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Welcome Qatar
22-05-2025
- Business
- Welcome Qatar
Did Trump really strike Gulf deals worth $2tn?
Did Trump really strike Gulf deals worth $2tn? 1 day ago Share Save Sameer Hashmi Business reporter Reporting fromJeddah Getty Images Donald Trump waves with one hand as Saudi Crown Prince Mohammed bin Salman stands behind himGetty Images Trump started the four-day visit in Saudi Arabia where deals worth $600bn were announced Flying home from his Gulf trip last week, President Donald Trump told reporters 'that was a great four days, historic four days'. Visiting Saudi Arabia, Qatar and the United Arab Emirates (UAE), he added in this trademark swagger that 'the jobs and money coming into our countries, there has never been anything like it'. Trump claimed that he was able to secure deals totalling more than $2tn (£1.5tn) for the US, but do the numbers add up? The trip itself was an extravaganza, with the three Gulf states pulling out all the stops. Escorts of fighter jets, extravagant welcoming ceremonies, a thundering 21-gun salute, a fleet of Tesla Cybertrucks, royal camels, Arabian horses, and sword dancers were all part of the pageantry. The UAE also awarded Mr Trump the country's highest civilian honour, the Order of Zayed. The visit's optics were striking; the region's richest petrostates flaunted their opulence, revealing just how much of that fortune they were ready to deploy to strengthen ties with the US while advancing their own economic goals. Ros Atkins on… Trump's deals in the Gulf Trump heads to Saudi Arabia eyeing more investment in US What did Trump's speech in Saudi Arabia reveal? Before embarking on the trip, President Trump, who touts himself as a 'dealmaker in chief' was clear that the main objective of the trip was to land investments worth billions of dollars. On the face of it, he succeeded. In Saudi Arabia, Crown Prince Mohammed bin Salman reiterated a pledge to invest $600bn in US-Saudi partnerships. There were a plethora of deals announced as part of this, encompassing arms, artificial intelligence (AI), healthcare, infrastructure projects and science collaborations, and various security ties and initiatives. The $142bn defence deal grabbed a lot of the attention as it was described by the White House as the largest arms deal ever. However, there remains some doubt as to whether those investment figures are realistic. During his first term in office from 2017 to 2021, Trump had announced that Saudi Arabia had agreed to $450bn in deals with the US. But actual trade and investment flows amounted to less than $300bn between 2017 to 2020, according to data compiled by the Arab Gulf States Institute. The report was authored by Tim Callen, the former International Monetary Fund (IMF) mission chief to Saudi Arabia, and now a visiting fellow at the Arab Gulf States Institute. 'The proof with all of these [new] deals will be in the pudding,' says Mr Callen. The BBC contacted the White House for comment. Getty Images Trump walking through a guard of honour with Saudi Crown Prince Mohammed bin Salman upon landing in RiyadhGetty Images President Trump was given a welcome fit for royalty In Qatar, Trump announced an 'economic exchange' worth at least $1.2tn. However, in the fact sheet released by the White House deals worth only $243.5bn between the two countries were mentioned. One of the Qatari agreements that was confirmed was Qatar Airways purchasing up to 210 passenger jets for $96bn from the beleaguered American aircraft manufacturer Boeing. The White House said the deal would support 154,000 jobs in the US each year of their production, totalling one million jobs over the deal's lifecycle. Meanwhile, the UAE inked an agreement to construct the world's largest AI campus outside the US, reportedly granting it access to 500,000 cutting edge microchips from US giant Nvidia, starting next year. This project sits within the UAE's broader pledge to invest $1.4tn in the US over the next decade. As well as the challenge of delivering what is promised, another potential obstacle to these figures being realised are oil prices. Oil prices tumbled to a four-year low in April amid growing concerns that Trump's tariffs could dampen global economic growth. The decline was further fuelled by the group of oil producing nations, Opec+, announcing plans to increase output. For Saudi Arabia, the fall in global oil prices since the start of the year has further strained its finances, increasing pressure to either raise debt or cut spending to sustain its development goals. Last month, the IMF cut the forecast for the world's largest oil exporter's GDP growth in 2025 to 3% from its previous estimate of 3.3%. 'It's going to be very hard for Saudi to come up with that sort of money [the $600bn announced] in the current oil price environment,' Mr Callen adds. Other analysts note that a lot of the agreements signed during the trip were non-binding memorandums of understanding, which are less formal than contracts, and do not always translate into actual transactions. And some of the deals included in the agreement were announced earlier. Saudi oil firm Aramco, for instance, announced 34 agreements with US companies valued at up to $90bn. However, most were non-binding memorandums of understanding without specified monetary commitments. And its agreement to purchase 1.2 million tonnes of liquified natural gas annually for 20 years from US firm NextDecade was also included in the list of new deals, despite it first being announced months ago. Getty Images A Qatar Airways Boeing aircraftGetty Images One of the deals announced on the trip was Qatar Airways buying 210 new aircraft from Boeing Yet the massive investments mark a continuation of the shift in the US-Gulf relationship away from oil-for-security to stronger economic partnerships rooted in bilateral investments. Bader Al Saif, an assistant professor at Kuwait University and an associate fellow at think tank