Gulf countries are investing billions of dollars in Africa – in ports, energy, agriculture and raw materials. However, investors from the region are pursuing different strategies. What is behind this and what does it mean for African countries?
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Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.Deutsche Welle
21.07.2026. 12:35h
A few days ago, it was announced that ADNOC Distribution from the United Arab Emirates is acquiring Shell’s gas station and fuel distribution business in South Africa. The transaction is valued at around $1 billion, giving Abu Dhabi access to Africa’s largest fuel market.
This multi-billion dollar deal is just one example of a trend that extends far beyond the energy sector. Gulf states have been steadily expanding their economic presence on the African continent for years, despite occasional slowdowns. According to data from the British think tank Chatham House, Gulf Cooperation Council countries have invested more than $100 billion in Africa over the past decade. Of that, about $59 billion came from the United Arab Emirates, and almost $26 billion from Saudi Arabia.
“For the Gulf states, Africa is not a distant region, but their immediate neighbor,” points out political scientist Stefan Röhl from the German Institute for International and Security Affairs (SWP).
According to him, East Africa is located along key trade routes, and the two regions have decades-long economic and social ties. Therefore, the growing engagement of the Gulf states in Africa is not surprising.
“What they all have in common is the desire to make their economies less dependent on oil and gas,” says political scientist Maddalena Procopio of the European Council on Foreign Relations.
That is why the Persian Gulf countries have been searching for new a market of the future
Different strategies
According to analyses by Chatham House, the Brookings Institution, and the African Development Bank, capital is primarily invested in energy, ports, logistics, agriculture, and critical raw materials.
For Gulf countries, such investments secure trade routes, strengthen food security, and provide access to raw materials such as copper, cobalt, and lithium, which are key to the production of batteries, electric vehicles, and the development of artificial intelligence.
However, countries in the region have different approaches.
According to Prokopio, Saudi Arabia and the United Arab Emirates are primarily investing in renewable energym products. Qatar has so far played a much smaller role and has taken a much more selective approach to economic cooperation
Both experts believe that the United Arab Emirates has gone the furthest.
“You have to look at their politics as a whole,” says Stefan Roll.
Port management policies, logistics and economic interests cannot be separated from foreign policy and security objectives. Control of strategic port locations brings Abu Dhabi not only economic benefits, but also political influence along important trade routes.
Prokopio makes a similar assessment, pointing out that the Emirates link economic engagement with foreign policy and security interests much more strongly than other Gulf states.
“Saudi Arabia, on the other hand, is taking a more selective approach,” says Roll. “It is focusing on specific sectors, most notably energy. In addition, the Kingdom plays a significant role in financing development, both bilaterally and through multilateral institutions such as the Islamic Development Bank.”
This is why Roll does not see any real competition between Riyadh and Abu Dhabi.
Prokopio believes that the different strategies stem primarily from economic circumstances. While the Emirates, as a small trading state, is particularly dependent on international networks, Saudi Arabia must align its foreign trade activities with its own economic transformation.
Benefits for African countries
For many African countries, the growing interest of the Gulf states comes at the right time.
According to the African Development Bank, the continent’s financing needs are growing, while Western development aid is decreasing and China is becoming more cautious in granting loans.
Investment from the Gulf countries could therefore help close financial gaps in the areas of infrastructure, energy and logistics.
Prokopio sees an additional advantage.
Unlike China, Gulf countries have so far relied more on direct investment than on credit. Capital is available relatively quickly and is generally subject to fewer political requirements.
At the same time, African governments are given the opportunity to expand their circle of international partners.
The danger of new addictions
However, such engagement is not without controversy.
Chatham House warns that much of the investment is concentrated in ports, supply chains and raw materials, which primarily serves the strategic interests of the Persian Gulf countries.
The Brookings Institution warns of the danger of Africa being reduced to the role of raw material exporter again. Their experts believe that it is crucial to develop processing and the creation of added value on the continent itself.
And Stefan Roll sees this as the biggest challenge.
In his opinion, the problem is not the investments themselves, but the possibility of new forms of dependency through control of strategic infrastructure or the export of raw materials. Economic and geopolitical interests cannot always be clearly separated.
Madalena Procopio also calls for caution. The partnership between Africa and the Gulf countries is still in its early stages of development.
In her opinion, only the coming years will show whether billions of dollars from Abu Dhabi, Riyadh or Doha will contribute to the industrialization of African countries in the long term.
Therein lies the essence of the challenge.
The success of this partnership will not depend on the origin of the capital, but on whether African countries manage to create greater own added value from these investments.
Both the African Development Bank and the Brookings Institution point out the same thing: foreign investment can be an important driver of economic development, but it will only bring lasting results if it stimulates the development of domestic industry and long-term economic growth.
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