Dubai looks to Africa with $4 billion investment

Robert Hamilton
For Al-Shorfa.com
2008-06-26

The African Union

Government-owned holding company Dubai World has committed over $4 billion [USD] to a series of projects in Africa. The developments include tourist resorts and ports in countries such as Djibouti, Senegal, Rwanda and South Africa.

The holding company, which includes investment entities such as DP World, Nakheel and Istithmar has been particularly keen on tourism projects to benefit from Africa's unique natural heritage.

"We have invested significantly in game parks and reserves throughout Africa and see a bright future for these destinations," Dubai World chairman Sultan Ahmad Bin Sulayem said in a statement at the World Economic Forum on Africa in Cape Town.

Bin Sulayem added that Dubai World sought "long-term partnerships" with African states in areas such as ports, business parks and logistics centres, roads and rail networks.

"When combined with investment in education and training in people, it creates wealth and economic stability on which to build a sustainable future," he said, adding that strong infrastructure and investment in human resources would lead to further developments in the real estate, retail, and tourism sectors.

Bin Sulayem added that he saw an important role for eco-tourism in Africa. "Africa has an abundance of natural beauty and the opportunity to provide a unique experience for travellers in a way that is sustainable and ecologically sound," he said.

DP World operates four marine terminals and is building two new ports on the continent, and free zone operator Jafza International has interests in five facilities and projects.

"Dubai World has committed investments of around $4 billion in several strategic sectors through its subsidiary companies," the company statement noted.

Dubai World Africa owns and operates tourism resorts, game reserves and luxury hotels across Africa, including the V&A Waterfront in Cape Town and Gorilla's Nest Lodge in Rwanda. It has also signed an agreement to build a five-star hotel and beach resort on Gorée Island, as well as a bird sanctuary and reserve north of Dakar and another game reserve close to the Senegalese capital.

A simple rejection by Iran of this information as not authentic, forged or fabricated is neither credible nor acceptable, given the quality and quantity of the documents presented by the agency to Iran," the current EU chairman said in a statement. Slovenian envoy Bojan Bertoncelj also said that the EU was alarmed that Iran was nearing the launch of its first Russian-built nuclear power plant at Bushehr without belonging to the Convention on Nuclear Safety.

In April, Dubai World said it had expressed interest in managing and developing a port in the Mauritanian capital and said it saw "great potential" for a free zone in the country. Chairman Sultan Ahmed bin Sulayem also discussed investment opportunities in minerals, mining and power generation with Mauritanian President Sidi Mohamed Ould Cheikh Abdallahi.

In May 2008 Bin Sulayem was in China to review the holding company's various projects in Asia and to study the possibilities of new investments. The visit underlined the strategic plans Dubai World has made through its subsidiary companies, such as Limitless, to make use of China's ever-growing economic potential and investment possibilities. Non-oil trade between Dubai and China soared to a 47 per cent high in 2007, according to figures released by Dubai World's Statistics Department.

The figures showed that the total trade value increased from $13.18 billion in 2006 to $19.4 billion in 2007. The department study also noted that China came second on the list of Dubai's top trading partners in 2007 for the third consecutive year.

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