{"id":58384,"date":"2024-05-17T10:52:00","date_gmt":"2024-05-17T10:52:00","guid":{"rendered":"https:\/\/www.africa-press.net\/gambia\/uncategorized\/the-cost-of-the-gulfs-booming-business-in-africa"},"modified":"2024-05-17T10:58:25","modified_gmt":"2024-05-17T10:58:25","slug":"the-cost-of-the-gulfs-booming-business-in-africa","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa","title":{"rendered":"The Cost of the Gulf\u2019s Booming Business in Africa"},"content":{"rendered":"

Africa-Press – Gambia. <\/strong><\/span>Khalid bin Saleh Al Mudaifer, Saudi Arabia’s deputy minister for mining, speaks on the opening day of the Investing in African Mining Indaba in Cape Town, South Africa, on Monday, Feb. 6, 2023.Late last year, over 50 African leaders gathered in Riyadh for the first ever Saudi-Africa summit. Convened by Crown Prince Mohammed bin Salman, it brought together a me\u0301lange of democrats and dictators, reformers and kleptocrats, young go-getters and long-ruling dinosaurs. Their objective? To wangle a slice of the $40 billion Saudi Arabia plans to invest in Africa.<\/b><\/p>\n

For the African leaders in attendance, the summit was a golden opportunity to obtain generous aid and inexpensive loans from one of the world\u2019s richest countries. But to those tuned into geopolitics, the gathering spoke to a much bigger trend: the recent expansion of economic and political links between the Gulf petro-states and their African counterparts.<\/p>\n

Anxious about growing Chinese and Russian influence in Africa, U.S. officials have started encouraging the United Arab Emirates, Qatar, and Saudi Arabia to play a bigger role in continental affairs. Expanded trade and investment ties between Africa and the Gulf states could bring some win-win prosperity and development. But there is also a darker dimension to Gulf states\u2019 deepening involvement in Africa that Washington ignores at its peril\u2014one that undercuts its stated commitment to promote democracy and good governance there.<\/p>\n

A new scramble? Not quite<\/p>\n

The exponential increase in Africa-Gulf connections is undeniable. In 2023 alone, Gulf states made investment pledges worth over $53 billion\u2014almost four times more than the United States. A few decades ago, Gulf states began leveraging cultural and religious ties across North, East, and West Africa. Today, their presence is continent-wide. As investors, they bring their petro-dollars to bear in sectors like mining, commercial agriculture, and infrastructure.<\/p>\n

Even after COVID-19 decimated air links between Africa and the rest of the world, the national airlines of several Gulf states maintain a dense network of routes all across the continent. This means African political and business elites still enjoy easy access to the Gulf\u2019s financial and commercial hubs.<\/p>\n

In some ways the oft-repeated Scramble-for-Africa metaphor doesn\u2019t fit the new Gulf-Africa relations. Unlike during the colonial onslaught that took place in the late 19th century, African governments exercise plenty of agency as they forge international relationships. Instead of sending soldiers and laying claim to natural resources, outside powers are investing huge sums across Africa.<\/p>\n

Likewise, Gulf countries are largely uninterested in interfering in African countries\u2019 internal political affairs. Many African leaders prefer this approach to Western democracies\u2019 finger wagging on democracy, human rights, and engaging with China and Russia. They often welcome the strictly transactional nature of their dealings with Gulf states, whose banks and dealmakers are more willing to do business in conflict- and corruption-prone areas than their Western peers.<\/p>\n

The balance sheet of Gulf-Africa relations is a complex one. On the upside, Gulf states provide African countries with investment flows\u2014especially in key areas like energy and infrastructure\u2014that can help modernize their economies. Its financial centers have become an indispensable platform to service African firms as well as major foreign investors. Dubai, deemed \u201cthe New York for Africans now,\u201d is a primary gateway for global investors who want to do business on the continent.<\/p>\n

