Middle Eastern investors pour into Africa

Middle Eastern investment into Africa is becoming one of the most important sources of new capital, with projects valued at more than $53bn announced in 2023. 

Companies based in Gulf Cooperation Council countries – the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman – announced 73 FDI projects in Africa valued at more than $53bn last year. The figures were slightly under announced deals in 2022, when up to $60bn was committed across 83 projects. More than 90% of the foreign direct investment is coming from the UAE and Saudi Arabia – ‘green’ hydrogen and renewable energy is the most important sector. 

The increased attention on Africa reflects a drive by oil-rich Gulf states to diversify away from fossil fuels and to back emerging technologies. Significant investment is also taking place to develop infrastructure, including ports, warehouses and data centres in Africa. 

The major projects include: Saudi Arabia-based ACWA Power plans to invest $4bn in a green hydrogen project in the Suez Canal Economic Zone, Egypt; UAE-based AMEA Power plans to build a hydrogen project in the Kenyan port of Mombasa; and Kuwait-based Agility plans to construct a number of data centres in Egypt and Ghana.