Africa–GCC partnership signals a strategic reordering of global capital flows

• Emerging Africa–GCC partnership reflects converging strategic interests: Africa’s scale, demographics and growth potential on one side, and Gulf capital, logistics expertise and diversification imperatives on the other.
• Last year, GCC alliance announced 73 foreign direct investment (FDI) projects in Africa valued at more than $53 billion, underscoring the scale and seriousness of Gulf engagement.

Africa and the Gulf Cooperation Council (GCC) are entering a new phase of economic alignment, one that signals a structural shift in global trade and investment flows rather than a cyclical uptick.

Formalised in 2025, the emerging Africa–GCC partnership reflects converging strategic interests: Africa’s scale, demographics and growth potential on one side, and Gulf capital, logistics expertise and diversification imperatives on the other.

The GCC, which comprises of the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman countries, has moved decisively to position itself as a long-term economic partner to Africa, amid intensifying global competition for access to the continent’s markets, resources and infrastructure opportunities.

This intent was reaffirmed at the Special Meeting on Global Collaboration, Growth, and Energy for Development, held in Riyadh, Saudi Arabia, where Gulf and African stakeholders outlined a framework for deeper trade, investment and development cooperation.

“This new economic partnership between the Gulf countries and Africa is expected to grow in value, thanks in part to the Africa Continental Free Trade Area,” reads the media communiqué released at the meeting.

At the same forum, the GCC announced 73 foreign direct investment (FDI) projects in Africa valued at more than $53 billion, underscoring the scale and seriousness of Gulf engagement. According to data from UNCTAD and the Arab Coordination Group (ACG), GCC-backed development finance and commercial investments are increasingly concentrated in infrastructure, logistics, energy, agribusiness and industrial zones—sectors critical to Africa’s long-term productivity.

Trade momentum has already accelerated. The meeting noted that total imports and exports between the UAE and sub-Saharan Africa have increased by more than 30 percent over the past decade, reflecting deepening commercial ties.

This trend is corroborated by Business Insider Africa, which reports that: “Between 2012 and 2025, GCC foreign direct investment in Africa rose to over $179 billion, led by the UAE with $64.3 billion, Saudi Arabia with $28.7 billion, and Qatar with $9.2 billion.”

Notably, trade between Saudi Arabia and sub-Saharan Africa has expanded twelvefold over the same period, a data point that aligns with figures from the Saudi General Authority for Statistics and the African Development Bank (AfDB), both of which point to Africa’s growing relevance in Gulf trade diversification strategies.

For investors, the logic underpinning this corridor is becoming clearer. As Adil Shafi, Country Partner at AC&H Legal Consultants, observed: “The GCC-Africa investment corridor reflects a maturing relationship…Africa offers scale and opportunity, while the Gulf provides capital, expertise, and strategic vision.”

“We are witnessing a realignment of global investment flows that places Africa at the centre of future growth.”

GCC development finance to Africa

According to the Arab Coordination Group, cumulative GCC development finance to Africa has already surpassed $60 billion over the past decade, led by Saudi Arabia, the UAE and Qatar. The ACG notes that this reflects a deeper economic recalibration: “This reflects a structural shift where GCC economies are now aiming to diversify away from hydrocarbons and tap into Africa’s growing consumer base, energy potential, and infrastructure needs.”

At the centre of this renewed momentum is the African Continental Free Trade Area (AfCFTA), the world’s largest free trade area by number of participating countries. Launched in 2021, AfCFTA creates a single African market projected to reach 1.7 billion people and $6.7 trillion in combined consumer and business spending by 2030, according to the AfCFTA Secretariat and the World Economic Forum (WEF).

For Gulf investors, AfCFTA reduces fragmentation risk, improves scale economics and enhances the bankability of cross-border projects. “The Africa Continental Free Trade Area (AfCFTA) will accelerate this trend by offering GCC companies access to a larger, unified African market,” details the press report.

The GCC’s geographical proximity to Africa compared with competitors in East Asia and the West, adds another strategic advantage, particularly in sectors such as food security, energy transition, ports and logistics, where supply chain resilience is increasingly prized by global investors.

Africa–GCC partnership driving long-term strategic alignment

Take Dubai-based logistics multinational Dubai World’s entry into Africa for instance. In Egypt, DP World invested $80 million in the Suez Canal Economic Zone to develop a 300,000-square-metre logistics park in Sokhna, strengthening trade corridors between Africa, the Middle East and Asia.

Further south, DP World signed a 30-year concession to upgrade Tanzania’s Dar es Salaam port, a gateway that serves not only Tanzania but much of East and Central Africa. Kuwait’s Agility Logistics has also expanded its African footprint, driving trade volumes while partnering with and empowering local logistics providers.

Beyond capital deployment, the GCC has also played a catalytic role in shaping Africa’s trade architecture. At the World Economic Forum, Gulf states were instrumental in launching the Forum Friends of the AfCFTA, an initiative designed to mobilise private sector participation and strengthen public–private collaboration.

“Companies from the GCC region have actively contributed to this initiative under the private sector action plan for the AfCFTA,” the report noted.

Taken together, these developments suggest that the Africa–GCC partnership is evolving from opportunistic engagement into a long-term strategic alignment, one that blends capital, policy coordination and market access at scale.

“The Africa-GCC partnership is expected to deepen and already there are increased investments, trade and joint ventures that are contributing to economic growth across the continent,” the meeting concluded.

For investors and corporate leaders, the message is increasingly difficult to ignore: Africa is no longer a peripheral frontier market in Gulf strategy, it is becoming central to the region’s post-hydrocarbon future.

GCC, Africa trade: Growing ties

Titled “Rising Gulf Investments in Africa: A New Era of Strategic Partnership” the ALN report that was published in October 2025 notes that the UAE has become one of the top five investors in Africa, itself commanding cumulative investments in excess of USD 60 billion.

The report details this investment to be focused on logistics, renewable energy, ports, and agriculture.

“The UAE–Africa trade surged by 30 percent to USD 100 billion in 2025,” reveals the report.

It further details that the energy sector remains to be the key focus of Gulf investment in Africa.

“As global demand shifts towards renewables, GCC investors are positioning Africa as a key partner in the green transition,” reads the report.

This increased investment had not gone unnoticed, the Brussels International Centre recently reported that a group of Emirati firms announced six major green hydrogen projects in Sub-Saharan Africa in 2025.

Of the said investments, the most notable and largest is the USD 34 billion green hydrogen facility in Mauritania.

This project is expected to deliver 10GW of clean energy while a similar but smaller project by AMEA Power looks to install 1GW of green hydrogen power output in Angola, Djibouti, Ethiopia and Kenya.

Then you have the Abu Dhabi National Energy Company (TAQA) which is focusing it’s investments USD 10 billion renewable energy investment across sub-Saharan Africa, the report details.

Also Read: Why Global Capital Is Moving to Africa’s Urban Property Markets

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