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DCO unveils Oman startup guide
DCO unveils Oman startup guide

Zawya

time2 days ago

  • Business
  • Zawya

DCO unveils Oman startup guide

MUSCAT: The Digital Cooperation Organisation (DCO) — the world's foremost international governmental organisation focused on promoting a sustainable digital economy — has recently released the Startup Country Guide 2024 manual to support entrepreneurs navigating Oman's startup ecosystem. The guide provides in-depth insights into Oman's legal structures, tax framework, government incentives and sectoral opportunities. The report highlighted Oman's efforts in driving economic diversification and establishing a digital economy. 'Oman's forward-looking approach towards development, encapsulated in Oman Vision 2040, seeks to transform the nation's economy from a dependency on oil and gas to a diversified, knowledge-based model. With initiatives like the Oman Future Fund and the National Initiative for Artificial Intelligence (AI), accompanying a substantial budget allocation, the country is proactively advancing economic diversification. The rising Omani startups programme strives to foster innovation, empowers startup establishment, facilitates business connections and pinpoints investment prospects', it noted In addition to highlighting promising sectors, the guide outlines the significance of support programmes rolled out by the government. 'Comprising comprehensive support at all entrepreneurial stages, the programme leverages key partnerships, such as Omantel Labs and ITHCA Group, to offer invaluable resources for startups, including fintech, 5G, Internet of things (IoT) and more. Additionally, the Oman Technology Fund's (OTF) Techween pre-seed fund programme provides funding, collaborative workspaces and mentorship, reinforcing Oman's position in the regional startup landscape. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (

Kuwait, Qatar, UAE maintain non-oil growth momentum; Egypt shows recovery signs while Lebanon struggles
Kuwait, Qatar, UAE maintain non-oil growth momentum; Egypt shows recovery signs while Lebanon struggles

Arab News

time4 days ago

  • Business
  • Arab News

Kuwait, Qatar, UAE maintain non-oil growth momentum; Egypt shows recovery signs while Lebanon struggles

