The UAE has joined with Kenya to boost investments in the mining and technology sectors as the Emirates looks to diversify its global investment portfolio.
Abu Dhabi-based company ADQ has also signed a finance framework agreement with Kenya to enable investments in priority sectors of its economy, the UAE's Ministry of Investment said on Wednesday.
That could mean investment of up to $500 million, the ministry said.
Kenya is one of the dominant economies in East Africa, contributing more than 40 per cent of the region’s gross domestic product.
Its real gross domestic product growth rose to an estimated 5 per cent in 2023, from 4.8 per cent in 2022.
The African economy is projected to achieve growth that is between 4.5 per cent and 5.2 per cent in 2024, official figures show.
Kenya’s mining sector offers significant growth potential with its abundant reserves of gold, copper, ilmenite, tantalum and various non-metallic minerals.
The latest agreement, signed between UAE’s Ministry of Investment and Kenya’s Ministry of Finance and National Treasury, focuses on mineral exploration, processing and marketing, and mine development.
One of the key objectives is to explore opportunities for technology transfer in Kenya’s mineral sector to support more innovation and growth.
The agreement marks a “new chapter” in the shared economic journey of the UAE and Kenya, said Mohamed Alsuwaidi, the Minister of Investment.
“We are laying down the foundation for a future where sustainable mining practices, innovation, and responsible stewardship form the pillars of our mutual growth," Mr Alsuwaidi said.
“We are committed to leveraging technology to enhance capacities and establish robust governance practices that will not only propel the mineral sector, but also ensure overall prosperity of our nations."
In 2023, the UAE and Kenya's non-oil trade rose 26.4 per cent year on year to $3.1 billion, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in February.
The recent deals are signed after a bilateral investment co-operation agreement signed last month to advance Kenya’s digital infrastructure.
In February, the UAE and Kenya also concluded negotiations for a comprehensive economic partnership agreement.
