Latest news with #AnnaJacobs
Miami Herald
18-05-2025
- Business
- Miami Herald
UAE is pouring money into Africa, seeking resources and power
Look at the chief economic and strategic spots across Africa -- ports for key trade corridors, mines that produce critical minerals, large renewable energy projects -- and you will find the United Arab Emirates. As the United States and, to a lesser extent, China reduce their investment, aid and presence on the African continent, the Emirates is using its enormous wealth and influence to fill the void. Persian Gulf investments in Africa, primarily by the Emirates, have exploded in recent years. Since 2019, $110 billion worth of deals -- mostly by firms tightly aligned with the ruling powers -- have been announced, dwarfing amounts pledged by any other country. 'The UAE is turning into a dominant foreign player' in much of Africa, said Anna Jacobs, a nonresident fellow at the Arab Gulf States Institute in Washington. Its efforts to become a world leader, particularly in finance and technology, are likely to be bolstered under President Donald Trump, Jacobs said. The president, seeking to draw Emirati money to the United States, paved the way this past week for the sale of American advanced artificial intelligence chips to the Emirates. The Emirates' wide-ranging investments and efforts to become a world leader in AI are part of an ambitious plan to increase the country's influence, particularly over global supply chains. Like other oil-producing nations in the Persian Gulf, the Emirates is looking to diversify its economy away from fossil fuels, and it sees Africa as an essential part of the plan. The continent has vast mineral resources, a growing population, agricultural potential and a strategically important location bordering the Red and Mediterranean seas as well as the Indian and Atlantic oceans. Powerhouse Emirati corporations based in Dubai and Abu Dhabi with political connections are in dozens of countries across Africa. AMEA Power is already building or operating clean energy plants in Burkina Faso, Djibouti, Egypt, Ethiopia, Ivory Coast, Kenya, Morocco, South Africa, Togo, Tunisia and Uganda and has plans to expand. Abu Dhabi National Energy Co. has projects in Morocco, Senegal and South Africa and is participating in a project to invest $10 billion in renewable energy in sub-Saharan Africa. DP World, the gargantuan government-backed ports and logistics operator, has invested billions of dollars in ports and economic free zones from Algeria to Zambia, including in the Berbera port city in the breakaway republic of Somaliland, where the Emirates also has a military base. Last summer it announced that it would spend another $3 billion on African ports over the next three to five years. Last year, the Emirati International Holding Co. invested more than $1 billion for a 51% share in the Mopani Copper Mines in Zambia. Spending in Egypt has also soared. Last year, the Emirates agreed to invest $35 billion to develop a new city and tourism destination on Egypt's Mediterranean coast. Emirati investment in Africa has ramped up as China's has tapered off. Once the biggest foreign investor on the continent through its Belt and Road Initiative, China still has a large presence, but Beijing has pulled back in recent years after a series of debt crises in Africa and economic problems at home. In 2022 and 2023, the Emirates announced a total of $97 billion in investments in Africa -- three times China's total, according to fDi Markets, a database of foreign investments. U.S. investment in 2023 was about $10 billion. Experts said that even though not all of these pledges would pan out, they showed an overall commitment to doing business on the continent. The Emirates is also looking to build trade and has signed bilateral economic partnership pacts with three African nations, including Kenya, since the year's start. The Emirates has focused its investments on 'key future-focused sectors such as renewable energy, food security, digital transformation, infrastructure and logistics over the past five years,' said a spokesperson for the Emirati ministry of foreign affairs. In addition, the country's total foreign assistance in Africa exceeded $1 billion in 2023-24, according to a government spokesperson on trade. Meanwhile, Trump has fast-tracked the United States' exit from Africa, ending billions of dollars in funding, dismantling the U.S. Agency for International Development and ending all contributions to the African Development Bank. The State Department's reorganization plan also calls for the elimination of most operations in the region. Britain has also tightened its flow of money into the continent in recent years as it has increased aid to Ukraine and increased its own military spending. The Trump administration's actions are extreme, said Ricardo Soares de Oliveira, a co-director of a program on African governance at Oxford University, but they reflect a larger global trend away from development aid and liberal values. The world is transitioning to an era in which the focus on democracy and free markets is becoming less significant, Soares de Oliveira said. 'A more business-focused approach is going to be the shared norm,' he added. That isn't to say the Emirates does not have substantial strategic and political interests in Africa. What's different is that it has delegated statecraft to private interests and businesses, almost all of which have ties in some way to the government or ruling families, said Andreas Krieg, a fellow at the Institute of Middle Eastern Studies at King's College London. These enterprises are expected to generate both economic and strategic returns. 