UAE-Africa trade is on the up, according to Charles Russell Speechlys partners Thomas Snider and Adrian Mayer. The UAE is becoming a pivotal economic bridge to Africa.
UAE’s Vision: Connecting Africa to Global Markets
In a recent opinion piece for African Law and Business, Thomas Snider and Adrian Mayer of Charles Russell Speechlys highlight the UAE’s strategic initiative, “We The UAE 2031,” which positions the nation as a central hub linking Africa to global markets as UAE-Africa trade soars. This vision underscores the UAE’s commitment to fostering economic ties and facilitating trade routes between Africa and the rest of the world.
Surpassing Traditional Investors
Snider and Mayer point out that the UAE has recently become the largest foreign direct investor in Africa, outpacing traditional powerhouses like China, the EU, and the US. This significant investment surge reflects the UAE’s proactive approach to engaging with African economies and its desire to play a leading role in the continent’s development.
Diverse and Strategic Investments
The UAE’s investments in Africa are not confined to a single sector or region. According to Snider and Mayer, the UAE has established a robust presence across various African nations, including Egypt, South Africa, Ethiopia, Nigeria, Algeria, and Uganda. These investments span critical sectors such as energy, food security, infrastructure, and logistics. Notably, entities like Dubai Ports World and AD Ports Group have developed over a dozen ports across Africa, enhancing trade connectivity and supply chain efficiency.
UAE as a Legal and Economic Gateway
Snider and Mayer emphasize the UAE’s role as a legal and economic conduit for investments into Africa. The UAE offers a business-friendly environment with multiple legal jurisdictions that cater to various legal traditions, making it an attractive base for investors targeting African markets. The onshore jurisdiction, operating in Arabic, aligns well with civil-law African states, while free zones like the Dubai International Financial Centre (DIFC) offer common law frameworks, appealing to investors familiar with Anglo-American legal systems.
Emerging Trends: Private Sector Engagement and Wealth Structuring
A notable shift highlighted by the authors is the increasing involvement of the private sector in UAE-African trade relations. While public sector investments have traditionally led the way, there’s a growing trend of private entities exploring opportunities in Africa. Additionally, African high-net-worth individuals are increasingly utilizing the UAE for wealth structuring, attracted by its favorable legal and financial infrastructure.
The UAE’s strategic investments and initiatives, as detailed by Thomas Snider and Adrian Mayer, signify a transformative phase in Africa’s economic landscape. By positioning itself as a central hub for trade and investment, the UAE is not only strengthening its own economy but also playing a pivotal role in Africa’s growth story.
To discover the full article, visit African Law and Business.
For more news on African trade, visit our dedicated archives.