Thursday, November 21, 2024

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The strategic move by the United Arab Emirates that is revolutionizing African ports

The United Arab Emirates have deployed an ambitious strategy on the African continent, which is evident in their growing presence in port management and control. The expansion of their maritime influence, therefore, is not just a matter of trade, but also involves crucial geopolitical aspects. In this context, both Dubai and Abu Dhabi have made strategic decisions that allow them to consolidate their role in the African economy, investments, and trade agreements.

Over the last decade, trade between the Emirates and African countries has grown significantly, with a recorded increase of 30% during this period. This rise not only highlights the importance of Africa to the Emirates but also underscores how these nations are diversifying their trade relations in a globalized world. Foreign direct investment from 2012 to 2022 reached 59.4 billion dollars, establishing solid foundations on the continent.

With a particular focus on controlling critical maritime routes, the Emirates seek to position themselves as leaders in regional trade, which is part of their broader plan for expansion and power assertion. The alliance between state-owned and private companies has allowed these emirates to not only build ports but also acquire logistics companies in various African nations, thereby strengthening their control over key trade flows.

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The maritime strategy of DP World and AD Ports in Africa

LA ESTRATEGIA MARÍTIMA DE DP WORLD Y AD PORTS EN ÁFRICA

The central role of DP World and AD Ports is undeniable in the UAE’s expansion strategy in Africa. DP World, as an entity controlled by the emirate of Dubai, has managed to position itself as an indispensable player in the port sector. With a network that spans from Algeria to South Africa, this company not only operates ports but also modernizes logistics infrastructure in the region.

In its quest for a larger market share, DP World has made significant acquisitions, which operates in several African countries. These actions not only allow DP World to expand its operational capacity but also enhance efficiency in the transportation of goods.

AD Ports, on the other hand, has established a series of strategic contracts in various regions of Africa. Essentially, it has positioned itself on the Atlantic coast with operations in countries like Angola and the Republic of Congo. Additionally, its progress on the Red Sea coast, managing numerous Egyptian tourist ports, strengthens maritime infrastructure in the region. This dynamic contributes to the consolidation of the Emirati brand in the logistics sector.

The control of access to the Red Sea and the Horn of Africa.

EL CONTROL DEL ACCESO AL MAR ROJO Y EL CUERNO DE ÁFRICA

One of the most crucial aspects of the United Arab Emirates’ strategy involves controlling access to the Red Sea. Its support for the Southern Transitional Council’s separatists in Yemen has allowed it to project its influence in this strategic maritime route. Control of the Gulf of Aden and the Socotra Islands, along with Perim in the Bab-el-Mandeb Strait, is a significant geopolitical advantage in the region.

In the Horn of Africa, DP World has been establishing relationships with various local actors. Although this approach has generated tensions, such as the one with the central government of Somalia, its agreements with the self-proclaimed Republic of Somaliland to operate the port of Berbera are representative of its unconventional strategy. These types of commitments, however, have sparked diplomatic reactions from Somalia, issues that have become complex in an environment filled with geopolitical challenges.

Additionally, the relationship with Djibouti also illustrates the risks the UAE faces in its expansion. The termination of the Doraleh port terminal concession due to bribery allegations has led DP World to litigate against the Djiboutian government, allowing other actors, such as China, to fill the void left. Such situations highlight the fragility of alliances in a continent where geopolitical interests are varied and often conflicting.

The terrorist insurrection in Africa and its implications.

LA INSURRECCIÓN TERRORISTA EN ÁFRICA Y SUS IMPLICACIONES

Terrorist violence in the region poses an additional challenge for the United Arab Emirates in its quest to expand its influence. In a recent attack in February 2024, four Emirati soldiers and one from Bahrain were killed in Mogadishu, a reminder of the constant threat posed by groups like Al Shabab. This situation not only affects the security of troops but also logistics in the region.

The resurgence of jihadist attacks reveals the intricate interplay between international forces and local actors. For example, Al Shabab’s attack on a DP World manager in 2019 at the port of Bosaso indicates the vulnerability of Emirati companies’ operations. These events, therefore, underscore the need for a coherent strategy that not only considers investments but also operations in a hostile environment.

As other actors, such as Turkey, begin to engage in the region, reinforcing their own alliances and security capabilities, the Emirates must maintain a focus on defending their commercial interests. This includes not only the Red Sea but also the rest of Africa, where the landscape is shifting and filled with challenges. The continuity of their operations depends on the ability to navigate this complex and sustainable environment.

Ana Carina Rodriguez
Ana Carina Rodriguez
Periodista especializada en inversión en inmuebles en Medio Oriente. Escribo para Noticias AE todo lo relacionado con inversiones e inmuebles.

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