RIYADH: Non-oil business activity in the Middle East showed mixed trends in July, with Kuwait, the UAE, and Qatar maintaining strong growth while Egypt demonstrated signs of recovery and Lebanon remained under pressure. According to the latest Purchasing Managers' Index report released by S&P Global, Kuwait's PMI ticked up to 53.5 in July from 53.1 in June, signalling a solid monthly improvement in the health of the non-oil private sector. This robust performance of non-energy business conditions in Kuwait aligns with the wider trend observed in the Gulf Cooperation Council region, where countries are pursuing economic diversification efforts to reduce dependence on crude revenues. 'Kuwait's non-oil private sector began the second half of 2025 in much the same way as it ended the first, with output and new orders up markedly again in July,' said Andrew Harker, economics director at S&P Global Market Intelligence. Survey panelists linked higher new orders in July to advertising efforts and price discounting, which helped to further raise the output. According to the report, employment levels in Kuwait's non-oil sector remained broadly unchanged in July, following a record increase in June. S&P Global added that inflationary pressures softened in the seventh month of the year, with purchase prices and staff costs increasing at the slowest rates in six and four months, respectively. 'Firms will have been cheered by a softening of inflationary pressures during the month, but the reluctance to hire extra staff did mean that backlogs of work accumulated again,' said Harker. The survey data also revealed that Kuwaiti companies remained strongly optimistic about future growth, on the hopes that output will rise further in the remaining months of the year. 'The prospects for further expansions in new business in the months ahead appear bright, and we'll hopefully see this reflected in renewed hiring activity soon,' added Harker. UAE's PMI declines amid geopolitical tensions UAE's PMI slipped to 52.9 in July from 53.5 in June but remained well above the 50 mark that signals expansion of the non-energy business conditions. S&P Global attributed this decline to a slowdown in new business growth across the non-oil economy, as ongoing regional tensions made some clients hesitant to commit to new spending. Panelists who took part in the survey also pointed to weaker tourism activity and headwinds from global trade disruptions to lower activities in July. Despite this decline, output expanded sharply in June, as non-oil firms in the Emirates sought to prevent further increases in backlogs of work. 'Business conditions improved in July, but the rate of growth was the weakest since the middle of 2021. As has been the case recently, output was supported by positive demand trends,' said David Owen, senior economist at S&P Global Market Intelligence. He added: 'New order volumes helped firms to expand, but this trend is declining, with the latest data indicating the softest rise in incoming new work in almost four years.' The softer increase in new orders contributed to a slight easing in the rate of activity expansion in July, which was further dampened by intensified competitive pressures The report also revealed that some firms reported that output increased in response to new sales opportunities, rising client incomes, advancements in technological investment, and the clearance of pending work. The July survey data indicated that job growth softened in over the month, marking the weakest uplift in four months. 'Should regional tensions ease, we may see a recovery in sales growth in the coming months. This would also be supported by the subdued price environment, with input costs rising only modestly despite the pace of increase reaching a three-month high,' said Owen. He added: 'Nevertheless, the ongoing trends of rising competition, limited inventory, constrained hiring growth and relatively low confidence among surveyed firms suggest that downside risks remain elevated.' In the same report, S&P Global revealed that Dubai's PMI rose to 53.5, up from a 45-month low of 51.8 in June, signalling a solid upturn in operating conditions across the Emirate's non-oil private sector economy. Dubai non-oil firms also expanded their output at the sharpest rate in five months in July, while continuing efforts to increase employment and inventories. Non-energy business conditions improve in Qatar In a separate report, S&P Global revealed that business conditions in Qatar's non-energy sector continued to improve in July, with the country's PMI remaining above the 50-expansion zone for the 19th consecutive month. The country's PMI fell to 51.4 in July from 52 in June. The report revealed that non-energy private sector employment in Qatar increased at the second-strongest rate in the eight-year survey history, driving a further sharp increase in wages. 'The PMI remained above the neutral threshold at 51.4 in July, signalling sustained overall growth in the non-energy private sector. But the headline figure continues to mask underlying weakness in demand and output, being heavily supported by another round of strong employment growth,' said Trevor Balchin, economics director at S&P Global Market Intelligence. Companies in the non-energy private sector remained optimistic regarding the 12-month outlook for activity in July, due to expected growth in investment, tourism, and industrial development, as well as a recovery in construction, population expansion, and government initiatives. Egypt's PMI nearing growth trajectory In another report, S&P Global revealed that Egypt's PMI increased to 49.5 in July, up from 48.8 in June, but still remaining below the 50 no-change threshold for the fifth consecutive month. According to S&P Global, Egyptian non-oil business conditions deteriorated for the fifth consecutive month in July, although the decline was less severe than in June, with firms reporting softer contractions in both activity and new orders. The report added that businesses increased headcounts for the first time since last October, while cuts in purchases softened. 'Although the Egypt PMI stayed below 50 in July, indicating a worsening of non-oil business conditions, the latest survey data provided some cause for optimism. Several firms reported the securing of new work, which helped to soften the rate of decline in sales,' said Owen. He added: 'Businesses also had the confidence to hire new staff, leading to an increase in employment for the first time in nine months, if only a fractional one.' Input prices also rose at a slightly quicker pace in July, with survey panelists attributing this trend to higher costs for items such as cement, fuel and packaging. Increased staff wages also contributed to cost pressures, although the rate of growth was mild. Regarding future activity, companies in Egypt continued to express concerns about demand strength and broader economic uncertainty, with optimism improving slightly from June's record low. Lebanon's PMI drops According to the latest report, Lebanon's private sector economy remained under pressure at the start of the second half of the year, with the PMI in July dropping to 48.9 from 49.2 in June. The report revealed that business activity volumes across Lebanon's private sector fell further in July, extending the current sequence of contraction to five months, driven by subdued demand conditions, particularly from abroad. 'The July 2025 BLOM Lebanon PMI dropped to 48.9. This result was not unexpected as the economy lacked any meaningful demand stimulus: the government does not have any money to spend and the private sector is not able and willing to spend,' said Ali Bolbol, chief economist and head of research at BLOMInvest BANK. Private sector companies in Lebanon lowered their purchasing volumes as a part of their efforts to reduce costs. Looking ahead, surveyed companies remained pessimistic toward the year-ahead outlook for business activity, with these firms expressing negative consequences of a potential escalation of conflict and tensions across the Middle East region.

