Kenya's Foreign Direct Investment (FDI) from Dubai Surges to Ksh 38 Billion

09 Nov, 2023

Kenya's Foreign Direct Investment (FDI) from Dubai Surges to Ksh 38 Billion

Kenya has witnessed a substantial influx of Foreign Direct Investments (FDIs) from Dubai, reaching $253 million (Sh38.3 billion) in the five years leading up to June 2023, as reported by the Financial Times' investment tracker, fDi Intelligence. This surge signals increased business activity in crucial sectors, including food processing, financial services, IT, and software.

Mohammad Ali Rashed Lootah, President, and CEO of Dubai Chambers, expressed optimism about the continued growth of FDI, citing the interest of more Gulf nation firms in Kenyan deals. He highlighted the positive impact of trade and investment, emphasizing that numerous Dubai-based companies are actively pursuing opportunities in Kenya.

During a trade meeting between Dubai and Kenyan firms, Mr. Lootah shared insights into ongoing discussions with Ken Trade (Kenya Trade Network Agency) and various business groups in Kenya. These interactions have identified numerous bankable investment opportunities, prompting the participation of 19 Dubai-based companies in business matching meetings in Kenya.

Mr. Lootah underscored Kenya's importance as a market and anticipated that these companies would capitalize on the opportunities presented. He noted a seven percent growth in the value of non-oil bilateral trade between Kenya and Dubai, reaching $2.1 billion (Sh318.28 billion) in the previous year.

Kenya has experienced substantial investment deals from Dubai in pivotal sectors, including financial services, telecoms, food and beverages, industrial equipment, transport and storage, and software and IT services. Notable examples include the Infrastructure Corporation of Africa LLC (ICA) acquiring 60 percent of Telkom Kenya shares and Dubai-based Pioneer General Insurance's bid to purchase Sidian Bank shares worth Sh1.9 billion.

Recent announcements by two Dubai firms further illustrate the growing interest in Kenya's market. Build Station, with a global presence, plans to establish a hub in Kenya, while Nutridor, a Dubai-based food and beverage company, is set to invest $15 million (Sh2.25 billion) in a new dairy processing plant targeting Kenya and Tanzania.

With customers spanning over 15 countries, including Gulf Corporation Council nations, Nutridor's expansion reflects the evolving landscape of economic collaboration between Kenya and Dubai.