'The UAE has revolutionized statecraft for a small country,' Krieg said. It has fewer than 1 million citizens, is smaller than the state of Indiana and has a relatively tiny military. Yet, he said, 'it's very much playing the game of a middle power.' Some of the Emirates' political choices have stirred concerns. Sudan's government has accused the Emirates of fueling genocide with its backing of the Rapid Support Forces, the paramilitary group engaged in a civil war that has killed 150,000 and displaced 14 million people. Recently, Sudan's military cut diplomatic ties with the Emirates, which has said it has provided only humanitarian assistance. The Emirates has also been accused of funneling money to the Russian mercenary group Wagner in both Sudan and Libya. 'There is no such thing as clean or dirty money in the UAE,' Krieg said. Ken Opalo, an associate professor at Georgetown University's School of Foreign Service, said the Emirates aimed to be the world's gateway to Africa for investment and trade, whether legal or smuggled. The gold trade alone that passes mostly through Dubai is worth $30 billion, he said. 'The UAE has developed a robust regulatory framework that ensures that the trade in gold is conducted with the maximum security, integrity and transparency,' an Emirati official said. As Trump's visit to the Gulf region this past week illustrates, Washington considers the Emirates a reliable ally in the region and in Africa. The two countries have maintained close security ties. But Washington may underestimate just how valuable the commercial partnership between the Emirates and China is. Ambitious investments in green energy in Africa rely on Chinese technology, minerals and goods. 'The UAE ultimately militarily relies on the U.S., but it also wants to position itself as the Switzerland of the Gulf where everyone is welcome,' Opalo said. 'They want to be a renewables hub, and it's hard to play that game without engaging China.' This article originally appeared in The New York Times. Copyright 2025
Straits Times
17-05-2025
- Business
- Straits Times
UAE is pouring money into Africa, seeking resources and power
Persian Gulf investments in Africa, primarily by the United Arab Emirates, have exploded in recent years. PHOTO: REUTERS Look at the chief economic and strategic spots across Africa – ports for key trade corridors, mines that produce critical minerals, large renewable energy projects – and you will find the United Arab Emirates. As the United States and, to a lesser extent, China reduce their investment, aid and presence on the African continent, the Emirates is using its enormous wealth and influence to fill the void. Persian Gulf investments in Africa, primarily by the Emirates, have exploded in recent years. Since 2019, US$110 billion (S$143 billion) worth of deals – mostly by firms tightly aligned with the ruling powers – have been announced, dwarfing amounts pledged by any other country. 'The UAE is turning into a dominant foreign player' in much of Africa, said Ms Anna Jacobs, a non-resident fellow at the Arab Gulf States Institute in Washington. Its efforts to become a world leader, particularly in finance and technology, are likely to be bolstered under President Donald Trump, Ms Jacobs said. The president, seeking to draw Emirati money to the United States, paved the way this week for the sale of American advanced artificial intelligence chips to the Emirates. The Emirates' wide-ranging investments and efforts to become a world leader in AI are part of an ambitious plan to increase the country's influence, particularly over global supply chains. Like other oil-producing nations in the Persian Gulf, the Emirates is looking to diversify its economy away from fossil fuels, and it sees Africa as an essential part of the plan. The continent has vast mineral resources, a growing population, agricultural potential and a strategically important location bordering the Red and Mediterranean seas as well as the Indian and Atlantic oceans. Powerhouse Emirati corporations based in Dubai and Abu Dhabi with political connections are in dozens of countries across Africa. AMEA Power is already building or operating clean energy plants in Burkina Faso, Djibouti, Egypt, Ethiopia, Ivory Coast, Kenya, Morocco, South Africa, Togo, Tunisia and Uganda and has plans to expand. Abu Dhabi National Energy Co. has projects in Morocco, Senegal and South Africa and is participating in a project to invest US$10 billion in renewable energy in sub-Saharan Africa. DP World, the gargantuan government-backed ports and logistics operator, has invested billions of dollars in ports and economic free zones from Algeria to Zambia, including in the Berbera port city in the breakaway republic of Somaliland, where the Emirates also has a military base. Last summer, it announced that it would spend another US$3 billion on African ports over the next three to five years. Last year, the Emirati International Holding Co. invested more than US$1 billion for a 51 per cent share in the Mopani Copper Mines in Zambia. Spending in Egypt has also soared. Last year, the Emirates agreed to invest US$35 billion to develop a new city and