UAE to Boost Influence in Horn of Africa through Logistics and Security Initiatives

UAE, 28 June, 2024 :  The UAE is set to become a key player in the Horn of Africa, focusing on logistics and maritime trade supported by a security corridor, according to recent analysis.

The UAE's strategic interest in the Horn is driven by its proximity to the Middle East, particularly Yemen, a critical area for Gulf markets. The UAE has expanded its port operations in the Red Sea and East Africa, with a military presence in the Horn, the Red Sea, and the Gulf of Aden.

Sayen Gohil, Sub-Saharan Africa Country Risk Analyst at BMI, noted that the UAE's national plan emphasizes logistics and maritime trade as part of its post-oil economic diversification, paired with an increased security presence in the region. This aligns with the activities of other emerging powers such as Saudi Arabia and Turkey, making the Horn a focal point for regional politics and intra-MENA relations.

Recent Houthi attacks in the Red Sea highlight the importance of this maritime route, further consolidating the UAE's presence. Over the past decade, the GCC states have invested $100 billion in Africa, with the UAE contributing $60 billion. 

The UAE's global assets under management exceed $1.8 trillion, with significant investments in strategic non-oil sectors domestically and abroad. Mariette Kas-Hannah, a senior MENA analyst at BMI, mentioned that the UAE has signed multiple economic agreements with sub-Saharan African countries.

The UAE is now the fourth largest investor in Africa after the EU, China, and the US, and the third largest importer of African goods in 2022. The country positions itself as an alternative trade partner to the US and China.

The UAE has shown interest in the Democratic Republic of Congo (DRC) due to its vast untapped mineral wealth, despite the volatile Eastern region with over 100 active armed groups. The UAE has provided military aid to DRC to support its economic integration into these untapped markets.

In renewable energy, the UAE has been active in financing projects in the region. Dubai-based AMEA Power is a major contributor, developing over 1,200 MW of solar PV and wind projects. The Abu Dhabi Fund for Development also plays a crucial role in financing these initiatives.

Source : www.zawya.com