### Summary
The Middle East's growing involvement in Africa's development is addressing critical economic and infrastructure needs and emerging as a lifeline for African nations facing a rising debt burden.
### Facts
- The Middle East's investment in Africa is filling the void left by China's retraction, with GCC investment reaching $8.3 billion in 2022.
- Traditional ties between the GCC and North Africa are shifting towards sub-Saharan Africa, creating new avenues for collaboration.
- The GCC's interest in Africa's growth is fueled by robust GDP figures and an abundance of available capital.
- The Middle East possesses ample capital and a sophisticated Islamic finance market that can cater to Africa's needs.
- The GCC's diversification away from natural resources has paved the way for substantial investment in various sectors, including infrastructure and food security.
- Challenges hindering growth in Africa include an infrastructure deficit and political instability.
- The UAE and Kenya are negotiating an economic partnership agreement to enhance bilateral trade.
### Summary
Saudi Arabia's $2.6 billion mining deal with Vale SA positions the Kingdom as a global player in the mining industry and reshapes the global decarbonization landscape.
### Facts
- 💰 Saudi Arabia secured a 10% interest in mines worldwide that produce critical materials for decarbonization through a $2.6 billion deal with Vale SA.
- 🌍 The deal marks a shift in the metal and mining investment landscape and positions Saudi Arabia as a pivotal global player.
- ❓ Governments worldwide are questioning who controls the commodities needed for decarbonization and sustaining the economy during climate change and volatile markets.
- 🇨🇳 China, previously the dominant mining country, is seeing a shift in the mining industry due to geopolitical factors.
- ⛏️ Saudi Arabia is focusing on developing its mining industry as part of the Vision 2030 agenda for economic growth and diversification.
- 💎 The Kingdom passed a law in June 2020 to attract foreign investors into its mining business and aims to attract nearly $200 billion in mining investments by 2030.
- 🌿 The development of the mining industry is part of Saudi Arabia's transition towards green energy.
- 🌐 Saudi Arabia has formed international alliances in the mining industry, including partnerships with Vale SA and an agreement with Japan for rare earth mining.
- 🌍 The Kingdom's mining industry is still in its infancy and requires further investment, both domestically and internationally, to grow and develop expertise.
### Summary
The Middle East's growing involvement in Africa's development has emerged as a lifeline, providing much-needed economic and infrastructure support amidst rising debt and economic turmoil in the continent. GCC investment has surged, signaling the strengthening trade relationship between the two regions.
### Facts
- The Middle East-Africa partnership is becoming more prominent as China retracts its investment commitment in Africa.
- Gulf Cooperation Council (GCC) countries, including Saudi Arabia, the UAE, and Qatar, are stepping in to fill the void left by China's retreat.
- GCC investment in Africa reached $8.3 billion in 2022, indicating the potential of the partnership.
- The GCC's interest in Africa's growth is fueled by robust GDP figures in the region and an abundance of available capital.
- Traditional ties between the GCC and North Africa have been strong, but the focus is shifting towards sub-Saharan Africa.
- The GCC is diversifying away from natural resources and investing in sectors like infrastructure, telecoms, and food security.
- The region's substantial capital and Islamic finance market can effectively cater to Africa's growing population and investment needs.
- However, challenges such as an infrastructure deficit, political instability, and regulatory uncertainties hinder growth in Africa.
- Positive trends include the remarkable growth of the telecom sector and improvements in transparency and governance.
- The UAE and Kenya are negotiating a comprehensive economic partnership agreement to enhance bilateral trade.
- Private companies are also seizing opportunities, with African businesses establishing bases in the UAE to engage with global markets.
- GCC countries can provide alternatives to Chinese funding and avoid reputational risks.
- The GCC-Africa partnership leverages historical ties and geographical proximity, creating a foundation for sustained collaboration.
- Strengthening governance and transparency is crucial for successful navigation of the Middle East-Africa investment corridor.
- Private sector-led initiatives and public sector engagements are needed to foster understanding and transparency between investors and entrepreneurs from both regions.
Saudi Arabia, as a new member of the BRICS economic alliance, plans to invest $16 billion from its foreign reserves, signaling a shift towards prioritizing investment over reserves and potentially bolstering the bloc's ongoing initiatives.
Saudi Arabia's Crown Prince Mohammed bin Salman plans to invest billions of dollars in mining metals, such as zinc and copper, in order to transform the country into a metals hub and reduce its reliance on oil.
Ghana's sovereign wealth fund will invest $33 million in a lithium mine and gain a minority stake in Atlantic Lithium, as interest in electric vehicle battery metal continues to surge.
India and Saudi Arabia are discussing the possibility of trading in their local currencies, potentially ending their reliance on the US dollar for cross-border transactions.
The United States is in regular contact with Saudi Arabia to ensure a stable and affordable supply of energy to global markets, according to National Security Advisor Jake Sullivan. This comes as cuts in oil output by Saudi Arabia and Russia are expected to result in a significant market deficit.
