The UAE is the largest provider of Foreign Direct Investment (FDI) for Africa among the Gulf Cooperation Council (GCC) states, concentrating on the continent’s high-growth sectors, including infrastructure, energy, transport, logistics and technology.

The United Arab Emirates (UAE) has jumped on the bandwagon of world powers vying for commercial dominance in Africa, aiming to sell its goods to some of the 1.2 billion people living there.

According to the most recent study by the property consulting firm Knight Frank, The UAE is the largest provider of foreign direct investment (FDI) for Africa among the Gulf Cooperation Council (GCC) states, concentrating on the continent’s high-growth sectors, including infrastructure, energy, transport, logistics and technology.

After China, Europe, and the US, the UAE has become the fourth-largest investor in Africa over the past ten years according to White&Case, a worldwide legal company with offices in New York that represents businesses, governments and financial institutions.

FDI flows from the GCC (Bahrain, Kuwait, Oman, Saudi Arabia, and the UAE) states to Africa totaled $101.9 billion on 628 projects between 2012 and 2022.

Due to the US, India, Russia, and China’s impact on the continent, as well as Abu Dhabi’s rise, there will be greater rivalry in the African market.

According to White&Case, FDI flows from the GCC (Bahrain, Kuwait, Oman, Saudi Arabia, and the UAE) states to Africa totaled $101.9 billion on 628 projects between 2012 and 2022, whereas FDI flows from Africa to the GCC states totaled $3 billion on 141 projects. FDI from the UAE to Africa totaled $59.4 billion during the time, with Saudi Arabia coming in second ($25.6 billion), followed by Qatar ($7.2 billion), Kuwait ($5 billion), and Bahrain ($4.2 billion).

Africa is quickly growing as one of Abu Dhabi’s major markets. In 2021, Abu Dhabi spent $5.6 billion on 71 projects on the continent with The Agtech Park in Egypt ranking as the most significant.

India is likewise attempting to influence trade on the continent. For instance, in 2022 India organized a two-day investment conference in New Delhi that included around 40 African officials from 17 different countries to talk about how India and Africa might better improve trade and investment.

Source: BusinessInsiderAfrica