In recent years, the narrative of investments in Africa has been dominated by China. But a rising star is transforming the landscape quietly yet decisively: the United Arab Emirates (UAE).

UAE: A New Investment Powerhouse

  • Between 2019 and 2023, the UAE committed a staggering $110 billion to Africa far outpacing investments from the UK, France, and even China.
  • In 2022 and 2023 alone, further UAE pledges reached $97 billion.

This surge comes amid a broader wave: foreign direct investment (FDI) into Africa hit record highs in 2024. UNCTAD reports FDI soared 75%, reaching $97 billion, capturing 6% of global FDI flows (up from 4% the previous year. Even adjusting for a major urban project in Egypt, net FDI still rose 12%, to $62 billion.

UAE Driving North Africa’s Boom

North Africa accounted for the lion’s share of 2024 FDI $51 billion, up nearly 276% year-on-year. Egypt alone received $46.6 billion, compared to just $9.8 billion in 2023. This rise was largely fueled by Abu Dhabi’s sovereign fund ADQ, which pledged $24 billion to develop Egypt’s new coastal city, Ras a-Hekma.

Ports and Logistics: Strategic Expansion

Investment in port infrastructure and maritime logistics is where Abu Dhabi and Dubai are making their mark:

  • DP World has invested approximately $3 billion in African ports, establishing operations from Mozambique to Algeria and encircling the continent.
  • AD Ports Group, backed by ADQ, has secured 30-year and 20-year management concessions in Pointe Noire (Republic of Congo) and Luanda (Angola) respectively, committing $250 million for modernization in Angola.
  • In Somaliland’s Berbera Port, DP World and the UAE are building a major regional hub $300 million invested in port and free-trade zone infrastructure, plus a 25-year naval base concession.
  • Combined, DP World and AD Ports are operating or developing more than 15 port assets across Africa.

Notable projects include:

  • Port of Ndayane (Senegal) a deep-water container terminal under construction, involving a $1.2 billion investment by DP World, the largest private-sector investment in Senegal’s history. It is projected to handle 1.2 million TEUs per year and eventually contribute 3% of Senegal’s GDP and nearly 2.3 million jobs.
  • Berbera Corridor connecting Berbera port with Hargeisa and Ethiopia, projected to increase port volumes from 3 million tons in 2016 to 18.1 million tons by 2050.

Why Early Investors Dominate

Let’s zoom out to the broader investment landscape:

  • FDI into Africa rebounded in 2021 to $83 billion, then surged further to $94–97 billion in 2024.
  • China remains a major investor, but Europe and the US hold larger FDI stocks; yet investment flows are increasingly diversified. From 2014–2018, the UAE ranked among the top sources with $25.3 billion in flows to Africa.
  • The continent remains underinvested in logistics: transportation costs are 50–175% higher than elsewhere in the world making logistics infrastructure a critical bottleneck and opportunity.

Those who invest early before fixes are obvious, markets are clearly formed, or profits are immediate are the ones who ultimately dominate. Waiting for clarity risks not just higher entry costs, but also being locked out entirely.

Final Thought

The UAE’s powerful economic push into Africa ranging from infrastructure to renewable energy and real estate embodies early, strategic commitment. For LinkedIn, this reads as:

Early, bold investment builds the future not just in Africa, but in global leadership.