UAE-Kenya deals: ADQ to establish investment framework
The UAE’s Ministry of Investment and the Ministry of Finance and National Treasury of Kenya inked a memorandum of understanding (MoU) on Wednesday, April 24, reported state news agency WAM.
The signings aim to usher in a new era of investment cooperation between the two countries.
The agreements pave the way for collaborative ventures in the growing mining and technology sectors.
The MoU emphasised:
- Exploration, development, and processing of minerals.
- Promotion of responsible mining practices with a focus on environmental and social governance.
- Technology transfer to bolster innovation in Kenya’s mining sector.
This agreement follows a bilateral investment cooperation through Abu Dhabi-based ADQ, aimed at enhancing Kenya’s digital infrastructure sector, underscoring the commitment to broad-based economic collaboration.
The Abu Dhabi-based investment conglomerate agreed to establish a finance and investment framework in Kenya to explore intended investments of up to $500m in priority sectors of the Kenyan economy.
Mohamed Hassan Alsuwaidi, managing director and CEO of ADQ, , highlighted the UAE’s investment strategy aimed at unlocking Kenya’s economic potential.
He said, “This agreement not only strengthens the robust economic ties between the UAE and Kenya but also underscores ADQ’s commitment to developing partnerships in key markets that complement our investment strategy, allowing other nations to benefit from the considerable and diverse expertise within our portfolio.”
“We are confident that our investment will bring forth notable opportunities that will unlock tangible value and contribute to the economic growth of Kenya and the broader East African region, harnessing its vast potential for development.”
Highlights of UAE-Kenya talks:
- Investment collaboration: The MoU signifies a strategic alignment between the UAE and Kenya in fostering investment ties, particularly in mining and technology domains.
- ADQ’s Finance Framework Agreement: ADQ has also entered into a finance framework agreement with Kenya, facilitating potential investments of up to $500m in key sectors.
- Potential in Kenya’s mining sector: Kenya’s rich mineral reserves, including gold, copper, and tantalum, offer significant growth opportunities. Strengthening the mining industry can catalyse economic growth, create jobs, and position Kenya as a leading player in African mining.
- “Silicon Savannah”: Kenya’s robust digital ecosystem, dubbed the “Silicon Savannah,” underscores its status as East Africa’s economic powerhouse, contributing over 40 percent to the region’s GDP.
The UAE-Kenya bilateral agreements are poised to deepen economic ties and unlock new opportunities for growth and development.
Kenya is among East Africa’s most dynamic economies and was one of the first African countries with which the UAE initiated bilateral trade deal talks in 2022.
In 2023, non-oil trade between the UAE and Kenya rose by 26.4 percent year-on-year to $3.1bn.
