UAE Becomes Africa’s Largest Investor, Committing $110 Billion to New Projects

The United Arab Emirates (UAE) has emerged as the largest investor in new business projects in Africa, committing $110 billion between 2019 and 2023.

This investment surpasses those made by the UK, France, and China, with $72 billion directed towards renewable energy projects. Major Emirati companies, such as Dubai’s DP World and Abu Dhabi Ports, have expanded their operations across the continent, reflecting the UAE’s efforts to diversify from oil and gas.

Despite the significant financial commitment, there are concerns about labor rights and environmental standards associated with UAE investments. Additionally, issues such as financial troubles at Zambia’s state-owned ZESCO and transparency in gold exports to Dubai have raised questions about the legality and transparency of some ventures.

The UAE’s Ministry of Economy recently confirmed that the UAE is the fourth-largest global investor in Africa, with a total investment of $60 billion.

Over 21,000 African companies operate in the UAE, highlighting the strong economic ties between the two regions. While the UAE’s financial involvement offers substantial benefits for Africa, it also presents challenges that need to be addressed as these partnerships continue to grow.