THE United Arab Emirates (UAE) is making a significant impact on Africa, positioning itself as a formidable competitor to China in the race to secure influence and resources on the continent. Using its financial clout, strategic diplomacy, and world-class logistics networks, the UAE is capitalising on opportunities created by decades of Chinese investment, while also carving out its own role in Africa’s future development.
Over the past two years, the UAE has overtaken China and Western countries to become the largest foreign direct investor in Africa, committing more than $97bn in 2022 and 2023. Analysts suggest this positions the UAE not only to compete with Beijing but also to collaborate alongside China, as well as other global players such as the United States, Europe, and India.
Growing influence and strategic investments
Foreign investment in Africa continues to fall short of the continent’s vast development needs, with an estimated gap of $130bn to $170bn annually. Given this, there is considerable room for both Chinese and Gulf investments to coexist and thrive. Albert Vidal Ribé, a research analyst based in Bahrain, highlighted that the UAE and its Gulf neighbours, such as Saudi Arabia, are unlikely to view China’s latest $51bn investment pledge in Africa as a threat.
China’s influence in Africa has been well established, particularly in infrastructure and energy sectors. However, the UAE has shown that it is ready to compete in these areas. For example, China’s investment in a railway linking Zambia, rich in minerals, to the Tanzanian port of Dar es Salaam will benefit both Chinese and UAE business interests. Emirati logistics company DP World, which has developed a $250 million container terminal at Dar es Salaam, will play a crucial role in shipping this cargo.
While DP World competes globally with major Chinese firms such as China Merchants, Cosco Shipping, and Hutchison Ports, another key Emirati player, Abu Dhabi Ports, is also making inroads. In partnership with India’s Adani Ports, it is developing a second terminal at Dar es Salaam, creating a direct link to the Indian Ocean and further enhancing UAE-India collaboration in East Africa. This partnership has the potential to weaken China’s dominance in the region, particularly in areas where India and China have long-standing rivalries.
In addition to East Africa, the UAE’s influence stretches to West Africa. DP World and Abu Dhabi Ports are investing over $500 million in the development of terminals at the Atlantic Ocean port of Luanda in Angola. These terminals will enable the efficient transport of minerals from landlocked Zambia and the Democratic Republic of Congo (DRC) to global markets, positioning the UAE as a key player in Africa’s mineral export economy.
Competition and collaboration with global powers
The UAE’s growing involvement in Africa comes at a time when global powers are also vying for influence on the continent. The United States and the European Union (EU) are financing the development of the Lobito Corridor railway, connecting Zambia and the DRC to Angola’s coast. Washington recently announced plans to extend this railway to Tanzania, further intensifying competition for control of strategic transport routes.
Alex Vines, director of the Africa programme at the London-based think tank Chatham House, notes that competition for Africa’s valuable resources, particularly critical minerals, is not just between China and the UAE. ‘There is a global competition for mining concessions, which will partly be decided by the offers on the table and partly by geopolitics, as African states seek diversification in their partnerships,’ Vines told the South China Morning Post (SCMP).
While the US may try to steer Emirati firms into more exclusive partnerships, analysts believe it would be a mistake for the EU or other Western powers to adopt an anti-China stance when dealing with the UAE. Mohammed Baharoon, director general of the Dubai Policy Research Centre, has argued that the UAE’s interest in Africa is driven by a desire to build global connectivity rather than competing directly with China. Unlike the West’s more confrontational approach to China, the UAE seeks to diversify its economy by building trade corridors connecting Africa with Asia, Europe, and South America.
A balanced approach: cooperation and competition
Despite the competition in certain sectors, the UAE remains open to collaboration with China, especially in non-controversial fields like renewable energy. In 2022, the UAE pledged $4.5bn to renewable energy projects in Africa, as part of its broader strategy to lead the transition away from oil dependency. Emirati renewables company Masdar, which has global ambitions, is exploring joint ventures with Chinese firms, signalling a willingness to cooperate in Africa as well.
Ribé noted that the UAE has no desire to align itself exclusively with Western firms to marginalise Chinese companies. Instead, the UAE aims to balance its interests by partnering with various global powers. ‘The UAE’s strategy is to entangle its interests with those of other great and rising powers and to preserve its strategic autonomy,’ he told the SCMP.
One area where the UAE and China could find common ground is in oil and gas production, particularly in Africa, where hydrocarbons and renewable energy are both seen as essential to meeting the continent’s future energy needs. China National Offshore Oil Corporation (CNOOC) is currently involved in the development of oilfields in Uganda, while Dubai-based firm Alpha MBM is close to finalising a $4bn deal to build Uganda’s first oil refinery. These projects demonstrate that both countries see Africa as a key region for energy investment, with the potential for future cooperation.
Managing commercial disputes
Despite occasional legal disputes, such as the ongoing case between DP World and China Merchants Holding over operating rights for a container terminal in Djibouti, analysts believe these issues are unlikely to significantly affect China-UAE relations. Ribé observed that even amidst such disputes, trade ties between China and the UAE remain strong, with both countries recognising the value of their broader economic partnership.
Vines from Chatham House agrees, suggesting that the wealth of investment opportunities in Africa will ultimately encourage both competition and collaboration between the UAE, China, and other global powers. He also emphasised that African governments should play an active role in managing these opportunities. ‘It should be up to African governments to frame what they want and manage these opportunities to unlock pro-poor economic growth,’ Vines said, highlighting the need for African nations to take charge of their development trajectories.
As Africa becomes an increasingly important battleground for global powers, the UAE’s rise as a major investor in the region underscores the shifting dynamics of international competition and cooperation. With its strategic investments, the UAE is not only challenging China but also positioning itself as a key player in Africa’s future development. By balancing competition with collaboration and maintaining its strategic autonomy, the UAE is set to shape Africa’s economic landscape in the years to come.
