UAE-Saudi Rivalry Reshapes African Trade and Port Investments

Competition between the UAE and Saudi Arabia impacts African gold exports and strategic port hubs along the Red Sea corridor as geopolitical rifts spill into trade.

By: AXL Media

Published: Feb 17, 2026, 8:50 AM EST

Source: Information for this report was sourced from Business Insider Africa

The Economic Exposure of Sudan's Gold Trade

Sudan has emerged as a primary example of a nation deeply exposed to these shifting Gulf dynamics. In 2024, the country exported $1.97 billion worth of gold to the UAE, with over 10 tonnes valued at $1.05 billion shipped to Dubai in the first nine months alone. This dominance in the bullion trade reinforces the UAE's role as a critical financial partner for Khartoum. However, as the internal conflict in Sudan persists, the government has sought to diversify its export partnerships to counterbalance this economic dependence.

Strategic Port Competition and Maritime Gateways

The competition for control over strategic maritime assets has intensified, with the UAE holding significant stakes in ports such as Berbera and Bosaso. These facilities serve as vital trade gateways linking the Red Sea to inland East African markets. In response to Emirati dominance, Saudi-backed entities have accelerated investments in alternative port projects as African governments attempt to avoid overdependence on a single partner. This maritime "arms race" for logistics hubs is directly impacting regional supply chains and customs revenues for nations like Djibouti and Ethiopia.

Shifting Diplomatic Alignments and Regional Rifts

Geopolitical rifts have led to visible divisions among African states, with some nations choosing to sever ties or shift alignments. Somalia previously severed diplomatic relations with the UAE over allegations of interference and port agreements that Mogadishu viewed as undermining its sovereignty. Within the Horn of Africa, Ethiopia has maintained close ties with the UAE, while Eritrea has strengthened its engagement with Saudi Arabia. These diverging paths underscore how foreign policy and economic ties with Gulf states have direct implications for domestic stability and regional cooperation.