Gulf Cooperation Council (GCC) countries, particularly the UAE, Saudi Arabia and Qatar, are transitioning from fossil fuel exporters to strategic investors in Africa’s clean energy future. As China scales back its role as Africa’s leading financial institution, Gulf sovereign wealth funds and private investors are accelerating their presence across the continent. According to Afreximbank’s December 2024 report, GCC countries invested more than $100 billion in Africa from 2012 to 2022, with the UAE leading the way with $59.4 billion, followed by Saudi Arabia with $25.6 billion and Qatar with $7.2 billion. These investments are reshaping Africa’s energy partnership, fusing economic ambition with geopolitical influence.
Oil and gas: growing regional influence and security
Gulf investments in Africa’s oil and gas sector emphasize a strategic focus on energy security, export routes and industrial integration. The UAE has committed to co-financing the $25 billion Morocco-Nigeria offshore gas pipeline. This pipeline is a huge project with a total length of 6,800 km, which aims to transport 30 billion to 40 billion cubic meters of natural gas annually across 15 countries in West Africa and further on to Europe. The project, supported by the United Arab Emirates (UAE) in collaboration with the Islamic Development Bank and the OPEC Fund, aims to strengthen regional energy security and economic integration. Construction will begin in stages from 2025, with first deliveries expected by 2029.
Meanwhile, Qatar Energy acquired a 27.5% stake in Block 2813B at the end of 2024 to deepen its upstream operations in Namibia’s Orange Basin and complement its existing 35.25% interest in adjacent Block 2913B. The company is working with Shell and NAMCOR to advance post-well analysis to optimize the development strategy and identify further prospects. These moves reflect Qatar’s broader strategy to strengthen its position in the promising frontier basin, while supporting Namibia’s ambitions to become a regional hydrocarbon hub.
Clean energy: Driving Africa’s energy transition
In parallel, GCC countries are positioning themselves at the forefront of building clean energy in Africa, supporting the continent’s energy transition while securing long-term export opportunities for hydrogen, ammonia and green power.
The UAE’s Masdar is working with Egypt’s Infinity Power and Germany’s Conjunta to develop a 10GW green hydrogen project northeast of Nouakchott, Mauritania. Following the completion of an initial feasibility study, a second phase of infrastructure planning is underway, targeting an electrolyzer capacity of 400 MW by 2028. Once fully operational, it will produce up to 8 million tonnes of green hydrogen and its derivatives, including ammonia, annually for export markets. The project will create 3,000 construction jobs and 1,000 permanent jobs, supporting Mauritania’s clean energy ambitions.
In Tunisia, UAE-based AMEA Power began construction of the 120MW Kairouan Solar Park in May 2024. With support from IFC and the African Development Bank, the $86 million project is scheduled to be operational in late 2025 and will generate 222 GWh per year. This is enough to power 43,000 homes and reduce CO₂ emissions by 117,000 tons. The project demonstrates the growing interest of Gulf investors in North Africa’s renewable energy sector and supports Tunisia’s efforts to diversify its energy mix and reduce its dependence on imported fuels.
In Egypt, Saudi Arabia’s ACWA Power is leading a $2.3 billion 2GW wind farm, which will be the country’s largest when completed in 2026. Under a 25-year PPA, the wind farm will provide clean electricity and reduce CO₂ emissions by 3.5 million tons per year, helping Egypt reach its 2030 goal of 42% renewable energy.
Through hydrocarbons and renewable energy, GCC investors are becoming central to Africa’s energy future. Our combined efforts in oil and gas and clean energy will not only address Africa’s immediate energy needs, but also position the Gulf states as long-term partners in the continent’s industrial and economic development.
