the continent, with another $3 billion in the pipeline.
Read more: Egyptian startups raise highest equity funding in Africa
Investments from across the globe
The UAE comes after China, Europe, and the United States as Africa’s main global investors. Beijing, for example, has an estimated $154 billion worth of infrastructure projects on the continent. This falls under their Belt and Road Initiative.
Russia and India also greatly influence the continent, both nations being fellow members of BRICS. India’s investment in Kigali, Rwanda’s Road Transport Center, has resulted in extremely successful results and has positioned Kigali as East Africa’s logistics hub. The road system has reduced transport time from weeks to days and has lowered storage costs.
BRICS, which includes Brazil, China, and South Africa, is holding its next summit at the end of this month. Recent reports have speculated whether or not Saudi Arabia, the UAE, Egypt, Turkey, and Iran may soon join.
The United States is also vying for influence on the African continent. Earlier this year, US Vice President Kamala Harris spent a week touring three African countries.
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