The downsides of the Gulf-Africa relationship, however, continue to negate many of its benefits. For example, powerful smuggling networks\u2014especially in gold\u2014are a major source of interregional financial flows. Much of this under-the-radar economic activity is centered on Dubai, which has become a major destination for illicit financial flows that sap the economies of countries all across Africa. The list of African oligarchs and politicians who have found safe haven in Dubai is a veritable rogues gallery of the continent. Described as a \u201ca loose cannon that arms warlords and spreads chaos,\u201d the UAE has also fueled instability and humanitarian crisis on the continent by backing armed groups in Libya and Sudan. Qatar and UAE have also helped bankroll South Sudan\u2019s ultra-corrupt regime. Saudi Arabia has likewise showered loans on the Central African Republic\u2019s Kremlin-backed regime.<\/p>\n

Counterweight or millstone?<\/p>\n

Washington\u2019s explicit support for Gulf countries\u2019 involvement in Africa shows how much its Africa policy has changed since the end of the Obama Administration. Bruised by a series of coups in Mali, Niger, Chad, and Gabon\u2014all longtime U.S. military partners in the Sahel region\u2014Washington no longer seems able to articulate why African countries should partner with democracies over dictatorships.<\/p>\n

Worse, U.S. officials have begun soft pedaling the good governance, human rights, and humanitarian concerns that once anchored their Africa policy. By overlooking how these priorities underpin African countries\u2019 stability and prosperity, Washington has instead picked a fight with China and Russia over who has more influence on the continent this week, this month, this year. As part of this pseudo-realpolitik approach, Washington has begun nudging Gulf states to invest in Africa\u2014particularly its strategically-important mining sector. In doing so, it has chosen to prioritize great power competition above all else. While Washington\u2019s myopic focus on undercutting its adversaries may yield short term gains, it will not necessarily benefit the U.S. or African countries over the long term. Instead of greenlighting a no-holds-barred scramble for the continent\u2019s natural resources, the U.S. should leverage its deep ties to the UAE, Qatar, Saudi Arabia, and other Gulf countries to ensure that their activities bring growth and development\u2014not corruption, smuggling, and warlordism\u2014to Africa. Doing so would show that Washington understands that, when it comes to international partners, quality matters more than quantity.<\/p>\n

time<\/b><\/p>\n

For More News And Analysis About Gambia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Gambia. Khalid bin Saleh Al Mudaifer, Saudi Arabia’s deputy minister for mining, speaks on the opening day of the Investing in African Mining Indaba in Cape Town, South Africa, on Monday, Feb. 6, 2023.Late last year, over 50 African leaders gathered in Riyadh for the first ever Saudi-Africa summit. Convened by Crown Prince […]<\/p>\n","protected":false},"author":84,"featured_media":58383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[2355,2361,260],"class_list":["post-58384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-gambia","tag-gambia"],"yoast_head":"\nThe Cost of the Gulf\u2019s Booming Business in Africa - Gambia<\/title>\n<meta name=\"description\" content=\"Khalid bin Saleh Al Mudaifer, Saudi Arabia's deputy minister for mining, speaks on the opening day of the Investing i ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Cost of the Gulf\u2019s Booming Business in Africa\" \/>\n<meta property=\"og:description\" content=\"Khalid bin Saleh Al Mudaifer, Saudi Arabia's deputy minister for mining, speaks on the opening day of the Investing i ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa\" \/>\n<meta property=\"og:site_name\" content=\"Gambia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-17T10:52:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-17T10:58:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/gambia\/sites\/19\/2024\/05\/sm_1715930805.656532.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/gambia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"The Cost of the Gulf\u2019s Booming Business in Africa\",\"datePublished\":\"2024-05-17T10:52:00+00:00\",\"dateModified\":\"2024-05-17T10:58:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa\"},\"wordCount\":960,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/gambia\/sites\/19\/2024\/05\/sm_1715930805.656532.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Gambia\",\"Gambia\"],\"articleSection\":[\"all news\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa\",\"url\":\"https:\/\/www.africa-press.net\/gambia\/all-news\/the-cost-of-the-gulfs-booming-business-in-africa\",\"name\":\"The Cost of the Gulf\u2019s Booming Business in Africa - 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