GCC states invest over USD 100 billion in a variety of sectors across Africa, with the UAE leading the way.
The GCC states have invested over USD 100 billion in Africa over the years, according to a report by the London-based property consultancy company Knight Frank LLP, titled ‘Africa Horizons: The Continent’s unique guide to real estate investment trends and Opportunities (2023/2024)‘.
GCC states and Africa’s economic landscape
In a remarkable testament to the dynamic economic ties between the GCC states and Africa, over USD 100 billion has been strategically invested in continent, with the UAE firmly in the lead in terms of investments. The vast sums invested in Africa underscore the collaborative efforts driving economic growth and development across borders.
Sectoral expansion in focus
The investments span a diverse range of sectors, creating a rich tapestry of collaborations that weave together innovation and progress. From energy and infrastructure to technology and agriculture, the GCC states are fostering sustainable partnerships that transcend geographical boundaries, offering African nations a spectrum of opportunities to harness their latent potential.
The report ranked particular sectors by the number of investments pumped into them by the five GCC states, with financial services at 149, transportation and warehousing at 84, environmental technology at 64, ICT and electronics at 49 and construction at rank 47.
In those sectors, the UAE was by far the largest contributor, investing USD 59.4 billion, followed by Saudi Arabia at USD 25.6 billion, Qatar at USD 7.2 billion, Kuwait at USD 5 billion and Bahrain at USD 4.2 billion.
Citing the latest data published by the UAE’s Ministry of Foreign Trade, the report stated that “the total trade volume between the UAE and six non-Arab African countries, Angola, Kenya, Nigeria, Ethiopia, South Africa, and Tanzania, surpassed US$8 billion in 2020.” That was followed in 2021 by a further “71 projects worth USD 5.6bn, with the most significant being The Agtech Park in Egypt”.
The report highlighted that “In particular, the UAE remains focused on high-growth sectors, including infrastructure, energy, transport, logistics, and technology. Over the past decade, the UAE has emerged as one of the largest investors in Africa” among the GCC states. “It is also the fourth-largest investor globally, according to FDI Markets.”
Fostering development and empowerment
This strategic synergy between the GCC states and Africa isn’t merely about economic gains; it is a visionary endeavor that fosters development and empowerment on both fronts. As resources, knowledge, and expertise flow seamlessly, the investments drive infrastructure growth, job creation, and socio-economic advancement, ultimately shaping a brighter future for millions.
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