UAE eyes further investment into the African continent after Egypt deal

UAE eyes further investment into the African continent after Egypt deal
Abu Dhabi

The recent $35 billion deal between the UAE and Egypt, granting the Gulf state development rights to valuable Mediterranean real estate, has garnered significant attention. But it might just be the beginning of more similar deals to come. 

According to Bloomberg, the UAE is open to investing a comparable sum in another African nation given the right opportunity 

Prior to the Egypt deal, the UAE had already been investing significantly in Arica. In 2022, it emerged as the leading foreign direct investor in the continent, committing $52.8 billion, as per fDi Markets data. This figure dwarfs Chinese investment by 20 times and U.S. investment by seven times. Although UAE FDI decreased to $44.5 billion in 2023, it remained the dominant foreign investor in Africa.

Bloomberg reports that Africa's largest bank anticipates the UAE will evolve into one of the foremost sources of foreign investment in the continent over the next half-decade. These investments primarily target renewable energy, logistics, technology, real estate, and agriculture.

The UAE isn't alone among Gulf nations in seeking to broaden its influence in Africa. Saudi Arabia and Qatar have also undertaken similar endeavors in recent years.

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