Angola project demonstrates GCC’s growing Africa interest

• GCC investments in Africa on rise
• Dubai Investments appoints constructors
• Bilateral trade with UAE $4.3 billion

Dubai Investments has appointed a Chinese construction company as the main contractor on its flagship project in Angola as GCC investments in Africa rise.

China Harbour Engineering Company will undertake the first phase of Dubai Investments Park Angola, covering 2,000 hectares of residential, commercial and industrial property in the West African country.

The award of the 10-month contract marks a “significant leap forward” for the project, said Omar Al Mesmar, general manager of Dubai Investments Park (DIP).

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“Infrastructure works represent a crucial foundation for the overall success and sustainability of DIP Angola and lays down the framework for attracting further investment, businesses, and industries to the region,” he said. 

The project is part of a growing number of foreign direct investment (FDI) projects led by GCC-based investors in Africa.

Last year, companies from the Gulf announced 73 FDI projects in Africa worth more than $53 billion, according to the latest data from fDi Markets. 

Dubai Investments Park Angola

This was the second-highest level since 2010. Only 2022 saw more FDI capital expenditure into the continent at $60 billion across 83 projects. 

The DIP Angola project, based 50km from the capital Luanda, includes an 18-hole golf course and housing near retail and industrial sites, as well as communal parks and leisure facilities.

• UAE in talks to buy more African land to aid food security
• UAE firms to develop land in Angola for rice and avocados
• Masdar strikes project deals in Angola and Kazakhstan

Bilateral trade between the UAE and Angola totalled more than $4.3 billion in 2022, with the African nation the dominant player thanks to its exports of diamonds, according to data from the Observatory of Economic Complexity.

Angola produces more than one million barrels of oil per day. Hydrocarbons make up about 90 percent of its total exports.

According to the International Monetary Fund, economic growth is estimated at 0.5 percent for 2023. Headline inflation increased significantly to 20 percent in December, driven by the depreciation of the kwanza and cuts in fuel subsidies.