The Gulf’s strategic African footprint

Ports, minerals and geopolitics are driving deeper Gulf engagement across Africa.

The United Arab Emirates (UAE) is now one of Africa’s most strategically important external investors. The often-quoted US$110 billion figure refers to UAE investment projects announced between 2019 and 2023, rather than realised Foreign Direct Investment (FDI).

UAE officials say this makes the country the world’s fourth-largest investor in Africa, behind the US, China and European Union. White & Case and FDI Markets had already identified the UAE as Africa’s fourth-largest investor using project-based FDI data.

Saudi Arabia and other Gulf states are also increasingly treating Africa as a strategic extension of their economies and geopolitical influence.

Horn of Africa particularly important

The Horn of Africa is particularly important. Its position beside the Red Sea, Gulf of Aden and Bab el-Mandeb places it astride one of the world’s critical maritime trade corridors. The UAE’s DP World has turned Berbera in Somaliland into a strategic logistics hub, linking the port with Ethiopia and directly connecting it to Jebel Ali.

This infrastructure strategy increasingly intersects with critical minerals.

The gulfs growing African footprint

UAE-backed International Resources Holding (IRH) owns 51% of Zambia’s Mopani Copper Mines and is building a wider African portfolio spanning Zambia, Tanzania, Angola and South Africa. Its stated strategy includes copper, lithium and other strategic minerals.

Saudi Arabia is following a similar path. Manara Minerals, backed by Saudi Arabia’s Public Investment Fund and Ma’aden, acquired 10% of Vale Base Metals in 2024, gaining exposure to copper, nickel and cobalt. Manara has also been exploring opportunities in Zambia’s copper sector.

The changing African equation

For investors, this changes the African equation. Zambia, the DRC, Angola, Tanzania, South Africa and the Horn of Africa deserve increasing attention not simply because of their mineral deposits, but because of their position within emerging Gulf-controlled capital, logistics and supply-chain networks.

The competition between Gulf states, China, the US and Europe will increasingly influence which projects receive capital, infrastructure and market access. For investors entering Africa, understanding the geopolitics surrounding a mineral asset may therefore become almost as important as understanding the geology.

Image: North Africa and the Horn of Africa are becoming increasingly important to Gulf states. Image credit: Wikimedia Commons.

The Gulf’s strategic African footprint