According to data from Financial Time's investment tracker Foreign Direct Investment Intelligence, Kenya's stock of foreign direct investments (FDIs) from Dubai reached $253 million (Sh38.3 billion) in the five years leading up to June 2023. This indicates an increase in deals in important industries like software, IT, financial services, and food processing.
The president and CEO of Dubai Chambers, Mohammad Ali Rashed Lootah, stated that as more Gulf-based companies pursue transactions in Kenya, foreign direct investment (FDI) is expected to increase dramatically.
"We consistently feel that trade and investments add value, and more Dubai-based businesses are exploring agreements in Kenya," he said.
"We've met with a number of Kenyan business associations and Ken Trade, and they've guided us to a couple of bankable development opportunities," he said.
"Due to Kenya's significance as an export destination, we brought 19 different businesses from Dubai for business matching conferences, and I believe they are going to discover potential."
According to Mr. Lootah, non-oil bilateral commerce between Kenya and Dubai increased by 7% to $2.1 billion (Sh318.28 billion) in the previous year.
Financial services, telecommunications, food and beverage, industrial equipment, transportation and storage, software and IT services are among the major sectors in Kenya where investment deals from Dubai-based businesses have been recorded.
In October, for instance, Treasury Cabinet Secretary Njuguna Ndung'u declared that the Infrastructure Corporation of Africa LLC (ICA), based in the United Arab Emirates (UAE), would acquire more than 60% of Telkom Kenya's shares from private equity firm Helios following a competitive process.
The CS disclosed a bid by Pioneer General Insurance, a company jointly owned by three Dubai-registered firms, to purchase shares of Sidian Bank for Sh1.9 billion and acquire a 20 percent stake in the lender in the same month.
Less than a week ago, two companies from Dubai declared their intention to join the Kenyan dairy and construction industries.