Rising tensions between the United States and Iran could force Gulf states to reconsider major overseas investments, potentially affecting billions of dollars pledged to African economies.
Gulf officials are privately assessing whether the financial impact of a prolonged regional conflict could lead to a review of foreign investment commitments, the Financial Times reported, citing a senior Gulf official familiar with the discussions.
The confrontation has increased security risks across the Middle East as Iran targets military bases and strategic facilities, raising fears of broader disruptions.
Gulf economies rely heavily on energy exports, logistics and tourism, and analysts say governments may prioritize domestic economic stability and defense spending if tensions escalate.
Such a shift could affect Africa, which has received more than $100 billion in investments from Gulf Cooperation Council countries over the past decade.
The United Arab Emirates leads with about $59.4 billion invested, followed by Saudi Arabia with $25.6 billion and Qatar with about $7.2 billion.
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According to Business Insider Africa, Qatar pledged $103 billion in investments across Africa in 2025, including $21 billion for the Democratic Republic of Congo and $20 billion for Mozambique, largely tied to liquefied natural gas development.
The UAE has mobilized $4.5 billion for more than 60 renewable energy projects through its Africa Green Investment Initiative, pledged $500 million in humanitarian aid to Sudan in February 2026, and launched a $1 billion “AI for Development” initiative at the G20 summit in November 2025 to support digital infrastructure in emerging markets, including Africa.
Saudi Arabia also announced in February 2026 plans to increase its investments in Africa to more than $25 billion by 2030, focusing on digital infrastructure, artificial intelligence and possible subsea connectivity linking Africa to the kingdom’s western coast.
Analysts warn that if geopolitical tensions intensify, overseas investments could face delays or closer review.
This could affect African economies that rely on Gulf capital for infrastructure and development projects, while disruptions to shipping routes such as the Strait of Hormuz and the importance of remittances from African workers in Gulf countries add further economic risks.
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Image Credit: Bloomberg