tourism destination on Egypt's Mediterranean coast. Emirati investment in Africa has ramped up as China's has tapered off. Once the biggest foreign investor on the continent through its Belt and Road Initiative, China still has a large presence, but Beijing has pulled back in recent years after a series of debt crises in Africa and economic problems at home. In 2022 and 2023, the Emirates announced a total of US$97 billion in investments in Africa – three times China's total, according to fDi Markets, a database of foreign investments. US investment in 2023 was about US$10 billion. Experts said that even though not all of these pledges would pan out, they showed an overall commitment to doing business on the continent. The Emirates is also looking to build trade and has signed bilateral economic partnership pacts with three African nations, including Kenya, since the year's start. 'The UAE's total foreign assistance in Africa, which exceeded US$1 billion in 2023-24, also highlights our ongoing commitment to addressing urgent needs,' a government spokesperson on trade and aid said. Meanwhile, Mr Trump has fast-tracked the United States' exit from Africa, ending billions of dollars in funding, dismantling the US Agency for International Development and ending all contributions to the African Development Bank. The State Department's reorganisation plan also calls for the elimination of most operations in the region. Britain has also tightened its flow of money into the continent in recent years as it has increased aid to Ukraine and increased its own military spending. The Trump administration's actions are extreme, said Dr Ricardo Soares de Oliveira, a co-director of a program on African governance at Oxford University, but they reflect a larger global trend away from development aid and liberal values. The world is transitioning to an era in which the focus on democracy and free markets is becoming less significant, Dr Soares de Oliveira said. 'A more business-focused approach is going to be the shared norm,' he added. That is not to say the Emirates does not have substantial strategic and political interests in Africa. What's different is that it has delegated statecraft to private interests and businesses, almost all of which have ties in some way to the government or ruling families, said Dr Andreas Krieg, a fellow at the Institute of Middle Eastern Studies at King's College London. These enterprises are expected to generate both economic and strategic returns. 'The UAE has revolutionized statecraft for a small country,' Dr Krieg said. It has fewer than 1 million citizens, is smaller than the state of Indiana and has a relatively tiny military. Yet, he said, 'it's very much playing the game of a middle power.' Some of the Emirates' political choices have stirred concerns. Sudan's government has accused the Emirates of fuelling genocide with its backing of the Rapid Support Forces, the paramilitary group engaged in a civil war that has killed 150,000 and displaced 14 million people. Recently, Sudan's military cut diplomatic ties with the Emirates, which has said it has provided only humanitarian assistance. The Emirates has also been accused of funneling money to the Russian mercenary group Wagner in both Sudan and Libya. 'There is no such thing as clean or dirty money in the UAE,' Dr Krieg said . NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
New York Times
17-05-2025
- Business
- New York Times
U.A.E. Is Pouring Money Into Africa, Seeking Resources and Power
Look at the chief economic and strategic spots across Africa — ports for key trade corridors, mines that produce critical minerals, large renewable energy projects — and you will find the United Arab Emirates. As the United States and, to a lesser extent, China reduce their investment, aid and presence on the African continent, the Emirates is using its enormous wealth and influence to fill the void. Persian Gulf investments in Africa, primarily by the Emirates, have exploded in recent years. Since 2019, $110 billion worth of deals — mostly by firms tightly aligned with the ruling powers — have been announced, dwarfing amounts pledged by any other country. 'The U.A.E. is turning into a dominant foreign player' in much of Africa, said Anna Jacobs, a nonresident fellow at the Arab Gulf States Institute in Washington. Its efforts to become a world leader, particularly in finance and technology, are likely to be bolstered under President Trump, Ms. Jacobs said. The president, seeking to draw Emirati money to the United States, paved the way this week for the sale of American advanced artificial intelligence chips to the Emirates. The Emirates' wide-ranging investments and efforts to become a world leader in A.I. are part of an ambitious plan to increase the country's influence, particularly over global supply chains. Like other oil-producing nations in the Persian Gulf, the Emirates is looking to diversify its economy away from fossil fuels, and it sees Africa as an essential part of the plan. The continent has vast mineral resources, a growing population, agricultural potential and a strategically important location bordering the Red and Mediterranean Seas as well as the Indian and Atlantic Oceans. Powerhouse Emirati corporations based in Dubai and Abu Dhabi with political connections are in dozens of countries across Africa. AMEA Power is already building or operating clean energy plants in Burkina