Preparations launched for the second edition of the Suhar Investment Forum
Preparations launched for the second edition of the Suhar Investment Forum

Zawya

time4 days ago

  • Business
  • Zawya

Preparations launched for the second edition of the Suhar Investment Forum

The organising committee of the Suhar Investment Forum has officially announced the start of preparations for the forthcoming edition of the forum, scheduled to take place on February 4–5, 2026. The theme of the Forum is 'Suhar: Industrial Investment Destination.' This step reflects the growing ambition to reinforce Suhar's position as an advanced industrial hub and a leading investment destination in the region. The announcement was made during the first meeting of the forum's organising committee, chaired by Eng. Said bin Ali Al-Abri, Chairman of the Oman Chamber of Commerce and Industry – North Al Batinah Branch. The meeting included representatives from various public and private sector entities involved in investment and industrial development across the Sultanate. During the meeting, the committee discussed key focus areas for the upcoming edition, including building on the notable success of the previous forum, which saw wide regional and international participation. The 2024 edition of Suhar Investment Forum led to the signing of multiple Memoranda of Understanding and served as an effective platform for dialogue between investors and decision-makers while presenting promising investment opportunities in North Al Batinah Governorate. In this context, Eng. Said Al-Abri emphasized that the upcoming forum will highlight the industrial sector as a core pillar for achieving economic diversification. He noted that the forum would serve as a strategic platform for displaying industrial investment opportunities, strengthening public-private partnerships, and attracting high-value investments in sectors with strong value-added potential. He further highlighted Oman's competitive advantages that enhance its investment appeal—chief among them being its strategic geographic location linking Asia, Africa, and Europe; advanced infrastructure including integrated ports, airports, and logistics networks; as well as the availability of specialized industrial zones, and well-designed legislative and economic incentives. He added, "Amid global challenges and rising tax burdens in many markets, the Sultanate stands out as a stable alternative investment destination, particularly with its Free Trade Agreement with the United States, giving Oman-made products a significant competitive edge in both U.S. and global markets." The upcoming edition of the forum will target several priority industrial sectors, including – Food, Medical, downstream industries, Aluminum, Recycling industries, Steel and Plastic. This focus aligns with Oman's goals for industrial diversification and strengthening its investment ecosystem. Eng. Said Al-Abri confirmed that the forum would present participants with a curated selection of ready-to-execute investment opportunities, developed in coordination with relevant authorities. These projects are viable for immediate implementation, enabling investors to make swift and informed decisions in a clear and facilitative environment. The committee also addressed the accompanying activities of the forum, which will include high-level panel discussions featuring expert speakers from Oman and abroad, a dedicated exhibition, and a B2B meeting platform to facilitate direct engagement between investors and representatives of government and economic institutions. The meeting also discussed the forum's media strategy, which will feature integrated promotional campaigns across traditional and digital media, in addition to the launch of a centralized digital platform for participant registration, interactive engagements, and streamlined access to investment information. Eng. Al-Abri pointed out that this year's forum theme – 'Suhar: Industrial Investment Destination' – reflects Oman's strategic direction toward building a competitive industrial ecosystem rooted in innovation, sustainability, and integration with global and regional supply chains. He stressed that the forum will be a practical working platform that transforms vision into tangible investments and impactful projects. The first edition of the Suhar Investment Forum established itself as a promising economic platform and a strong foundation for a more ambitious and expanded version. The inaugural edition attracted over 800 participants and exhibition visitors highlighted 104 investment opportunities valued at more than OMR 1 billion, and led to the signing of 14-cooperation agreements worth over OMR 115 million. The forum featured distinguished participation from more than 40 speakers representing leading institutions and international consultancy firms, alongside delegations from over 24 countries, and support from more than 25 public and private entities that contributed to the forum's and exhibition's success.

