Saudi Arabia, UAE Top Gulf Investments in Horn of Africa

Saudi Arabia, UAE Top Gulf Investments in Horn of Africa

A recent study pointed to the growth of Gulf investments in the countries of the Horn of Africa, especially in Ethiopia, Sudan, Somalia and Djibouti.

Africa has become an increasingly vital partner for the Gulf states. Investment flows from the Arab Gulf to sub-Saharan Africa amounted to about $3.9 billion between 2005 and 2015, according to recent statistics based on completed projects.

The Russian-Ukrainian crisis highlighted the strategic importance of the Horn of Africa region in terms of its strategic location overlooking the oceans, global trade routes and straits heading from the Gulf states to Europe and the United States.

A recent study issued by the King Faisal Center for Research and Islamic Studies on foreign investment in African countries showed that Gulf companies invested more than $1.2 billion in the sub-Saharan African region, from January 2016 to July 2021, with 88 percent of projects coming from the UAE and Saudi Arabia, followed by Qatar and Kuwait.

The study noted that the region enjoyed attractive investment potential, as 44 percent of its agricultural area is still unexploited, in addition to its great livestock and oil wealth.

Saudi Arabia invests about two million hectares in a number of African countries, while a large proportion of the