Africa is quickly becoming one of the United Arab Emirates' most important markets. As the world steps closer to establishing a sustainable economy, Africa's role as the most exciting market of the new millennium should not be overlooked. The United Arab Emirates was able to recognise the enormous promise in Africa's developing markets and is working hard to reach newer markets on the African continent.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, has identified Africa as one of Dubai's most attractive commercial partners in the coming years. Trade between the UAE and many African countries has been steadily increasing in recent years, according to Featured Exporters to Africa.
According to data published by the UAE Ministry of Foreign Trade, the UAE has total trade with six non-Arab African countries (Angola, Kenya, Nigeria, Ethiopia, South Africa and Tanzania).
However, trading practices have recently taken on new dimensions.
Other African nations, on the other hand, have emerged as potential new trading partners for the UAE. Nigeria, for example, has emerged as a key destination for UAE exports and re-exports. Among the six African countries listed above, the UAE's trade with Nigeria increased the most.
Tanzania, too, has recently emerged as a significant and noteworthy trading partner for the UAE. Tanzania-UAE trade increased significantly last year to US$870 million, up from US$510 million the previous year – a significant rise by any measure.
Kenya, known as the "Gateway to East Africa," has long been an important trading partner for the UAE in the sub-Saharan region. Kenya, known as East Africa's logistics and industrial centre, has had long and prosperous trading ties with the UAE. Trade between Kenya and the UAE has increased.
Surprisingly, the UAE is not only a leading exporter of products to many African countries, but it is also a top ten importer of goods and commodities for as many as ten African countries, including Kenya. The UAE's overall non-oil trade with Africa is expected to increase higher in the coming years as the UAE authorities make concerted efforts to diversify their trade and economic activities on the African continent. The UAE, in particular, wishes to play a larger role in the development of many main sectors in African countries, including tourism, infrastructure, oil, gas, mining, electricity, transport, logistics, ports, information technology, and mobile phones.
“The UAE has retained strong economic and commercial relations with Africa,” said Shaikha Lubna, the UAE's Minister of Foreign Trade, in a recent interview. “From a market standpoint, the proximity of our territory to the continent makes it a more comfortable collaborator relative to Western companies,” she said.
The UAE is also a major driver of foreign direct investment into Africa. Dubai's government has successfully collaborated with several African governments on critical infrastructure, telecommunications, and tourism programmes. Dubai World, a government-owned company, has a special investment arm for African investments called Dubai World Africa, which focuses on the acquisition, growth, and management of prime assets on the African continent and the Indian Ocean Islands.
Dubai World has 30 construction projects in Africa, including marine ports in Djibouti, Algeria, Dakar (Senegal), and Maputo (Mozambique); nature parks in Rwanda and South Africa; and a hotel project on the Comoros Islands.
With Africa expected to emerge as one of the leading markets for a wide variety of commodity and capital products in the coming years, many new policies are bound to concentrate ever further on the lucrative African markets. As the spotlight shifts to Africa, many nations, including China, India, and Brazil, are now jockeying for a place to capitalise on the continent's numerous industry and investment opportunities.
Without a question, Africa is the industry of the future.