Oman joins World Free Zones Organization to shore more foreign investment
Oman joins World Free Zones Organization to shore more foreign investment

Arab News

time31-07-2025

  • Business
  • Arab News

Oman joins World Free Zones Organization to shore more foreign investment

RIYADH: Oman's free zones are set to attract greater foreign investment after signing up to a global network designed to boost the economic areas. The Public Authority for Special Economic Zones and Free Zones said its membership in the World Free Zones Organization will help improve the competitiveness of the territories it oversees, including industrial cities and free zones, while opening new channels to promote them as flexible and investor-ready destinations with advanced infrastructure. Free zones are designated areas that offer businesses incentives such as tax exemptions, full foreign ownership, and simplified customs procedures. These districts are designed to attract investment, boost exports, and support economic diversification by providing a competitive and flexible environment for companies to operate. They are increasingly central to economies in the Middle East, with hubs like Dubai's Jebel Ali, Riyadh's Special Integrated Logistics Zone, and Egypt's Suez Canal Economic Zone driving trade and investment. 'Through this international partnership, the authority seeks to expand its network of economic relations and benefit from the latest global trends in the management and development of special economic zones, free zones, and industrial cities,' Oman News Agency reported. the Public Authority for Special Economic Zones and Free Zones has joined the World Free Zones Organization (World FZO), which includes more than 1,600 members from 140 countries. @WorldFreeZone — هيئة المناطق الاقتصادية والحرة - سلطنة عُمان (@omanopaz) July 29, 2025 This comes as Oman's special economic zones attracted $43.16 billion in investments during the first half of 2023, driven by major projects in Sohar, Salalah, and Duqm, supported by a favorable investment climate fostered by OPAZ and the government's diversification strategy. By joining the organization, which brings together more than 1,600 zones and economic institutions from over 140 countries, the authority will be able to exchange expertise and strengthen its operational capabilities to keep Oman's zones competitive globally. The membership will also support efforts to improve operational efficiency and develop more targeted promotion and marketing strategies to attract high-value projects, ONA said. The body currently oversees 23 operating special economic zones, free zones, and industrial cities across Oman. These districts attracted cumulative investments totaling approximately 21 billion Omani rials ($54.5 billion) by the end of 2024, reflecting their growing appeal to investors. The World Free Zones Organization is a network that includes free zones, multinational corporations, and industry stakeholders committed to fostering global trade and investment. Across the wider Middle East and North Africa region, free zones have become critical enablers of economic diversification and foreign direct investment. The UAE is home to some of the most prominent examples, including Jebel Ali Free Zone, which hosts more than 9,000 companies, and Abu Dhabi's Khalifa Industrial Zone, which supports large-scale manufacturing and logistics operations. In Saudi Arabia, the King Abdullah Economic City and the Special Integrated Logistics Zone in Riyadh have emerged as strategic hubs supporting Vision 2030 objectives, while Egypt's Suez Canal Economic Zone has attracted global interest as a key gateway for trade and industry.

The GCC's Strategic Footprint: Gulf Investment as an Emerging Power Bloc in Africa
The GCC's Strategic Footprint: Gulf Investment as an Emerging Power Bloc in Africa

Al Jazeera

time03-07-2025

  • Business
  • Al Jazeera

The GCC's Strategic Footprint: Gulf Investment as an Emerging Power Bloc in Africa

