Thomas Snider and Adrian Mayer write for African Law & Business on rising levels of private investment between the UAE and Africa
min readIn recent years, we have observed the growth of UAE-African economic relations, the changing nature of investment between the UAE and Africa, and a number of new risks and opportunities created by this dynamic. For example, key trends to watch include the UAE serving as a global hub for investment into (and out of) Africa, the diversification of UAE investors from the public to the private sector, and the rise of African wealth structuring via the UAE.
Thomas Snider, Partner and Head of International Arbitration, and Adrian Mayer, Partner and Head of our Africa desk, explore these themes in an article for African Law & Business.
In the piece, Thomas and Adrian explore the Middle Eastern country’s increasingly close relationship with the African continent amid rising levels of private investment. They explain:
Economic ties between Africa and Gulf Cooperation Council (GCC) states as a whole have grown substantially over recent years. However, the UAE is an outlier, with its investments in Africa far exceeding those of its neighbouring states. According to a recent report, the UAE is now the largest foreign direct investor in Africa, having overtaken China, the EU and the US, and has invested multiple times the amount of neighbouring GCC states such as Saudi Arabia. That said, in October 2024, Saudi Arabia announced a USD 41 billion commitment over ten years in Sub-Saharan Africa.
They go on to explore:
- The variety of the UAE's African relationships
- The UAE as an economic and legal hub for investment into Africa
- Public versus private sector investment in Africa
- Investment funds
- Commercial dispute resolution in Africa
- Investment protection provisions
- Investor-state disputes between the UAE and Africa
- Impact of the African continental free trade agreement (AfCFTA)
- Trade flows from Africa into the UAE
- African wealth structuring via the UAE
In conclusion, Thomas and Adrian argue that "UAE-African trade relations can only be expected to grow, and this is undoubtedly an area that Gulf investors should examine in more detail."
Trainee Solicitor Robin Hayden also supported on the piece.
Read the full article in African Law & Business here.
