Gulf investments in North Africa : a growing economic and strategic influence
Egypt : a top priority for Riyadh and Abu Dhabi
Egypt has emerged as one of the primary destinations for Saudi and Emirati investments. Over the past years, Gulf sovereign wealth funds have actively financed major infrastructure projects, acquired stakes in local companies, and modernized critical industries.
Saudi Arabia’s Public Investment Fund (PIF) has been at the forefront of this push, launching the Saudi Egyptian Investment Company (SEIC) in 2022. With a potential investment portfolio of up to $24 billion, this initiative focuses on strategic sectors such as real estate, energy, telecommunications, and logistics. The acquisition of stakes in Egyptian banks and industrial companies aligns with Riyadh’s goal of deepening its economic foothold in Egypt.
Meanwhile, the Abu Dhabi Developmental Holding Company (ADQ) has invested more than $10 billion in Egypt in recent years, securing major acquisitions in healthcare, energy, and transportation. In 2022, ADQ purchased stakes in several Egyptian banks and fertilizer companies, reinforcing the UAE’s position in the country’s economic landscape.
Beyond financial interests, Gulf investments in Egypt serve a geopolitical purpose, ensuring stability in a country that plays a crucial role in the Middle East’s political and security dynamics.
Morocco: a key investment destination for the UAE
Morocco is another preferred investment destination for Gulf sovereign wealth funds, particularly those from Abu Dhabi and Dubai. Over the years, these investors have poured billions of dollars into real estate, tourism, renewable energy, and infrastructure projects.
The Abu Dhabi Investment Authority (ADIA) and Mubadala have played a leading role in this expansion. ADIA has made substantial investments in luxury real estate and hospitality projects in Casablanca, Marrakech, and Tangier. Mubadala, on the other hand, has focused on strategic solar and wind energy projects, supporting Morocco’s ambitious renewable energy transition.
Renewable energy, in particular, has become a major investment pillar. Morocco’s goal of becoming a regional leader in green energy has attracted significant Emirati capital, helping to fund projects like the Noor Ouarzazate Solar Complex, one of the world’s largest solar power plants. These investments not only support Morocco’s sustainable development but also position Abu Dhabi as a key player in the global clean energy sector.
In addition to energy, Emirati investors are increasingly engaged in banking, technology, and startup funding, fostering Morocco’s growing innovation ecosystem.
Tunisia: a modest but emerging investment hub
Unlike Morocco and Egypt, Tunisia has historically attracted fewer Gulf investments due to economic instability and political uncertainty. However, in recent years, Emirati and Kuwaiti sovereign funds have started to show interest, particularly in energy, agriculture, and telecommunications.
Abu Dhabi and Riyadh have been exploring opportunities in solar energy and logistics infrastructure, while the Kuwait Fund for Arab Economic Development has financed transportation and water accessibility projects.
Though Tunisia is not yet a major destination for Gulf investments, this could change as the country improves its business climate and implements economic reforms to attract more foreign capital.
The strategic and economic rationale behind these investments
The surge in Gulf investments in North Africa is driven by a dual strategy. On one hand, it aligns with the economic diversification plans of Saudi Arabia and the UAE, as both countries seek to reduce their reliance on oil revenues. By investing in strategic industries in North Africa, Gulf states are securing new sources of growth while creating regional economic synergies.
On the other hand, these investments are part of a broader geopolitical agenda. Saudi Arabia and the UAE aim to expand their influence in North Africa, a region where Turkey, China, and Western powers are also competing for economic dominance. By financing large-scale infrastructure projects and acquiring stakes in key industries, Riyadh and Abu Dhabi are deepening their diplomatic and economic ties with North African governments.
A trend set to continue
As Gulf sovereign wealth funds continue to expand, investments in North Africa are expected to increase further in the coming years. Saudi Arabia’s Vision 2030 and the UAE’s diversification strategies will likely drive additional capital inflows into the region.
For North African countries, the challenge will be to maximize the benefits of these investments, ensuring that funds are directed towards job-creating industries and sustainable economic growth while maintaining economic sovereignty.
If managed effectively, these investments could serve as a powerful engine for regional development, driving industrialization, technological innovation, and infrastructure modernization. A new era of economic cooperation between the Gulf and North Africa is taking shape, one that could generate mutual prosperity for both regions.
Sources :
https://fr.wikipedia.org/wiki/Fonds_public_d%27investissement_d%27Arabie_saoudite