Gulf investments in Africa have surged, driven by economic diversification and geopolitical ambitions. Targeting sectors like infrastructure, energy and agriculture, these investments offer growth potential but also risks, requiring African states to ensure sustainable, transparent and mutually beneficial outcomes. Recent reports revealed a surge in Gulf states' investments in Africa, as the Gulf Cooperation Council (GCC)—which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates—expands its strategic presence on the continent. These developments coincide with the pursuit of economic interests by some GCC countries in specific sectors in many African countries, with some geopolitical and security dimensions, and efforts to secure resources and enhance global influence. So, how are Gulf investments transforming the Gulf States into a rising power bloc in Africa? And what does this mean for Africa? GCC states' interests in Africa The Gulf states' interests in Africa are varied and rapidly evolving, motivated by economic imperatives, geopolitical aspirations and security concerns. In recent years, these interests have grown significantly, shifting away from traditional aid and collaboration and toward long-term strategic investments. This shift is also happening while Africa is witnessing rapid economic growth and an expanding middle class, providing promising market opportunities for Gulf states' products and services, as well as lucrative investment opportunities across various sectors on the continent. (1) Looking at recent data, it is clear that Gulf states have significantly increased their financial commitments to Africa. In 2022 and 2023 alone, they invested approximately $113 billion in foreign direct investment (FDI) into the continent, outpacing their total investments during the previous decade. (2) A UN Trade and Development (UNCTAD) report shows that Africa as a whole saw a 75% increase in foreign direct investment in 2024, driven in part by Egypt's mega infrastructure project. (3) The United Arab Emirates is Africa's largest Gulf investor, with commitments totalling $97 billion from 2022 to 2023, (4) and more than $110 billion between 2019 and 2023. (5) The first Gulf interest is evident in economic diversification efforts led by government agencies and private companies, as Gulf countries seek to reduce their reliance on hydrocarbons. Africa's economic capacities and potentials are consistent with this trend, given that the continent offers an ideal opportunity for new areas of trade and investment due to its enormous untapped resources, growing markets and population, and sizeable youth population. The investments of a number of Gulf countries also align with their national visions, such as Saudi Arabia's Vision 2030, (6) prioritising sectors in Africa such as renewable energy, infrastructure, logistics, agriculture, mining and technology. The significant investment in infrastructure and logistics services in Africa suggests that certain Gulf nations want to reinforce their position as vital logistical and commercial gateways between Africa, Asia and Europe. This has led to investments in African ports, airports and transportation networks to facilitate trade flows, which commonly linked them to Gulf commercial hubs. Examples of these investments include the Emirati company DP World, which operates ports in many African countries while continuing to expand into other African ports. (7) Qatari investments include approximately $1.3 billion in an airport under construction in Rwanda, (8) along with Qatar Airways' codeshare agreements and stakes in several African airlines, such as RwandAir, (9) Air Botswana, (10) and Airlink in South Africa. (11) The Saudi Public Investment Fund is also planning major investments in the logistics and transportation sectors in Africa. A number of Gulf countries are involved in Africa's oil, gas and energy sectors, where Gulf companies assist in exploration, refining and distribution operations and contribute to African energy transition efforts. Examples include Qatar's expanded investments since 2021 in the energy sectors of Zambia and South Africa; (12) the Emirati company Masdar's pledge to invest $2 billion in renewable energy projects in Africa by 2030; (13) and the Saudi company ACWA Power's investments in Africa, which were reported in October 2024 to have reached $7 billion. (14) Besides, Africa's rich mineral resources, including gold, copper and lithium, attract the interests of and significant investments from Gulf countries in order to secure access to vital minerals to diversify their economies and achieve their industrial ambitions and technological progress, especially in sectors such as electric vehicles and renewable energy. This is underscored by the multi-billion-dollar investments of companies such as the International Holding Company (headquartered in the UAE) in African mining operations, including a significant stake in Zambia's Mopani copper mines, (15) as well as mining deals in Africa concluded by Ma'aden, a Saudi company, and the Public Investment Fund, Saudi Arabia's sovereign wealth fund. (16) Gulf states have also substantially boosted their investments in Africa's communications and digital services industries. Companies such as the UAE's Etisalat (rebranded as 'e&') (17) and Qatar's Ooredoo (18) have invested in Africa's