UAE Minister of Foreign Trade Dr Thani bin Ahmed Al Zeyoudi said the economic relationship between the two countries has proven resilient even as regional conflict and global supply chain disruptions create uncertainty for international markets.
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The United Arab Emirates (UAE) remains committed to expanding trade and investment ties with South Africa despite heightened tensions in the Middle East, with bilateral non-oil trade reaching $8.6 billion (around R141 billion) in 2025 and major investments continuing across logistics, renewable energy and infrastructure.
This comes as South Africa's economy is struggling to gain momentum on the back of unprecedented price of imported crude and refined oil due to the ongoing geopolitical tension between the United States and Iran.
In an exclusive interview with Business Report, UAE Minister of Foreign Trade Dr Thani bin Ahmed Al Zeyoudi said the economic relationship between the two countries has proven resilient even as regional conflict and global supply chain disruptions create uncertainty for international markets.
"The resilience of the UAE-South Africa economic relationship reflects a concerted effort from both sides to expand the scale and scope of collaboration," Al Zeyoudi said.
He noted that South Africa has become the UAE's second-largest trading partner in Africa, supported by growing commercial links and increasing institutional cooperation through initiatives such as the South African Business Group in the UAE and the expansion of Dubai Chamber operations in South Africa.
Addressing concerns that the ongoing conflict in the Middle East could derail planned investments, Al Zeyoudi said UAE-backed projects were structured to withstand geopolitical shocks.
"These projects, as with all our investments, are designed for mutual, long-term benefit – and to withstand short-term disruption. They are not conditioned on momentary geopolitical events," he said.
Al Zeyoudi expressed confidence in the outlook for UAE-Africa trade in 2026, citing significant investments in logistics infrastructure aimed at reducing supply chain vulnerabilities.
Among the key investments is DP World's acquisition of Imperial Logistics, which has created one of the largest logistics networks in sub-Saharan Africa. The company is also supporting regional expansion through a $365 million facility established with Standard Bank.
"We have invested substantially in supply-chain infrastructure to mitigate volatility," Al Zeyoudi said.
He added that the UAE-Africa Gateway initiative, launched in 2025, is encouraging greater private-sector investment across the continent and helping strengthen commercial ties between African economies and the Gulf region.
"Our outlook for 2026 remains positive," he said.
While South Africa recorded a 25.8% decline in imports from the UAE in 2025, resulting in a trade deficit, Al Zeyoudi rejected suggestions that the figures point to a structural imbalance in bilateral trade.
"It is important to view trade flows in context rather than through the lens of a single year," he said.
According to Al Zeyoudi, South Africa's exports to the UAE increased by 6.2% during 2025, reflecting strong demand for South African products including precious metals, diamonds, coal, vehicles and fresh produce. He said bilateral non-oil trade has more than doubled since 2019, reaching $8.6bn in 2025.
"Year-on-year fluctuations typically reflect shifts in commodity prices, exchange rates, and re-export patterns, not structural weakness," he said.
"We are focused on expanding cooperation in agriculture, manufacturing, and technology, which will naturally diversify and rebalance the relationship over time."
The UAE is also seeking to deepen its footprint in sectors that support South Africa's economic development objectives, particularly renewable energy and logistics.
Al Zeyoudi pointed to Infinity Power's acquisition of Lekela Power, which he described as "the largest renewable energy transaction in Africa's history", bringing more than 600MW of operational wind energy capacity to South Africa.
He also highlighted investments by AMEA Power, whose projects are helping address electricity shortages, as well as DP World's participation in Operation Vulindlela and its role as a major employer.
Responding to concerns that Gulf investment could be viewed as extractive rather than developmental, Al Zeyoudi said the relationship benefits both countries.
"The UAE offers access to 2.2 billion consumers across Asia and the Middle East; South Africa provides a gateway to the Southern African Development Community. Value flows in both directions," he said.
Investor appetite remains robust despite geopolitical uncertainty, according to Al Zeyoudi. AMEA Power has committed $120m to the Doornhoek Solar project, while battery storage developments are also being pursued.
"Our free-zone ecosystem and programs such as NextGenFDI provide investors with rapid incorporation, streamlined licensing, and access to banking and visa services," Al Zeyoudi said.
"These are the foundations upon which sustained investment is built, irrespective of short-term disruption."
BUSINESS REPORT