UAE and South Africa enjoy deep economic ties with major trade and investment gains

UAE and South Africa enjoy deep economic ties with major trade and investment gains

• South Africa-UAE bilateral trade exceeds USD 6.5 billion
• Key sectors including renewable energy, agriculture, and fintech drive mutual growth

Economic relations between South Africa and the United Arab Emirates are reaching new heights. UAE government data shows South Africa is the UAE’s second-largest trading partner in Africa, accounting for nearly 8% of the UAE’s non-oil trade. Within the GCC, the UAE is now one of South Africa’s key import partners, holding a 38% share of the region’s trade.

These figures echo a general trend of growing trade between the two nations, which experienced an explosive growth surge of 45% between 2020 and 2023, reflecting a shared commitment from both nations to strengthen economic links. In 2023 alone, South Africa’s imports from the UAE reached USD 4 billion, while its exports to the UAE stood at USD 2.53 billion.

Investment flows between the two nations are also accelerating. UAE investments in South Africa exceeded USD 1.3 billion in 2024, while South Africa’s foreign direct investment into the UAE crossed USD 600 million during the same period.

This growing momentum has led to new initiatives to foster business collaboration. The South Africa Business Group in the UAE was established to connect companies and boost trade. Dubai Chamber also opened an office in South Africa, and major MoUs were signed between the UAE Federation of Chambers of Commerce and key South African business councils.

The UAE’s world-class infrastructure, tax-free environment, strategic location, and strong financial system continue to attract South African businesses seeking to expand into the region. In parallel, several leading UAE companies—including ADNOC, DP World, AMEA Power, Infinity Energy, and AWS Distribution—have launched major operations in South Africa.

Key sectors driving bilateral interest include agriculture, fintech, AI, manufacturing, renewable energy, digital economy, healthcare, and education. These industries are not only attracting investment but also creating opportunities for people on both sides.

Recent years have seen several landmark agreements, including AMEA Power’s 2023 power purchase deal for an 85MW solar PV plant, the opening of Dubai Chamber’s Johannesburg office, and Infinity Power’s acquisition of Lekela Power, marking Africa’s largest renewable energy transaction to date. In 2024, ADNOC acquired OMV’s South African petrochemical assets, DP World expanded into South African logistics, and AMEA Power signed a 20-year agreement for the 120MW Dornhoek solar project, valued at USD 120 million.

With these milestones, UAE–South Africa economic relations are entering a new era of growth and partnership, underpinned by shared ambitions for sustainable development and long-term prosperity.

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