digital infrastructure, enhancing connectivity and supporting the continent's growing digital economies. Meanwhile, financial institutions and sovereign wealth funds from GCC countries are channelling capital into African startups, fintech initiatives, and emerging industries—such as Qatar's investment in Airtel Mobile Commerce, the mobile money division of Airtel Africa. (19) There's been a significant uptick in investment from Gulf countries into African agriculture, all in a bid to boost their food security. Given that GCC states rely heavily on food imports—up to 85% in some cases—due to their arid climate, (20) Africa's abundant arable land and water resources make it a crucial area for ensuring stable long-term food supplies. These investments include purchasing agricultural land, increasing food production, improving infrastructure, and establishing processing and logistical services for local consumption and export to the Gulf area, with a particular emphasis on staple crop and livestock production. (21) The geographical location of the Gulf States, along with their economic and political agendas, has given their engagement in Africa a geopolitical dimension—particularly in the Horn of Africa, the Red Sea region and beyond. These dimensions are linked to the fact that the stability of the Horn of Africa and the Red Sea is crucial to the Gulf States as these two regions are vital to maritime trade routes linking Asia, Europe and Africa through the Suez Canal. This has sparked a wave of investments in ports and logistics services throughout the Horn of Africa and the Red Sea. It also includes military and maritime partnerships, as well as active participation in regional security initiatives. One notable effort is the Council of Arab and African Coastal States on the Red Sea and Gulf of Aden, (22) which was launched by Saudi Arabia in 2020. These initiatives are all geared towards safeguarding the economic and commercial lifelines in the Horn of Africa and the Red Sea from threats like piracy, smuggling and conflicts. Through various frameworks of educational, religious, and humanitarian diplomacy, the Gulf states provide cultural programmes, scholarships and humanitarian aid to countries in the Horn of Africa, along the Red Sea and elsewhere on the continent, aiming to strengthen their geopolitical influence and foster goodwill among local populations. However, some strategies employed by some Gulf states to enhance their geopolitical presence in parts of Africa, particularly the Horn of Africa and the Red Sea, have led to accusations—especially against the UAE. Critics argue that these actions are undermining state sovereignty, disrupting political stability and exacerbating conflicts in Sudan, Somalia, Libya and Ethiopia. (23) The UAE has consistently denied these accusations, (24) and often framed its engagement in Africa as based on trade and development foundations, aiming to promote stability and economic growth through investment and infrastructure development. In addition, some Gulf capitals are consolidating their role in Africa as centres of diplomacy and conflict resolution. Qatar is at the forefront of these efforts, leveraging its economic ties and reputation as a neutral mediator—demonstrated by its successful diplomatic role in the Chad crisis in 2022, (25) its facilitation of ongoing peace talks between the Democratic Republic of Congo and Rwanda over the eastern Congo conflict, and the ceasefire agreement brokered in April 2025 between the Congolese government and the March 23 Movement (M23) rebels. (26). Gulf investment as an emerging power bloc in Africa Most Gulf States' previous investment strategies largely overlooked Africa, particularly sub-Saharan Africa. This was likely due to their economic priorities, perceived risks, and a narrower strategic outlook shaped by factors such as political instability, weak regulatory environments, limited infrastructure and underdeveloped financial markets. As a result, Gulf investments were directed toward established, liquid markets in the West or strategically significant regions closer to home, such as the Middle East and North Africa. It can also be argued that the diversification strategies of the Gulf States were less urgent and less expansive until the past decade, largely due to the oil-based nature of their economies. Although these countries provided humanitarian aid and engaged in limited trade with select sub-Saharan African states, there was little momentum for large-scale, diversified investments in the region's emerging markets. Moreover, broad opportunities in sub-Saharan sectors aligned with the core interests of the Gulf States were scarce—aside from the extraction of basic commodities in a few areas. As a result, sub-Saharan Africa featured far less prominently on the Gulf investment radar compared to the more mature and accessible markets of the West, the Middle East and North Africa. The recent surge in Gulf investments across Africa—particularly in sub-Saharan Africa—not only reflects a shift in the Gulf states' outlook toward the continent but also signals their emergence as an influential power bloc in Africa. This is especially evident given that a significant share of these investments targets strategic sectors such as infrastructure. Recent developments, including the alleged involvement of some Gulf