The United Arab Emirates (UAE) is rapidly expanding its economic and political influence across Africa, positioning itself as a major foreign investor, according to an FT report. In 2022 and 2023, the UAE committed $97 billion in new African investments across various sectors including renewable energy, ports, mining, real estate, communications, agriculture, and manufacturing. This figure is three times more than China's pledged investments during the same period, according to fDi Markets. A UAE official stated that total investments into Africa amount to $110 billion, highlighting the country's commitment to sustainable development and growth on the continent. Over the past decade, the UAE has consistently been one of the top four investors in Africa, with Ken Opalo of Georgetown University noting that the UAE is "going toe to toe with Beijing."
Beyond direct investment, the UAE is also solidifying its role as a key financial hub for African companies. The number of African companies registered in Dubai surged to 26,420 by 2022, as reported by the Dubai Chamber of Commerce, with Oxford University's Ricardo Soares de Oliveira calling Dubai "New York for Africans now." The UAE's strategic port investments are particularly notable, with DP World, a Dubai-based logistics company, investing some $3 billion across nearly a dozen African countries. This includes a $300 million investment in the Port of Berbera and an adjacent free-trade zone in Somaliland, where the UAE also secured a 25-year concession for a naval base.
The UAE's growing presence in Africa is not without geopolitical implications. Senior Somali officials and others view the UAE's actions as a deliberate play for political influence in the region, with Somaliland's finance minister, Saad Ali Shire, declaring the UAE a "new superpower in Africa." Western officials acknowledge the increasing complexity introduced by the UAE's and other Gulf countries' influence, with a former Biden administration official describing the UAE as a "challenging actor" that simultaneously invests in positive ways and acts in destabilizing ways. The US, while not approving of all UAE actions, considers it a vital global ally.
