Middle East Investors Show Growing Interest in African Deals.

Middle Eastern investors are increasingly focusing on investment opportunities in Africa.

Why does it matter: This strategic shift is mainly due to the continent's rapid economic growth and demographic advantages, which include a youthful population, significant urbanisation, a growing middle class, and an improving business environment for foreign investment.

Investments are gaining momentum in key sectors such as agriculture, technology, infrastructure, and renewable energy especially in developing green hydrogen.

• Data from fDi Markets indicate that investment from companies in Gulf Cooperation Council (GCC) countries—namely the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman—exceeded $53 billion by 2023, resulting in the initiation of 73 distinct projects across Africa.

Some interesting deals so far include:

• Abu Dhabi-based International Resources Holding acquired a 51% stake in Zambia's Mopani Copper Mines for $1.1 billion.
• Qatar Airways acquired 49% of RwandAir for $1.3 billion and a 60% stake in the Bugesera International Airport.
• Saudi Arabia-based ACWA is investing $4 billion in the Suez Canal Economic Zone in Egypt. The first phase is expected to produce 600,000 tonnes of green ammonia per year.
• Abu Dhabi National Energy Company planned an investment of $ 1.6 billion in Morocco's renewable sector.
• Dubai-based DP World has invested $300mn at the Port of Djibouti
• Mubadala the UAE sovereign investor has been co-investing managing a diverse portfolio of assets in the UAE

The bottom line: The intersection of infrastructure development and Africa's emerging green hydrogen economy is propelling these substantial investments. As GCC states continue to evolve and strengthen their bilateral investment treaties with African nations, the changing relationship should yield significant investments to facilitate marked economic and social advancements within Africa.