Trade between African and GCC countries stands at $ 121 billion in 2023, double of what it was in 2016. This growth is witnessed due to the efforts of Gulf countries to shift their economies forward, besides realizing the trade and investment opportunities in Africa. The UAE is a leading partner in innovation and infrastructure: strengthening relations as a key node.
The trade between Africa and the GCC countries has increasingly boosted; the African exports to the Gulf region in the year 2023 were estimated to be $69.4bn. Purchases from GCC states stood at $51.5 billion to highlight that the trade is relatively mutual. Egypt, South Africa, Nigeria, and Morocco all advanced as major trading partners by using their geographical and natural advantages as a way of enhancing relations with GCC countries.
This upsurge has shown the Gulf states especially the UAE and Saudi Arabia seeking to diversify their economic relations with African nations that are beyond the hydrocarbon sector. First, the UAE has presented itself as an essential channel to promote trade due to the exquisite infrastructure and sound policies that lure African investors.
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The study confirms that GCC countries have committed over $100 billion to Africa between 2012 and 2022, although the UAE has invested $59.4 billion, the highest of all the GCC investors. They relate to infrastructure, renewable energy, and technology for the enhancement of cooperation.
The UAE continues to pull ahead in terms of innovation and economic growth in comparison to many nations and this is why African countries consider them their ideal partner. This has been exemplified by its activities in renewable energy development and trade.
