UAE looks to secure investment deals in Uganda for economic growth

Post by: Raman Preet

The United Arab Emirates (UAE) is looking to create new business opportunities in Uganda. At least 20 companies based in Dubai are eager to invest in several sectors, including manufacturing, real estate, healthcare, technology, oil and gas, textiles, and agriculture. This move comes despite concerns about the challenges in Uganda’s logistics system.

In recent years, there has been a growing flow of cheap labor from Uganda to the UAE and other Gulf countries. Many Ugandans are interested in working in Dubai, attracted by the promise of better job opportunities. However, there have been reports of Ugandan workers being mistreated by employers and facing detention in Dubai for visa issues. These incidents have raised concerns about the working conditions for migrant workers from Uganda.

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Despite these challenges, the UAE is focused on increasing foreign direct investment (FDI) in Uganda. FDI from the UAE into Uganda has been rising, especially after the Covid-19 pandemic. Bilateral trade between the two countries is also growing, with more imports from Dubai to Uganda. In 2023, the UAE received a total of $10.7 billion in FDI, and by the first half of 2024, it had already reached $5.9 billion, according to Dubai Chambers, the UAE’s official business organization.

Some of the main items Uganda imports from the UAE include industrial machinery, motor vehicles, and electronics like smartphones. On the other hand, Uganda’s key exports to the UAE are gold, coffee, and fresh fruits.

Muhammad Rashed Lootah, the president of Dubai Chambers, expressed excitement about doing business in Uganda and East Africa, saying that there are fewer barriers to investment in Uganda.

While the Ugandan government has made efforts to improve infrastructure by investing heavily in road construction and repairs, Uganda still faces challenges in providing good railway and water transport systems. This affects the competitiveness of its logistics system. However, experts note that Uganda’s ability to transport goods has improved because of the growing demands of the oil and gas industry.

There are currently 148 Ugandan businesses registered with Dubai Chambers, showing a growing connection between entrepreneurs in Uganda and the UAE. This highlights the increasing commercial ties between the two countries.

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