Africa risks losing investment billions from Gulf states due to Middle East conflict

Gulf nations could review their overseas investments and future commitments to ease financial pressure caused by the Middle East conflict, reports the Financial Times.

This could deal a blow to many African countries that have to come to rely increasingly on major capital pledges from the region.

With Iran's retaliation for attacks by the US and Israel which started on 28 February, Gulf airspace has been largely closed, and oil production and supply disrupted.

In recent days, a new wave of Iranian missiles and drones has targeted the region. On Monday, Bahrain’s state oil company declared force majeure for its shipments after Iranian strikes hit its energy installations.

RELATED: Iran vows to fight on and block all Gulf oil

Gulf countries, especially the UAE, Saudi Arabia, and Qatar, have collectively invested over $100 billion in Africa over the past decade, funding critical sectors like energy, infrastructure, and technology.

The UAE has invested an estimated $59 billion over the last ten years, says Africa specialist Rutendo Hwindingwi, with Saudi Arabia at around $26 billion and Qatar $7 billion.

"When it comes to large infrastructure projects, these Gulf states have taken the lead now over China and Europe with regards to year-on-year growth and Africa will see ramifications from this war."

"African countries need to prepare for the shock - it might be short term, it might be long term, but ultimately a war has consequences and in a war of this nature where you find big players like the US and Israel involved, it's going to have a significant impact so from a strategy perspective Africa has to look at this and say, how do we adapt accordingly."

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