Bernard Busuulwa
The UAE is focusing on increasing foreign direct investment and bilateral trade with Uganda
The United Arab Emirates (UAE) is pursuing new business opportunities in Uganda, with at least 20 Dubai-based companies seeking investment deals in manufacturing, real estate, healthcare, technology, oil and gas, textiles and agricultural sectors, despite concerns about the competitiveness of Uganda’s logistics value chain.
This contrasts with the significant outflows of cheap Ugandan labour destined for the UAE and other Gulf states, increased imports from Dubai and a strong tourism interest shown by Ugandans towards Dubai City.
Despite promises of well-paying jobs and good working conditions from labour export companies, frequent reports of Ugandan migrant workers being mistreated by employers and detained in Dubai prisons for visa violations have tarnished the employment opportunities offered by the Middle East.
The UAE’s investment agenda is focused on increasing foreign direct investment (FDI) flows seen after the Covid-19 lockdown and the rising bilateral trade between Uganda and the Gulf state.
Total FDI inflows into the UAE stood at $10.7 billion in 2023 but, in the first six months of 2024, the inflows totalled $5.9 billion, according to data compiled by Dubai Chambers, the UAE’s official business umbrella body.
Popular import items from the UAE in Uganda include industrial machinery, motor vehicles and electronics, particularly smartphones. Leading Ugandan exports to the UAE include gold, coffee and fresh fruits according to official data.“There are fewer barriers to investment in Uganda and we are excited about doing business in Uganda and East Africa,” said Muhammad Rashed Lootah, president and chief of Dubai Chambers.
While the government has heavily invested in road construction and rehabilitation, access to quality railway and water transport remains low, affecting the competitiveness ratings of the logistics value chains. But experts say Uganda’s cargo transport capacity has improved due to the logistics demands of the oil and gas industry.
About 148 Ugandan businesses are registered with the Dubai Chambers, indicating growing commercial ties between the UAE and local entrepreneurs.
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