investments in conflicts in East Africa and the Red Sea, further underscore this evolving dynamic. Moreover, the geographical proximity of the Gulf countries to Africa is an essential factor that helps its emergence as a major power bloc on the continent. This proximity, especially across the Red Sea, directly facilitates the expansion of vital trade routes, making Africa an indispensable part of the Gulf's global logistical and economic corridors. It also allows for shorter shipping times, lower transportation costs, and more efficient supply chains, linking African resources and markets directly to Gulf ports and re-export centres, enhancing the Gulf's role as a vital intermediary in global trade flows and augmenting its economic integration with the continent. Another key factor is that Gulf capital can help address Africa's significant infrastructure and development financing gaps, positioning Gulf states as indispensable partners for many African countries. This is reinforced by the Gulf countries' strategic efforts, such as regularly hosting high-level summits and forums that bring together African leaders, policymakers and business elites. These platforms facilitate dialogue on shared challenges, foster partnerships, promote investment opportunities in Africa, and enable Gulf states to present their vision for cooperation while demonstrating their long-term commitment to the continent. For instance, the Saudi-Africa Summit held in November 2023 (27) and the New Africa Summit, (28) organised as part of the eighth Saudi Future Investment Initiative in October 2024, have provided critical platforms for high-level engagement and relationship-building. These events promote the development of deeper economic and diplomatic ties that enhance the Gulf states' geopolitical influence while offering potential alternatives to other global actors, such as China, the European Union and the United States. This dynamic is further reinforced by the shared membership of Gulf and African countries in multilateral organisations—such as the G20, the Organisation of the Petroleum Exporting Countries (OPEC) and the Organisation of Islamic Cooperation (OIC)—that facilitate political cooperation, economic investment and security collaboration across the continent. While one of the features of the recent economic participation of Gulf countries in Africa is that they often provide more flexible and rapid financing with fewer political conditions compared to Western models, which suits African governments seeking alternative financing, these Gulf economic investments are complemented by soft power diplomacy, given that the Gulf states are among the most prominent donors of humanitarian and development aid to African countries. They provide financial and material support during crises and natural disasters and for long-term development projects, which consolidates goodwill and positive perception for the Gulf countries and presents them as a sympathetic and reliable partner in times of need. The shared Islamic heritage between the Gulf states and many African countries enhances the Gulf states' influence on the continent. Several Gulf states fund the building and renovation of mosques, the establish of Arab-Islamic centres, religious cultural events and scholarships for African students to study at Gulf universities and religious organisations. These initiatives promote cultural exchange, strengthen common identities and build deep-rooted ties that go beyond purely economic transactions, which enhances the affinity for the Gulf states at the societal level. In addition, the Gulf countries, especially Saudi Arabia, Qatar, Kuwait and the UAE, are making remarkable educational efforts and providing vocational training programmes for African youth. Scholarships offered to Africans at the most prominent Gulf universities are increasing, which contributes to the formation of future leaders in Africa who are likely to maintain positive relations with the Gulf countries. The emergence of the Gulf states as an active bloc in Africa also reflects their growing involvement in conflict resolution and peace-building efforts on the continent—recognising that peace and stability are essential for trade, investment, and safeguarding their own security and economic interests. Their approach includes initiatives that position them as constructive partners to African governments, earning them respect and political capital among African stakeholders and within the broader international community. Implications for Africa Understanding the implications of the Gulf's growing investments in Africa requires examining their defining characteristics—most notably, that a significant share originates from sovereign wealth funds and state-owned companies. This enables the implementation of large-scale, long-term projects aligned with strategic priorities. Gulf states often frame their investments as mutually beneficial partnerships: while they work to secure resources and diversify their economies, African countries gain much-needed capital to advance their national development agendas. Another characteristic of the Gulf investments is that they are often less prescriptive or tied to the terms of governance and human rights issues compared to some Western lenders; hence, their investments are attractive to African governments. Also, while there is