Observer Research Foundation | Jul 26, 2024
UAE and Saudi Arabia’s agricultural diplomacy in Africa: Competition, cooperation and its strategic implications
Authors : Samir Bhattacharya | Ahmed Fawaz Lathif
A more open and dynamic regional economy in the Gulf will auger well for Africa as the UAE and Saudi Arabia intensify their efforts towards agricultural diplomacy in the continent
With scarce arable land and water resources, the United Arab Emirates (UAE) and Saudi Arabia depend heavily on food imports, as do other Gulf countries. The COVID-19 pandemic, the war in Ukraine war, and negative impacts of climate change exacerbated the challenge and exposed the vulnerability of their existing food supply chains. Indeed, the UAE and Saudi Arabia rely significantly on food imports—90 and 80 per cent, respectively. According to some estimates, by 2050, Saudi is projected to import all its food. Unsurprisingly, both countries are expanding their agricultural diplomacy to improve food access and readiness.
With 60 percent of the world’s uncultivated arable land, Africa has emerged as a potential ally in this regard. By investing in the continent’s immense agricultural potential, they hope to ensure long-term food imports, diversify their economies and spread their influence by projecting soft power.
Further, the UAE’s National Food Security Strategy 2051 seeks to lead the Global Food Security Index by promoting sustainable food production, innovative technologies, and international collaboration. Similarly, Saudi Arabia is reworking its food security strategy by allocating more financial resources to enhance agricultural practices, promote economic growth, and maintain stability. As Riyadh and Abu Dhabi are vying for agricultural cooperation with Africa, their interests would certainly overlap.
UAE: A pioneer in African agriculture
The UAE has been at the forefront of securing agricultural resources in Africa. According to a BMI analysis, the UAE has 14 land purchase transactions in the works, primarily in Africa, and 56 completed agreements, the earliest dating back more than 50 years to Sudan. Notable recent investments include a joint venture between Dubai Ventures and E20 Investment to build a large tract in Angola. Similarly, Al Dahra, an Emirati agricultural group, is projected to acquire or lease some lands in Egypt to grow essential grains. In Zimbabwe, a UAE-based firm named Global Carbon Investments secured conservation rights over a vast 7.5 million hectares representing 20 percent of the country’s landmass for US$ 1.5 billion. Additionally, in Ethiopia, EAP, a UAE agricultural company, is in discussions for a US$ 200 million wheat farm project.
Saudi Arabia: A rising challenger
Saudi Arabia’s effort to secure agricultural supplies in Africa is relatively new but equally ambitious. The Kingdom has recognised the crucial need to solve food and water scarcity challenges by making smart investments in Africa’s rich territories. One noteworthy development is a US$ 400 million joint investment by Saudi Arabia and UAE in Sudan’s agriculture sector. Saudi Arabia has also contributed US$ 3 billion to a joint investment fund to help Sudan’s economy flourish. This fund attempts to increase agricultural output and stimulate more investment.
Beyond Sudan, the Kingdom collaborated with Ghana to increase agricultural investment prospects. During a recent trip to Africa, Saudi Minister of Environment, Water, and Agriculture Eng. Abdulrahman Alfadley and Ghana’s Minister of Food and Agriculture, Dr. Bryan Acheampong, agreed to improve ties and enhance investment in agriculture, food security, fisheries, and livestock.
Saudi Arabia’s engagement in international forums strengthens its commitment to agricultural investments overseas. In fact, Minister Eng. Abdulrahman Alfadley’s Africa trip was centred on forging agreements to encourage investment and increase agricultural output. This journey includes stops in Senegal, Côte d’Ivoire, Nigeria, and Ghana, intending to implement the recent Saudi-Africa Summit results and strengthen connections between Saudi Arabia and these African countries.
UAE and Saudi Arabia in Africa: Competition over food trade infrastructure
Beyond agricultural investments, Saudi Arabia and the UAE compete on port facilities and logistics, which are critical in enabling food trade and broader economic impact. The UAE has established its leadership as a logistics and re-export hub through significant investments in ports and infrastructure in the Horn of Africa and the Red Sea area. Leveraging its strategic location and extensive network, the UAE has expanded its influence in Africa via DP World and AD Ports. This robust logistics framework allows the UAE to import food from Africa efficiently, reinforcing its food security.
In contrast, lacking such extensive port infrastructure, Saudi Arabia faces more significant logistical challenges in importing food from the continent. Saudi Arabia’s strategy involves investing in Red Sea littoral states and leveraging its relations with the UAE to ensure commercial connectivity. Unlike the UAE, Saudi Arabia has not yet developed its “ports champion,” relying instead on businesses like DP World. However, the Public Investment Fund (PIF) is actively establishing new major ports in the Kingdom and enhancing port capacity in Africa and the Middle East.
Competition, cooperation and strategic implications
The strategic implications of UAE and Saudi Arabian agricultural diplomacy in Africa are multifaceted, encompassing elements of both competition and cooperation. Both nations are driven by the imperative to secure food resources due to their limited domestic agricultural capabilities, leading to significant investments in African agriculture. With its proactive and technologically advanced approach, the UAE has established a firm foothold, leveraging extensive financial investments and innovative agricultural practices. Although newer to the field, Saudi Arabia is rapidly catching up with substantial investments and strategic partnerships. While these dynamics foster competition, particularly in securing land and resources, there are also opportunities for collaboration, especially in areas like technology transfer and regional stability.
Geopolitically, their activities in Africa are reshaping alliances and economic landscapes as both countries seek to enhance their influence through agricultural investments and infrastructure development. The competition for port facilities and logistics dominance further underscores the strategic stakes, with the UAE’s advanced logistics network giving it an edge. Saudi Arabia’s efforts to build port capacity signal a drive to close this gap.
Regionally, an intra-Gulf rivalry may be taking place as Saudi Arabia and the UAE are both working towards structural reforms aimed at economic diversification to reduce their reliance upon oil exports. As their visions push the two countries to compete in several strategic regions, including Africa, the rift between them is likely to increase.
Conclusion
The International Monetary Fund (IMF) estimates that the Gulf Cooperation Council’s (GCC’s) population will reach 57 million by 2025, drastically increasing its food requirements. With limited arable land, these countries are already relying heavily on imports. Climate change and geopolitical instability would exacerbate this reliance. Thus, protecting agricultural investments in fertile African areas remains a critical strategic priority.
With its historical political, economic, and security involvement in Africa, the UAE undertakes agricultural diplomacy to improve food security and expand its influence. However, Saudi Arabia’s resurgence as a leader in the Middle East and North Africa and its increasing intensification of agricultural diplomacy in Africa are making the possibility of their friction an imminent reality. However, this friction doesn’t have to be confrontational. If both countries can accept that this competition not as a zero-sum game, this will benefit both economies. And a more open and dynamic regional economy in the Gulf will auger well for Africa.
Samir Bhattacharya is an Associate Fellow with the Strategic Studies Programme at the Observer Research Foundation.
Ahmed Fawaz Lathif is a Research Intern at the Observer Research Foundation.