The ongoing conflict in the Middle East has not deterred Gulf states from pursuing their investments in Africa. Countries such as Saudi Arabia, Qatar, Oman, and the United Arab Emirates are continuing to invest in the continent's energy, infrastructure, and logistics sectors. This engagement serves long-term objectives, including food security, economic diversification, and international influence. The investments are part of a broader strategy to expand the Gulf states' presence in Africa.
Saudi Arabia is expanding its presence in Africa, with the Red Sea Gateway Terminal (RSGT) announcing plans to take over the operation of the Cape Town port in August. This would mark the company's first foothold in Africa, capitalizing on South Africa's privatization efforts to revitalize its ports. The Cape Town port has faced challenges, ranking last globally in the 2025 container port performance index by the World Bank and S&P Global. RSGT aims to address these issues and join other Saudi companies, such as Zahid Group, ACWA Power, and Ajlan & Bros Mining, already operating in the country.
Saudi Arabia's ACWA Power has invested $700 million in a gas-fired power plant in Mauritania, with a capacity of 230 MW. The project, supported by the Saudi Development Fund, aligns with Riyadh's goal of achieving $25 billion in private investments in sub-Saharan Africa between 2024 and 2034. The company is also constructing an $800 million desalination plant in Senegal. These investments signal a shift in Saudi focus towards smaller African economies, beyond its traditional focus on North Africa and South Africa.
Qatar is leveraging its aviation sector to expand its influence in Africa. Qatari Diar, a subsidiary of the Qatar Investment Authority, launched the first phase of the $29.7 billion Alam El Roum luxury tourism complex in Egypt in August. The project includes a $4.5 billion financing package, marking the largest Qatari investment in Egypt to date. Qatar Airways has also announced new routes and increased frequencies to various African destinations, including Port Sudan, Kigali, and Marrakech.
Oman is strengthening its presence in Africa, with President Paul Kagame of Rwanda visiting Oman in August to sign two cooperation agreements and six memoranda of understanding. The agreements cover agriculture, logistics, investment, and strategic cooperation. In April, Botswana's President Duma Boko secured Oman's commitment to build a 500 MW solar power plant and a mining cooperation agreement. These projects aim to reduce Botswana's dependence on diamonds and support Oman's economic diversification.
The United Arab Emirates remains the largest Gulf investor in Africa, with a diverse portfolio of investments. In August, Abu Dhabi National Oil Company (ADNOC) finalized the acquisition of Shell's downstream assets in South Africa for $1 billion. ADNOC is also exploring a potential stake in Nigeria's Dangote refinery, which aims to increase its capacity to over 1 million barrels per day by 2030. Additionally, MTN and Dubai-based businessman Tarek Al Ashram are developing data centers in Nigeria and South Africa to support artificial intelligence deployment.
The engagement of Gulf Cooperation Council (GCC) states in Africa serves their strategic interests and provides benefits to African countries. The investments have contributed to Africa's economic growth, with Guinea attracting $7.8 billion in foreign direct investment in 2025. As the GCC states continue to invest in Africa, they are becoming increasingly important partners for the continent's development.
Key points
- Gulf states are investing in Africa's energy, infrastructure, and logistics sectors
- Saudi Arabia, Qatar, Oman, and the UAE are key players in Africa's development
- Investments serve long-term objectives, including food security, economic diversification, and international influence
