The Arab nations have been urged by the African Union (AU) to redouble their trade and investment pledges throughout the continent.
This appeal is in line with the Nigerian government’s continuous initiatives to draw in foreign capital from Saudi Arabia and the United Arab Emirates (UAE).
This request was made by Mr. Moussa Faki, the Chairperson of the African Union Commission, during the 33rd Arab Summit in Bahrain, which came to an end on May 16, 2024.
AU Looks for Arab Capital
The meeting underscored the significance of fortifying economic connections between Africa and the Arab world, drawing together prominent players from many Arabian nations.
During his speech, Mr. Faki emphasised the important role that Arab nations can play in realising the shared goals and objectives of both the Arab and African areas and in furthering cooperative Arab-African efforts.
The Africa-Arab partnership was initially approved in 1977 to provide a framework for economic cooperation between the two areas. He focused on the relationship’s historical background. The Arab League now consists of nine African nations, including Egypt and Morocco.
In order to accelerate its development, Africa is currently looking for additional economic prospects, which is why Mr. Faki is calling for more Arab investment.
According to a World Bank assessment, the Middle East and North Africa (MENA) regions possess over 60% of the world’s confirmed oil reserves, making them among of the richest places in the world in terms of natural resources. The research also states that around 85% of the goods exported from the Arabian Peninsula are made up of oil.
The chairperson of the African Union expressed gratitude for the work done over the past 50 years to assist development throughout Africa by a number of financial institutions, such as the Islamic Development Bank, the Arab African Development Bank, and the Arab Finance and Development Funds. These partnerships have made a substantial contribution to the continent’s advancement in a number of areas.
Mr. Faki noted that despite these initiatives, the amount of Arab investment in Africa does not accurately reflect the depth and potential of the relationship between the two continents.
He emphasised that in order to achieve more significant and lasting development benefits, Arab nations must increase their economic investments in Africa.
He said,
“Africa wants to revive this alliance for the benefit of the peoples and nations in both areas, as I have stated time and time again. I have often expressed without reservation that our current cooperation does not compare to those prior relationships and their diverse aspects.”
“To prevent imbalance and strengthen our partnership around our shared priorities in trade, investment, infrastructure, economic integration, environment, food sufficiency, and modern technologies, as well as to foster solidarity in international forums around our shared issues and concerns, we all need to be more cohesive.”
Global strategic relations
At the conference, the League of Arab States accepted the Bahrain Declaration, which was read aloud by Bahrain’s King, Hamad bin Isa Al Khalifa.
Arab governments committed to strategic economic partnerships with Africa on a global scale, as evidenced by the proclamation.
In order to meet the aspirations of our Arab peoples and achieve growth and prosperity, the declaration partially states, “Recognising the strategic importance of the Arab nation at the global level, its economic potential and human resources, and the need to create conditions for enhanced cooperation, building economic partnerships and achieving comprehensive development based on common interests and mutual benefits.”
Additional details
According to the National Bureau of Statistics’ (NBS) third quarter 2023 Capital Importation report, Nigeria saw a significant drop in foreign investments—62.4%—from nations that President Bola Tinubu and Vice President Kashim Shettima visited.
- According to a quarterly review, capital inflow decreased by 62.4%, from $643.3 million in Q2 2023 to $242.09 million in Q3 2023.
- Compared to $116.8 million and $9.2 million in 2022, respectively, the UAE and Saudi Arabia recorded investments of $258 million and $0.43 million for the entire year of 2023.
- To increase the nation’s foreign exchange reserves, the Nigerian government has been luring foreign direct investments from Arab nations.
- The president gave a speech earlier this month to a group of prospective Saudi Arabian investors, reassuring them that their money would be secure in Nigeria.
