Why Gulf states are investing billions in Africa
Gulf Cooperation Council states, particularly the UAE and Saudi Arabia, have invested over $100 billion in Africa over the last decade. These investments aim to diversify their economies away from hydrocarbons and strengthen regional trade ties.
Why it matters
The shift in investment patterns reflects a broader geopolitical strategy by Gulf nations to expand their economic influence in emerging African markets.
Wealthy Gulf states are investing billions in African countries. But the nations involved all have different objectives. What's behind the investments and what's in it for African countries?
https://p.dw.com/p/5H9wB Massive investment in Africa from Abu Dhabi, one of the the United Arab Emirates Image: Markus Mainka/picture alliance Advertisement The news came out just a few days ago: ADNOC Distribution, a petroleum retailer in Abu Dhabi, the capital of the United Arab Emirates , will take over energy giant Shell's petrol stations and fuel business in South Africa. The price is thought to be around $1 billion (€870 million). With this purchase Abu Dhabi has assured itself of a place in the African continent's fuel market.
This billion-dollar deal is just one example of a larger trend. Even taking into account the occasional small declines, the Gulf states have been growing their economic presence in Africa for years now.
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