Faso, Djibouti, Egypt, Ethiopia, Ivory Coast, Kenya, Morocco, South Africa, Togo, Tunisia and Uganda and has plans to expand. Abu Dhabi National Energy Company has projects in Morocco, Senegal and South Africa and is participating in a project to invest $10 billion in renewable energy in sub-Saharan Africa. DP World, the gargantuan government-backed ports and logistics operator, has invested billions of dollars in ports and economic free zones from Algeria to Zambia, including in the Berbera port city in the breakaway republic of Somaliland, where the Emirates also has a military base. Last summer it announced that it would spend another $3 billion on African ports over the next three to five years. Last year, the Emirati International Holding Company invested more than $1 billion for a 51 percent share in the Mopani Copper Mines in Zambia. Spending in Egypt has also soared. Last year, the Emirates agreed to invest $35 billion to develop a new city and tourism destination on Egypt's Mediterranean coast. Emirati investment in Africa has ramped up as China's has tapered off. Once the biggest foreign investor on the continent through its Belt and Road Initiative, China still has a large presence, but Beijing has pulled back in recent years after a series of debt crises in Africa and economic problems at home. In 2022 and 2023, the Emirates announced a total of $97 billion in investments in Africa — three times China's total, according to fDi Markets, a database of foreign investments. U.S. investment in 2023 was about $10 billion. Experts said that even though not all of these pledges would pan out, they showed an overall commitment to doing business on the continent. The Emirates is also looking to build trade and has signed bilateral economic partnership pacts with three African nations, including Kenya, since the year's start. 'The U.A.E.'s total foreign assistance in Africa, which exceeded $1 billion in 2023-24, also highlights our ongoing commitment to addressing urgent needs,' a government spokesperson on trade and aid said. Meanwhile, Mr. Trump has fast-tracked America's exit from Africa, ending billions of dollars in funding, dismantling the U.S. Agency for International Development and ending all contributions to the African Development Bank. The State Department's reorganization plan also calls for the elimination of most operations in the region. Britain has also tightened its flow of money into the continent in recent years as it has increased aid to Ukraine and increased its own military spending. The Trump administration's actions are extreme, said Ricardo Soares de Oliveira, a co-director of a program on African governance at Oxford University, but they reflect a larger global trend away from development aid and liberal values. The world is transitioning to an era in which the focus on democracy and free markets is becoming less significant, Mr. Soares de Oliveira said. 'A more business-focused approach is going to be the shared norm,' he added. That isn't to say the Emirates does not have substantial strategic and political interests in Africa. What's different is that it has delegated statecraft to private interests and businesses, almost all of which have ties in some way to the government or ruling families, said Andreas Krieg, a fellow at the Institute of Middle Eastern Studies at King's College London. These enterprises are expected to generate both economic and strategic returns. 'The U.A.E. has revolutionized statecraft for a small country,' Mr. Krieg said. It has fewer than one million citizens, is smaller than the state of Indiana and has a relatively tiny military. Yet, he said, 'it's very much playing the game of a middle power.' Some of the Emirates' political choices have stirred concerns. Sudan's government has accused the Emirates of fueling genocide with its backing of the Rapid Support Forces, the paramilitary group engaged in a civil war that has killed 150,000 and displaced 14 million people. Recently, Sudan's military cut diplomatic ties with the Emirates, which has said it has provided only humanitarian assistance. The Emirates has also been accused of funneling money to the Russian mercenary group Wagner in both Sudan and Libya. 'There is no such thing as clean or dirty money in the U.A.E.,' Mr. Krieg said. Ken Opalo, an associate lecturer at Georgetown University's School of Foreign Service, said the Emirates aimed to be the world's gateway to Africa for investment and trade, whether legal or smuggled. The gold trade alone that passes mostly through Dubai is worth $30 billion, he said. 'The U.A.E. has developed a robust regulatory framework that ensures that the trade in gold is conducted with the maximum security, integrity and transparency,' an Emirati official said. As Mr. Trump's visit to the gulf region this week illustrates, Washington considers the Emirates a reliable ally in the region and in Africa. The two countries have maintained close security ties. But Washington may underestimate just how valuable the commercial partnership between the Emirates and China is. Ambitious investments in green energy in Africa rely on Chinese technology, minerals and goods. 'The U.A.E. ultimately militarily relies on the U.S., but it also wants to position itself as the Switzerland of the gulf where everyone is welcome,' Mr. Opalo said. 'They want to be a renewables hub, and it's hard to play that game without engaging China.'