Chatham House, says that the deals indicate that US and the Gulf states are 'planning the future together and that was a significant change for the relationship'. He adds that the AI deals with the UAE and Saudi Arabia were central to this as 'they clearly demonstrate that they are trying to see how to build the new global order and the new way of doing things together'. This emphasis on AI underscores the growing strategic importance of the technology to US diplomacy. Trump was accompanied on the trip by Sam Altman, the boss of OpenAI, Nvidia's Jensen Huang, and Elon Musk, who owns Grok AI. And on the eve of the visit, the White House scrapped tough Biden-era restrictions on exports of the advanced US semiconductors required to best run AI systems. The rules had divided the world into tiers, with some countries enjoying broad access to its high-end chips, and others being denied them altogether. About 120 countries, including the Gulf nations, were grouped in the middle, facing strict caps on the number of semiconductors they could import. This had frustrated countries such as Saudi Arabia, who have ambitions to become high-tech economies as they transition away from oil. Both Saudi and the UAE are racing to build large-scale AI data centres, while Abu Dhabi, the UAE's capital, aims to become a global AI hub. The UAE has made visible efforts to reassure Washington – deepening partnerships with US tech firms, curbing ties with Chinese companies, and aligning more closely with American national security interests. Mr Al-Saif says that the UAE is 'betting on the Americans when it comes to AI'. 'We have seen that the technological turn in the 90s came from the US anyway.' Getty Images Trump walking with the Emir of Qatar Tamim bin Hamad al Thani Getty Images After Saudi Arabia Trump travelled to Qatar where $1.2tn of deals were announced Both camps are hailing the visit as a triumph. For the Gulf, and especially Saudi Arabia, it resets a partnership that frayed under Biden, and underscores their ambition to act as heavyweight players on the world stage. For Trump, touting 'trillions' in new investment offers a timely boost – his tariff hikes have dented global trade and pushed US output into its first quarterly dip in three years. These Gulf deals will be sold as proof that his economic playbook is working. At the end of the trip, Mr Trump worried that whoever succeeds him in the White House would claim credit for the deals once they come to completion. 'I'll be sitting home, who the hell knows where I'll be, and I'll say, 'I did that,'' he said. 'Somebody's going to be taking the credit for this. You remember, press,' he said, pointing to himself, 'this guy did it.'
Yahoo
20-05-2025
- Business
- Yahoo
Did Trump really strike Gulf deals worth $2tn?
Flying home from his Gulf trip last week, President Donald Trump told reporters "that was a great four days, historic four days". Visiting Saudi Arabia, Qatar and the United Arab Emirates (UAE), he added in this trademark swagger that "the jobs and money coming into our countries, there has never been anything like it". Trump claimed that he was able to secure deals totalling more than $2tn (£1.5tn) for the US, but do the numbers add up? The trip itself was an extravaganza, with the three Gulf states pulling out all the stops. Escorts of fighter jets, extravagant welcoming ceremonies, a thundering 21-gun salute, a fleet of Tesla Cybertrucks, royal camels, Arabian horses, and sword dancers were all part of the pageantry. The UAE also awarded Mr Trump the country's highest civilian honour, the Order of Zayed. The visit's optics were striking; the region's richest petrostates flaunted their opulence, revealing just how much of that fortune they were ready to deploy to strengthen ties with the US while advancing their own economic goals. Ros Atkins on... Trump's deals in the Gulf Trump heads to Saudi Arabia eyeing more investment in US What did Trump's speech in Saudi Arabia reveal? Before embarking on the trip, President Trump, who touts himself as a "dealmaker in chief" was clear that the main objective of the trip was to land investments worth billions of dollars. On the face of it, he succeeded. In Saudi Arabia, Crown Prince Mohammed bin Salman reiterated a pledge to invest $600bn in US-Saudi partnerships. There were a plethora of deals announced as part of this, encompassing arms, artificial intelligence (AI), healthcare, infrastructure projects and science collaborations, and various security ties and initiatives. The $142bn defence deal grabbed a lot of the attention as it was described by the White House as the largest arms deal ever. However, there remains some doubt as to whether those investment figures are realistic. During his first term in office from 2017 to 2021, Trump had announced that Saudi Arabia had agreed to $450bn in deals with the US. But actual trade and investment flows amounted to less than $300bn between 2017 to 2020, according to data compiled by the Arab Gulf States Institute. The report was authored by Tim Callen, the former International Monetary Fund (IMF) mission chief to Saudi Arabia, and now a visiting fellow at the Arab Gulf States Institute. "The proof with all of these [new] deals will be in the pudding," says Mr Callen. The BBC contacted the White House for comment. In Qatar, Trump announced an "economic exchange" worth at least $1.2tn. However, in the fact sheet released by the White House deals worth only $243.5bn between the two countries were mentioned. One of the Qatari agreements that was confirmed was Qatar Airways purchasing up to 210 passenger jets for $96bn from the beleaguered American aircraft manufacturer. The White House said the deal would support 154,000 jobs in the US each year of their production, totalling one million jobs over the deal's lifecycle. Meanwhile, the UAE inked an agreement to construct the world's largest AI campus outside the US, reportedly granting it access to 500,000 cutting edge microchips from