Why the UAE is pouring billions into South Africa

Investment from the United Arab Emirates into South Africa exceeded $2.5 billion in the first half of 2026, underscoring growing economic ties between the two countries, according to the UAE Ministry of Foreign Affairs. 

South African investment in the UAE also surpassed $800 million during the same period, highlighting what the ministry described as an increasingly two-way economic relationship.

The UAE is South Africa’s largest trading partner among Gulf Cooperation Council (GCC) countries, while South Africa is the UAE’s second-largest trading partner in Africa.

Bilateral non-oil trade reached about $8.5 billion in 2024, representing a 14% increase from 2023. Momentum continued in 2025, with non-oil trade reaching $3.93 billion in the first half of the year.

The ministry said investment was becoming increasingly diversified across sectors including agriculture, logistics, fintech, artificial intelligence, manufacturing, renewable energy, mining, healthcare and education.

Strategic shift 

‘This reflects a strategic shift toward partnerships supporting productive capacity, technology adoption and long-term growth,‘ the ministry said.

Private-sector engagement has also increased, with Dubai Chambers’ ‘New Horizons‘ trade mission bringing 24 Dubai-based companies to South Africa during the first half of 2026.

The mission facilitated 674 business meetings, while 873 South African companies were registered as active members of Dubai Chambers by the end of the first quarter of 2026.

Several recent projects have further strengthened the investment relationship.

In November 2025, fintech company Optasia became the first UAE company to list on the Johannesburg Stock Exchange, in what was described as Africa’s largest fintech initial public offering.

Telecommunications and tourism

During the 2026 South Africa Investment Conference, DP World announced approximately $80 million in investments in logistics, ports and infrastructure.

Cooperation has also expanded into telecommunications and tourism. Space42 launched Thuraya 4 satellite services and established a wholesale services office, while Jumeirah Group entered into a strategic partnership with Thanda Group for tourism development in South Africa and Tanzania.

The ministry said the relationship was moving beyond traditional trade towards more diversified investment-led growth.

‘With strengthening investment flows and deepening private-sector collaboration, the UAE-South Africa partnership increasingly positions both economies for sustained commercial cooperation and industrial development,‘ it said.

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Source:Betha Madhomu/  African Insider

Featured Image: Copilot / African Insider