Africa Witnesses Steady Surge in FDI Driven by Gulf Investors and Improved Business Climate, Say UNCTAD and IMF
The African continent is experiencing a steady rise in Foreign Direct Investment (FDI) inflows, with expectations that these investments will continue on an upward trajectory, particularly fueled by Gulf nations, most notably the United Arab Emirates (UAE).
Data from the United Nations Conference on Trade and Development (UNCTAD) and the International Monetary Fund (IMF) indicate that foreign investors have steadily increased their footprint in Africa over recent years. These increases are projected to persist amid the growth of global capital available for FDI and as African governments take concrete steps to make their countries more attractive to foreign capital.
"The growth of investment in Africa is a positive development, driven by several factors, including improvements African governments have made to the business environment, which have facilitated investment," François Conradie, Lead Political Economist at Oxford Economics Africa, told CNN Business Arabic.
FDI Volume into Africa
Africa attracted approximately $70 billion in FDI in 2025. Although this figure is lower than that recorded in 2024, it marks the third-highest level since 1990, according to the latest UNCTAD data.
Conradie pointed out that the 2024 figures were heavily inflated by Egypt's massive $35 billion Ras El Hekma deal. Therefore, when excluding such exceptional, one-off investments, the 2025 inflow remains a highly robust figure. Furthermore, UNCTAD notes that investors are continuously channeling funds into African sectors that are gaining critical importance in the global economy.
Sources of Investments into Africa
Historically, Africa has relied on investments from major Western economic powers such as the United States and Europe. Recently, however, China and Gulf countries have emerged as dominant sources of capital for the continent.
According to UNCTAD's report on FDI trends in 2026, investors from the Gulf and other Asian economies have become vital sources of funding for new greenfield projects. The primary sectors targeted by these investments include:
Energy
Logistics
Real Estate
Infrastructure
Conradie emphasized that China is currently among the largest investors in Africa, with Gulf nations following closely and growing their market share rapidly, driven specifically by the UAE.
Top Direct Investors in Africa (2024)
Based on IMF data compiled by CNN Business Arabic reflecting the latest available figures for 2024, the top countries investing directly in the African continent are:
RankInvesting Country
1United States
2United Kingdom
3India
4Netherlands
5United Arab Emirates (UAE)