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According to the latest white paper issued by the Economist Intelligence Unit (EIU) and commissioned by the Dubai Chamber of Commerce, the UAE accounted for 88% of GCC investment in sub-Saharan Africa from January 2016 to July 2021, or US$1.2 billion. Leads to 6day The Africa Global Business Forum in Dubai.
The main findings of the report will be highlighted at a high-level forum organized by the Dubai Chamber of Commerce and Expo 2020 Dubai at Expo 2020 Dubai from October 13th to 14th. Based on a survey of 200 business leaders in sub-Saharan Africa, the representative white paper analyzed several trends in reshaping the business landscape in Africa during the pandemic, the response of the African market to new challenges, and the business prospects after the pandemic, emphasizing the promotion of GCC and Africa in the near future.
Growth sector and recommendations
Fintech, healthcare, agriculture, and e-commerce are identified in the report as industries with high potential for revenue growth that business leaders believe in 2022. About 90% of the executives surveyed stated that they expect fintech to achieve the greatest growth in 2022, followed by healthcare (89%) and agriculture and food (87%).
The report emphasized that Africa needs to provide basic knowledge, including legislation, regulations and infrastructure, to promote the growth of key sectors. Second, the report emphasizes that the digital economy is the main engine of growth on the African continent, and then emphasizes the role that the Gulf Cooperation Council countries can play in supporting Africa to bridge the infrastructure gap. The report details the role that African companies can play in supporting the Gulf economies and expanding in the region.
The recommendations outlined in the report include: establishing a new business structure to ensure the economic foundation of the African market, passing legislation to regulate economic sectors and guiding the economy to achieve sustainable strategic goals, and to provide the necessary infrastructure for business growth and prosperity.
The main obstacles restricting bilateral business exchanges include cumbersome regulation and bureaucracy, which are considered the biggest obstacles to growth. 59% of the executives surveyed believe that, as well as lack of public facilities, poor roads, and the inability to integrate suppliers and manufacturers with retail centers. Connected, and weak digital infrastructure.
Synergy and cooperation between the UAE and Africa
The digital economy sector has been attracting ever-increasing and unprecedented investment, especially in financial technology. Fintech From 107 million U.S. dollars in 2019 to more than 330 million U.S. dollars in the first half of 2021.
The report shows that 35% of African executives will use online platforms in their transactions, which creates ideal opportunities for African entrepreneurs to benefit from the UAE’s experience in this area. Driven by the government’s directive to establish a comprehensive digital economy, Emirates has made impressive achievements in the field of digital payments.
The UAE provides the appropriate level of expertise, investment and resources needed to fill gaps in the African market and support sustainable growth and development on the African continent. The DP World project is perhaps the best example of the contribution of UAE companies to the development of infrastructure in the African market. In addition, Etisalat in the UAE and Saudi Telecommunications Corporation (STC) have been committed to strengthening Africa’s telecommunications infrastructure for many years.
Expand trade ties
The trade relationship between the two regions shows untapped potential, and the main products of each region depend on the other. Petroleum and petrochemical products are the largest exports of the Gulf Cooperation Council to Africa, accounting for 24% and 16% respectively in the 2016-2020 period. At the same time, gold and diamonds dominate the Gulf Cooperation Council’s imports from Africa, accounting for 62% of the total during the same period, followed by copper, accounting for 8%.
Commenting on the white paper, HE Hamad Buamim, President and Chief Executive Officer of the Dubai Chamber of Commerce, stated that the findings revealed the huge untapped business potential in Africa that UAE companies can take advantage of, and pointed out that the report supports the Dubai Chamber of Commerce Efforts to find new business opportunities and promote bilateral trade.
The President and CEO of the Dubai Chamber of Commerce pointed out that the white paper provides valuable insights on the growing and expanding trade relationship between the UAE and the African market, while at the same time identifying new ways of economic cooperation and prospects for establishing mutually beneficial partnerships.
“Africa is one of our largest trading partners and is vital to our economic growth. At the same time, Dubai has long been a favorite destination for African companies and a springboard for companies that want to go out of the African continent and enter the global market. Providing accurate data and research on emerging markets is part of our efforts to provide investment opportunities for the Dubai business community,” he added.
White paper titled Unexplored opportunity: deepening trade and investment between sub-Saharan Africa and the Gulf Cooperation CouncilTo view here.
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