Gulf countries are increasing their presence across the Horn of Africa. Evidence is mounting that relations between countries like UAE and Saudi Arabia with Ethiopia is becoming stronger. It has been reported earlier that, a property developer from the United Arab Emirates (UAE) is working on the largest and most expensive project of its kind in the Ethiopian capital, Addis Ababa. Data available 2000 and 2017 indicate that Gulf countries invested upwards of USD 13 billion in the Horn of Africa, mainly in Sudan and Ethiopia. The countries like Ethiopia reap major economic benefits of Gulf investments.
It is well known that Ethiopia faces severe shortages of hard currency. In order to tide over the crisis Prime Minister Abiy Ahmed's first priority was to secure USD 3 billion in aid and investments from the UAE, which included a USD 1 billion deposit in the country’s central bank. In a further boost to the Gulf policy, Ethiopia and Saudi Arabia have agreed to increase bilateral economic and investment ties. A business delegation led by Mr. Ahmed Shide, Finance Minister of Ethiopia and the Governor of the National Bank of Ethiopia met with the Saudi counterpart Mohammed Al Geden and other higher officials of Saudi Arabia to discuss ways to increase longterm economic wealth creation and trade growth between the two regions.
A recent press release issued by the Office of the Spokesperson of the Ministry of Foreign Affairs said that the delegates represented from the two countries have agreed to boost their economic and investment relations. The agreement between the two countries focused on economic partnership in agriculture, infrastructure development, energy, manufacturing industries and trade.
The agreement is reportedly based on ascertaining benefits for both countries and Saudi Arabia officials had reaffirmed their commitment to support investment programs to be conducted by Saudi business persons.
The Ethiopian Finance Minister Ahmed Shide had also met with the Saudi Ministers of Agriculture, Environmental Protection and Water Resources to boost investments in these core sectors.