US giant Nvidia, starting next year. This project sits within the UAE's broader pledge to invest $1.4tn in the US over the next decade. As well as the challenge of delivering what is promised, another potential obstacle to these figures being realised are oil prices. Oil prices tumbled to a four-year low in April amid growing concerns that Trump's tariffs could dampen global economic growth. The decline was further fuelled by the group of oil producing nations, Opec+, announcing plans to increase output. For Saudi Arabia, the fall in global oil prices since the start of the year has further strained its finances, increasing pressure to either raise debt or cut spending to sustain its development goals. Last month, the IMF cut the forecast for the world's largest oil exporter's GDP growth in 2025 to 3% from its previous estimate of 3.3%. "It's going to be very hard for Saudi to come up with that sort of money [the $600bn announced] in the current oil price environment," Mr Callen adds. Other analysts note that a lot of the agreements signed during the trip were non-binding memorandums of understanding, which are less formal than contracts, and do not always translate into actual transactions. And some of the deals included in the agreement were announced earlier. Saudi oil firm Aramco, for instance, announced 34 agreements with US companies valued at up to $90bn. However, most were non-binding memorandums of understanding without specified monetary commitments. And its agreement to purchase 1.2 million tonnes of liquified natural gas annually for 20 years from US firm NextDecade was also included in the list of new deals, despite it first being announced months ago. Yet the massive investments mark a continuation of the shift in the US-Gulf relationship away from oil-for-security to stronger economic partnerships rooted in bilateral investments. Bader Al Saif, an assistant professor at Kuwait University and an associate fellow at think tank Chatham House, says that the deals indicate that US and the Gulf states are "planning the future together and that was a significant change for the relationship". He adds that the AI deals with the UAE and Saudi Arabia were central to this as "they clearly demonstrate that they are trying to see how to build the new global order and the new way of doing things together". This emphasis on AI underscores the growing strategic importance of the technology to US diplomacy. Trump was accompanied on the trip by Sam Altman, the boss of OpenAI, Nvidia's Jensen Huang, and Elon Musk, who owns Grok AI. And on the eve of the visit, the White House scrapped tough Biden-era restrictions on exports of the advanced US semiconductors required to best run AI systems. The rules had divided the world into tiers, with some countries enjoying broad access to its high-end chips, and others being denied them altogether. About 120 countries, including the Gulf nations, were grouped in the middle, facing strict caps on the number of semiconductors they could import. This had frustrated countries such as Saudi Arabia, who have ambitions to become high-tech economies as they transition away from oil. Both Saudi and the UAE are racing to build large-scale AI data centres, while Abu Dhabi, the UAE's capital, aims to become a global AI hub. The UAE has made visible efforts to reassure Washington – deepening partnerships with US tech firms, curbing ties with Chinese companies, and aligning more closely with American national security interests. Mr Al-Saif says that the UAE is "betting on the Americans when it comes to AI". "We have seen that the technological turn in the 90s came from the US anyway." Both camps are hailing the visit as a triumph. For the Gulf, and especially Saudi Arabia, it resets a partnership that frayed under Biden, and underscores their ambition to act as heavyweight players on the world stage. For Trump, touting "trillions" in new investment offers a timely boost - his tariff hikes have dented global trade and pushed US output into its first quarterly dip in three years. These Gulf deals will be sold as proof that his economic playbook is working. At the end of the trip, Mr Trump worried that whoever succeeds him in the White House would claim credit for the deals once they come to completion. "I'll be sitting home, who the hell knows where I'll be, and I'll say, 'I did that,'" he said. "Somebody's going to be taking the credit for this. You remember, press," he said, pointing to himself, "this guy did it." The world's most dangerous country for trade unionists Letting off steam: How Dominica's volcanoes will boost its green energy Is the US finally on track to build a high-speed rail network? Deported gang members get second chance at call centre
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
Time of India
17-05-2025
- Business
- Time of India
UAE pours money into Africa, seeking resources, power
President Donald Trump speaks with Crown Prince Mohammed bin Salman of Saudi Arabia (NYT photo) 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 continent, the Emirates is using its enormous wealth 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 Trump, 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. 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025년 가장 멋진 RPG 게임을 지금 정복하세요 레이드 섀도우 레전드 Undo 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 has projects in Morocco, Senegal and South Africa. DP World , the gargantuan govt-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 year, the Emirati International Holding 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. 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 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. US investment in 2023 was about $10 billion. Meanwhile, Trump has fast-tracked the US' exit from Africa, ending billions of dollars in funding, dismantling the USAID and ending all contributions to the African Development Bank.
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.
