By Abdullah Al-Awlaqi *

The United Arab Emirates is working on a strategy that will allow the country to expand its investments in Africa, especially in the infrastructure and natural resources sectors. This strategy aims, to enhance the bilateral economic  interests between African countries and the UAE.

Investment Landscape

The UAE has become one of the biggest investors in Africa with total investments amounting to about $60 billion in a decade between 2012 and 2022. Early in 2023, this pledge was renewed with another promise of an extra $4. 5 billion fund that aims at funding clean energy projects throughout the continent (Rédaction Africanews & Kato, 2024).

The UAE’s investments are spread across industries such as infrastructure, energy, transportation, and logistics mainly in ports and natural resource sectors (Gbadamosi, 2023).

 Key Areas of Investment

1.     Infrastructure Development: The UAE is highly active in infrastructure projects all over the African continent especially in funding of the key infrastructure items such as roads, bridges and airports among other. Some of them are the upgrading of Ethiopia bole international airport and several port facilities which increases the trade and communication throughout the continent.

2.     Renewable Energy Initiatives: The UAE is using its knowledge and experience in the field of renewable energy for the development of sustainable energy in Africa. As for today, there are continuing initiatives for solar and wind power, which serves as energy provision and environmental consciousness (Scala, 2023).

3.     Agricultural Investments: In its quest to ensure that its food security is stable the UAE is now investing in the African agriculture. It also assists in food production to cater for the population needs and at the same time develop ground for trades for the UAE’s imported foods (Zok, 2023).

Economic and Social Benefits

 The UAE investments are geared towards the achievements of social impact within communities and avails opportunities for the advancement of enterprise. As they entail the transfer of technology and skills, these activities enhance the ability of the local population to innovate. Also, the UAE’s representative for education reveals scholarship programs for Africans and other students who want to study in the UAE in an effort to have a long-lasting partnership of knowledge sharing (Scala, 2023; Zok, 2023).

Strengthening Partnerships

 Investment cooperation between the UAE and Africa as a partner and both countries actively develop their societies while working on mutually beneficial projects. Unlike other donor countries that partnership with different countries while trying to favour their own governance the UAE wants to partner differently while respecting the governance of the country in question and supporting development. This strategy is well seen in the relations between the UAE on one side and African governments together with the companies and businesses on the other side (Zok, 2023).

A Vision for the Future

 The interconnectivity that is anticipated as the UAE seek to foster relations with the different African countries has the potential of promoting economic growth and cooperation. The investment in the UAE also contributes positively to the UAE’s economic diversification policies while it is also imperative to understand how such investments are significant to Africa. Such a mutually beneficial relationship is beneficial for the UAE and puts it in an effective and progressive image that helps the UAE and African countries enjoy a better future (Scala, 2023; Zok, 2023).

 

* Abdullah Al-Awlaqi* is an economic researcher specializing in the Gulf states.