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Africa is increasingly becoming a key cog in the global economy, as the continent is experiencing a notable surge in foreign direct investment and project financing. These investments are driven by Africa’s vast natural resources, demographic dividend and accelerating digital and green transitions.
This investment momentum presents a compelling opportunity for Middle Eastern countries — particularly Gulf Cooperation Council members such as Saudi Arabia, the UAE and Qatar — to forge deeper economic ties with one of the world’s fastest-growing regions.
Countries can direct capital into critical minerals, infrastructure, renewable energy, digital technologies and manufacturing. By doing so, Middle Eastern investors can secure long-term economic growth and enhance energy security.
More importantly, such collaborations accelerate Africa’s development and narrow economic disparities, all while generating substantial returns.
Africa holds about 30 percent of the world’s critical minerals, including dominant shares of cobalt (about 55 percent of global reserves) and manganese (70 percent) and significant reserves of lithium, copper and rare earth elements.
Countries can direct capital into critical minerals, infrastructure, renewable energy, digital technologies and manufacturing
Dr. Majid Rafizadeh
These resources are indispensable for electric vehicles, renewable energy systems, batteries and advanced technologies. Projections indicate that revenues from just four key minerals (copper, nickel, cobalt and lithium) could reach $16 trillion globally over the next 25 years, with sub-Saharan Africa potentially capturing more than 10 percent.
However, there are some challenges. For example, African nations currently capture only about 40 percent of potential revenues. But initiatives to promote local beneficiation — such as Zimbabwe’s lithium processing mandates attracting Chinese investment and broader efforts in Congo and Zambia — could boost gross domestic product by up to 12 percent and create millions of industrial jobs if scaled effectively.
Middle Eastern engagement here aligns with individual states’ diversification strategies. Many regional countries are seeking to secure supplies for their own green ambitions and global exports, which will make such partnerships win-win endeavors.
There are several areas to invest in. First is Africa’s infrastructure deficit, which is estimated at $100 billion-plus annually. This gap represents an opportunity for megaprojects related to ports and power transmission.
Renewable energy is also a standout sector. Africa possesses immense solar, wind, hydro and geothermal potential but accounts for only about 3 percent of global clean energy investment. Energy investments on the continent are projected to reach $110 billion in 2026, with the clean components rising.
Gulf expertise in energy and desalination is highly relevant when it comes to this issue. For example, Saudi Arabia’s ACWA Power has a framework agreement in place with the African Development Bank for $5 billion in clean energy and water projects, including a major desalination plant in Senegal.
The third important sector is Africa’s digital economy. This sector is expanding rapidly, mostly fueled by a young, tech-savvy population and innovations in fintech, artificial intelligence, data centers and e-commerce.
In this sector, data centers present an opportunity, as this market could grow from $3.5 billion in 2024 to $6.8 billion by 2030. As a result, investments in subsea cables, broadband and skills development are vital.
A great asset in Africa is its young population. The continent’s population is today more than 1.58 billion, with a median age of about 19.5 years — making it the world’s youngest. By 2050, it is projected to reach about 2.5 billion, accounting for a substantial share of global population growth and labor force expansion. More than 60 percent are aged under 25, creating a massive consumer market and potential workforce.
GCC countries are on the right lines, having invested more than $100 billion in Africa in recent years
Dr. Majid Rafizadeh
This “youth bulge” can be viewed as a double-edged sword. On the one hand, it demands investments in education, skills (especially digital and technical) and job creation to avoid instability. But if harnessed properly, it can play a key role in driving innovation, productivity and consumption.
In addition, Africa’s urbanization and rising middle classes are increasing the demand for infrastructure, services and goods. These are sectors in which Middle Eastern investors excel in project delivery and financing.
GCC countries are on the right lines, having invested more than $100 billion in Africa in recent years. For instance, Saudi Arabia has pledged to invest more than $41 billion in low-income sub-Saharan African countries over the next decade, including export finance and development funds targeting energy, infrastructure, agriculture and startups. ACWA Power’s partnerships exemplify the practical steps taken in renewables and water.
The UAE has been leading in ports, logistics and mining stakes, while Qatar has announced massive pledges of $103 billion in minerals, energy and agriculture across multiple countries. These reflect wise strategies that will lead to their diversification from hydrocarbons. At the same time, they also address Africa’s needs and secure Gulf access to resources and markets.
Finally, increased foreign investment, particularly from Middle Eastern partners, helps African nations by creating jobs and transferring skills. In sectors such as critical minerals processing, renewable energy infrastructure, digital technologies and manufacturing, these investments are poised to generate millions of direct and indirect employment opportunities.
Empowering Africa’s youthful workforce to participate more fully is essential. Over time, this dynamic will enhance productivity and elevate living standards across the continent.
In a nutshell, Africa’s investment landscape is today experiencing a robust expansion, propelled by critical minerals that are vital for the global energy transition, renewable energy, and the strategic advantages of its rapidly growing and youthful population. This presents an opportunity for Middle Eastern countries, positioning the continent as an increasingly attractive destination for investments.
- Dr. Majid Rafizadeh is a Harvard-educated Iranian-American political scientist. X: @Dr_Rafizadeh