https://en.sputniknews.africa/20230806/uae-ventures-into-lucrative-african-market-competing-with-global-powers-1061119297.html
UAE Ventures Into Lucrative African Market, Competing With Global Powers
UAE Ventures Into Lucrative African Market, Competing With Global Powers
Sputnik Africa
Abu Dhabi's growing influence in Africa is bringing increased competition to the continent's market, challenging the dominance of established players such as... 06.08.2023, Sputnik Africa
2023-08-06T18:57+0200
2023-08-06T18:57+0200
2023-08-06T18:57+0200
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The United Arab Emirates (UAE) has joined the race for commercial influence in Africa, seeking to tap the immense market of 1.2 billion people for its products.The UAE is the leading source of foreign direct investment (FDI) into the African continent among the Gulf Cooperation Council (GCC) countries, according to the latest report by real estate consultancy Knight Frank. The UAE's focus is on Africa's high-growth sectors, including infrastructure, energy, transportation, logistics and technology.This rise in Abu Dhabi's influence is bringing increased competition to the African market, challenging the dominance of established players such as the US and the BRICS nations of India, Russia and China.The White&Case report, in turn, reveals that between 2012 and 2022, FDI flows from GCC countries to Africa amounted to $101.9 billion across 628 projects, while flows from Africa to GCC countries totaled $3 billion spanning 141 projects. Notably, FDI flows from the Emirates to Africa reached $59.4 billion during this period, surpassing other GCC nations like Saudi Arabia ($25.6 billion), Qatar ($7.2 billion), Kuwait ($5 billion), and Bahrain ($4.2 billion).Recent developments reportedly underscore the growing importance of Africa to Abu Dhabi, with $5.6 billion in investments slated for the continent in 2021 alone. Of these investments, the Agtech Park in Egypt stands out as the most significant project.The main sectors attracting FDI were construction ($36.2 billion), environmental technologies ($31.7 billion), energy ($10.1 billion), transport and storage ($6.6 billion), and agribusiness ($3.2 billion).Investors are also eyeing sectors such as seaports, telecommunications, airlines and airports. DP World, a Dubai-based port operator known for its significant role in global supply chain solutions, has invested more than $1.8 billion in Africa over the past decade.In addition, DP World plans to invest a further $3 billion in the coming years. DP World currently operates seaports in Angola, Djibouti, Egypt, Morocco, Mozambique, Senegal and Somaliland.With the UAE's entry into the African market, the landscape of global competition for trade and investment on the continent is set to intensify. As Africa's potential as a lucrative market continues to grow, the involvement of various global powers, including the Emirates, will shape the economic dynamics of the region.
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international, investment, united arab emirates (uae), economy, trade, development, north africa, west africa, southern africa
international, investment, united arab emirates (uae), economy, trade, development, north africa, west africa, southern africa
UAE Ventures Into Lucrative African Market, Competing With Global Powers
Muhammad Nooh Osman
Writer/Editor
Abu Dhabi's growing influence in Africa is bringing increased competition to the continent's market, challenging the dominance of established players such as the United States and the BRICS nations of India, Russia and China.
The United Arab Emirates (UAE) has joined the race for commercial influence in Africa, seeking to tap the
immense market of 1.2 billion people for its products.
The UAE is the leading source of foreign direct investment (FDI) into the African continent among the Gulf Cooperation Council (GCC) countries, according to
the latest report by real estate consultancy Knight Frank. The UAE's focus is on Africa's high-growth sectors, including infrastructure, energy, transportation, logistics and technology.
Over the past decade, the UAE has emerged as the fourth-largest global investor in Africa, behind China, Europe and the United States, according to multinational law firm White&Case.
This rise in Abu Dhabi's influence is bringing increased competition to the African market, challenging the dominance of established players such as the US and the BRICS nations of India, Russia and China.
The
White&Case report, in turn, reveals that between 2012 and 2022, FDI flows from GCC countries to Africa amounted to $101.9 billion across 628 projects, while
flows from Africa to GCC countries totaled $3 billion spanning 141 projects. Notably, FDI flows from the Emirates to Africa reached $59.4 billion during this period, surpassing other GCC nations like Saudi Arabia ($25.6 billion), Qatar ($7.2 billion), Kuwait ($5 billion), and Bahrain ($4.2 billion).
Recent developments reportedly underscore the growing importance of Africa to Abu Dhabi, with $5.6 billion in investments slated for the continent in 2021 alone. Of these investments, the
Agtech Park in Egypt stands out as the most significant project.
The top five recipient countries for GCC FDI inflows to Africa between 2012 and 2022 were Egypt ($69.8 billion), Morocco ($4.6 billion), Algeria ($3 billion), Nigeria ($2.6 billion), and South Africa ($2.3 billion).
The main sectors attracting FDI were construction ($36.2 billion), environmental technologies ($31.7 billion), energy ($10.1 billion), transport and storage ($6.6 billion), and agribusiness ($3.2 billion).
Investors are also eyeing sectors such as seaports, telecommunications, airlines and airports. DP World, a Dubai-based port operator known for its significant role in global supply chain solutions, has invested more than $1.8 billion in Africa over the past decade.
In addition, DP World plans to invest a further $3 billion in the coming years. DP World currently operates seaports in Angola, Djibouti, Egypt, Morocco, Mozambique, Senegal and Somaliland.
With the UAE's entry into the African market, the landscape of
global competition for trade and investment on the continent is set to intensify. As Africa's potential as a lucrative market continues to grow, the involvement of various global powers, including the Emirates, will shape the economic dynamics of the region.
