Middle Eastern countries have either expressed interest in or finalized deals worth over $6 billion in African energy assets in recent weeks, highlighting the region’s growing strategic focus on the continent’s energy sector.
One of the most prominent players is Abu Dhabi National Oil Company (Adnoc), which has reportedly been shortlisted to acquire Shell Plc’s downstream assets in South Africa, valued at approximately $1 billion, according to sources familiar with the matter.
Adnoc and other UAE-based firms are rapidly expanding their presence across Africa’s energy landscape—from renewable energy projects to oil and gas fields—according to Bloomberg.
This investment wave coincides with a sharp rise in trade between the UAE and Africa, which jumped 38% to reach $86 billion over the two years through 2023, as reported by the African Export-Import Bank.
Gulf countries are increasingly acquiring overseas assets to diversify their energy portfolios and mitigate exposure to domestic market volatility and geopolitical risks.
In Uganda, Dubai-based Alpha MBM Investments LLC, led by a member of the emirate’s royal family, has agreed to develop a $4 billion, 60,000-barrel-per-day oil refinery.
Alpha MBM will hold a 60% stake in the project, marking the latest attempt to commercialize Uganda’s landlocked crude reserves after several stalled initiatives.
Meanwhile, Kenya has extended its fuel import agreement for another two years with Adnoc, Saudi Aramco, and Emirates National Oil Co.—a deal credited with helping stabilize the Kenyan shilling.
Some of the imported fuel is also re-exported to neighboring countries such as South Sudan, the Democratic Republic of Congo, and Burundi.
Saudi Arabia has also deepened its engagement in South Africa through a series of high-level visits and multibillion-dollar deals.
Companies like ACWA Power and Red Sea Gateway Terminal—both backed by the kingdom’s $925 billion Public Investment Fund—are actively pursuing investments in South Africa’s renewable energy infrastructure.
With a 44% stake in ACWA Power, Saudi Arabia has become the largest foreign investor in South Africa’s renewable energy sector, according to Standard Bank Group, solidifying its position as a key player in Africa’s green energy transition.
