The Gulf’s growing role in Africa

Abstract

Interest in investing in Africa has waxed and waned over the years, in response to the global economic and political mood. Investor interest is beginning to regain momentum as global growth begins to slow, trade tensions amongst developed markets escalate, and the search for yield becomes ever more feverish in our low interest rate world. Rising tensions in the Gulf hastened the region’s push to forge strategic alliances in Africa, which could well illuminate a prosperous new period for those African countries able and willing to cement mutually beneficial ties. Much is at stake for all parties: Africa’s strategic geographic positioning along critical oil trade routes offers Gulf states an incentive to develop alliances, while African states could benefit from significant (and much needed) investment inflows and infrastructure development.