The UAE is the world's fourth largest investor in Africa, after only China, Europe, and the United States.
As the world gets closer to creating a global economy, Africa's role as the most potential market of the new millennium should not be overlooked. The UAE was early to see the enormous potential in Africa's growing markets and is working hard to expand into additional markets on the continent.
According to statistics recently provided by the UAE's Ministry of Foreign Trade, the UAE deals with just six non-Arab African nations (Angola, Kenya, Nigeria, Ethiopia, South Africa, and Tanzania).
Tanzania has recently emerged as a significant and noteworthy trading partner for the UAE. Tanzania-UAE trade is valued at about USD 2 billion per year. Tanzania imports USD 1.14 billion in commodities from the UAE on average, with petroleum products accounting for 53% of the total, while the UAE imports USD 85 million in goods from Tanzania.
The UAE is Kenya's fifth largest export destination and fourth largest import source. Kenya, renowned as East Africa's distribution and economic powerhouse, has had long and productive trading connections with the UAE. Kenyan exports to the UAE totaled USD 345.58 million.
Omar Khan, head of International Offices at the Dubai Chamber of Commerce & Industry, highlighted that the UAE is one of Africa's top sources of foreign investment during a prior webinar hosted by the Dubai Chamber in collaboration with Absa Group and DIFC.
Khan stated that the government is assisting the continent's economic development by sponsoring infrastructure projects and filling market shortages in a variety of Africa's fast-growing industries. He also stated that Africa will continue to receive more attention from investors in the coming years.
The webinar emphasized the significance of the African Continental Free Trade Area (AfCFTA) in bringing together all 55 African Union member states, encompassing a market of more than 1.2 billion people, including a burgeoning middle class, and a combined GDP of more than USD 3.4 trillion.
Looking ahead Emane Muhamad, economic researcher at the Dubai Chamber predicts that the strong momentum seen in the subregions of West and Central Africa would likely continue until the second half of 2020. Businessmen in Dubai now have the option to reposition themselves and seek new African markets.
Looking ahead, Africa's economic development will resume, albeit at a slower pace than previously. Tourism will have significant problems in the future, but the inherent attraction of Africa must not be overlooked. The region has a young, energetic populace; infrastructure that will increase production; and enormous untapped potential in agriculture and commodities.