Yahoo
11-04-2025
- Business
- Yahoo
Bridges in the Gulf: wealthy states mediate crisis after crisis
When US and Iranian negotiators meet in Oman on Saturday they will be just the latest to turn to crisis mediation in the Gulf Arab states, whose wealthy rulers are increasingly seeking out the role. Oman is a long-established venue for Iranian talks, while promoting peace is a pillar of Qatar's foreign policy and even enshrined in its constitution. More recently Saudi Arabia has caught on, hosting Ukraine ceasefire talks including the latest round in a lavish hotel in Riyadh last month. The United Arab Emirates has also got in on the act, facilitating Russia-Ukraine prisoner exchanges and hand-delivering a letter from US President Donald Trump to Tehran that paved the way for Saturday's talks. The Gulf monarchies are convenient facilitators as they often refuse to take sides in conflicts and are careful to maintain relations with a wide array of countries. They benefit from the prestige and diplomatic leverage of hosting talks, while also helping protect themselves by easing regional volatility. In the case of Iran, which sits on the other side of the Gulf, there is a clear peace dividend for the Arab states which house a number of US military bases. "In terms of middle powers, they are just in a really unique position in having such a close relationship to the US and being very trusted by the US but also having relationships with a variety of US and Western rivals," said Anna Jacobs of the Arab Gulf States Institute in Washington. - 'New heavyweight actor' - Oman has always stayed on good terms with its neighbour Iran, facilitating for years discreet contacts with the US, which has not had diplomatic relations with Tehran since 1979. The sultanate was the first Gulf country to "fully engage in world diplomacy", said Jean-Paul Ghoneim of the French Institute for International and Strategic Affairs. "Then came the Emiratis, the Qataris, and now there is a new heavyweight actor: Saudi Arabia," he said. Qatar has been a key mediator in more than a year of talks to end the Gaza war between Israel and the Palestinian militant group Hamas, which has a political office in Doha. Qatar has also been an intermediary for Iran and the Taliban government in Afghanistan, among others. In organising such talks, often cloistered in luxury hotels, Gulf states are first and foremost seeking to protect their own interests. Tensions in the Middle East "would put the region squarely in the crosshairs of conflict and jeopardise their reputations as safe places to live, work, and do business," said Kristian Ulrichsen, a Middle East fellow at Rice University in Houston, Texas. In Saudi Arabia's case, regional instability would "put at risk the giga-projects that lie at the heart of Vision 2030", the oil-dependent kingdom's giant economic diversification plan, he added. Beyond the Middle East, Qatar recently hosted meetings between the Democratic Republic of Congo and the Rwanda-backed M23 rebels, and brought together DRC President Felix Tshisekedi and Rwandan President Paul Kagame in Doha. In 2022, Qatar brokered an agreement between Chad's military government and dozens of opposition groups to hold peace talks, after five months of mediation efforts. "Qatar's record in mediation has turned Doha into a hub with institutionalised expertise that extra-regional actors are now actively turning to," said Ulrichsen. - 'They want to be players' - While Qatar and Oman have long-standing mediation traditions, especially in regional affairs, the role of Gulf states as intermediaries in the Ukraine-Russia war took the world by surprise. Saudi Arabia's hosting of indirect talks between Moscow and Kyiv under US auspices, as well as the first Russian-American talks since 2022, highlights how conflict mediation has shifted away from Europe, Ulrichsen said. "The sight of a Gulf state hosting dialogue to end a major European war is testament to the region's geopolitical weight in a far more multipolar and less Western-centric world," he said. Yet Riyadh's role in those talks was limited, said James Dorsey, an honorary fellow at the National University of Singapore's Middle East Institute. The Americans and Russians simply "needed a neutral ground to meet", he said. "Both the Americans and the Russians wanted to give that to the Saudis on a silver platter," he said, offering the kingdom "prestige" on the world stage. "Certainly for the smaller states, but also for Saudi Arabia, it's soft power," he said. "They want to be players. And they don't want to be just regional players," he added. saa/aya/th/kir/rjm