competition between individual Gulf countries, there is also increasing coordination and joint ventures, indicating a more coherent 'bloc' approach over time. Many Gulf investments, unlike short-term aid, are linked to strategic concessions and partnerships spanning decades, indicating the commitment of Gulf states to sustainable or long-term engagement in Africa. Based on the above, the new wave of Gulf investments in Africa has positive indications on the continent. This is because the volume of the investments, which exceeds previous levels, could stimulate African economic growth and industrialisation efforts while creating job opportunities and promoting development in vital sectors, in addition to highlighting Africa's enormous potential in previously ignored sectors. Likewise, strategically directing Gulf investments toward sectors that address Africa's core development needs can strengthen the continent's efforts to achieve sustainable growth. Investment is particularly crucial for resolving infrastructure challenges, which can improve connectivity, lower trade costs and advance the integration of African economies. Gulf investments also offer an important alternative source of financing and expertise, reducing Africa's dependence on any single external actor. This aligns with Africa's broader vision for a more multipolar world order and enhances the agency of African countries in shaping their own development strategies. In addition to the above, Gulf investments, especially in logistics services and port infrastructure, which aim to enhance trade flows between Africa and the Gulf, can accelerate the integration of Africa into global supply chains. The African Continental Free Trade Area (AfCFTA) can also amplify these benefits by creating a larger and more attractive market. Similarly, while these Gulf partnerships in Africa are still in their infancy, they have great potential for technology transfer and skills development, as Gulf companies establishing their diversified operations within the continent will require bringing new technologies and management practices while providing vocational training for African employees, thus contributing to human capital development. However, these investments also present complex challenges for African countries. A key concern is that much of the Gulf's investment is driven by the pursuit of natural resources, such as minerals, agricultural land, oil and gas. This underscores the need for African states to ensure that such investments contribute to value addition within the continent, rather than perpetuating a model of raw material extraction. Without this, there is a risk of reinforcing a new form of the 'poverty paradox', where resource-rich countries and communities remain economically underdeveloped. Furthermore, although Gulf investments often come with fewer conditions than those imposed by Western institutions and lenders, the scale of these financial flows may contribute to rising debt burdens. In addition, resource extraction, if managed poorly, can fuel conflicts and social tensions. To mitigate these risks, African governments will need to establish robust regulatory frameworks and ensure meaningful local community engagement, particularly to address concerns around land rights, displacement and food security—especially where large-scale agricultural projects prioritise exports over local needs. Environmental sustainability must also be a priority, as resource extraction and industrial agriculture can threaten ecosystems if not carefully managed. Another key consideration is transparency and the geopolitical ramifications of increased Gulf engagement. African governments must pursue transparent negotiations and fair implementation of investment agreements to prevent corruption, safeguard national interests and ensure equitable benefits. At the same time, while Gulf investments offer diversification, they are taking place within a broader context of global competition for influence in Africa. If not navigated carefully, this dynamic may expose African countries to external pressures or deepen internal divisions linked to shifting geopolitical alignments. Conclusion The Gulf States' interests and expanding footprint in Africa are diverse and continually evolving, reflecting a clear commitment to building lasting partnerships. This engagement is driven by shared economic interests and a broader ambition to enhance their geopolitical influence both on the continent and globally. Gulf investments provide critical foreign direct investment (FDI), support infrastructure development, boost agricultural production, create employment opportunities, and offer alternative financing options, often with fewer conditions than traditional lenders. However, concerns remain regarding potential inflationary pressures, the impact of these investments on domestic resources, and the need to align projects with the long-term development priorities of African countries. Furthermore, Gulf engagement unfolds within a competitive landscape, where global powers—including China—vie for influence and strategic projects across Africa. Ensuring that this new wave of investment contributes to sustainable, inclusive development will require careful governance, transparency and proactive policymaking by African stakeholders. 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