The first G20 Summit hosted on African soil delivered significant dividends for the continent, with the United Arab Emirates (UAE) pledging $1bn (about R18.85bn) for “AI for development” to complement its growing investment footprint. Economic relations between SA and the UAE are already reaching new heights, strengthening SA’s diversification efforts. With SA facing continued strained relations with the US and an impending EU carbon tax, it would be prudent for the country to seek trade partners in Asia.
While China has been expanding its influence, already accounting for 12% of trade, the Middle East holds immense growth potential. UAE government data shows SA is the UAE’s second-largest trading partner in Africa, accounting for nearly 8% of the UAE’s non-oil trade. Within the Gulf Cooperation Council, the UAE is one of SA’s key import partners, holding a 38% share of the region’s trade.
While Dubai has been a growing tourist destination for many South Africans, the country has also opened up many job opportunities for those seeking employment overseas. Bilateral trade between SA and the UAE exceeds $6.5bn, with renewable energy, agriculture and fintech driving mutually beneficial growth. These figures reflect a broader trend of deepening trade relations and SA’s new venture to the East.
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Bilateral trade grew by 45% between 2020 and 2023, which signals a mutual commitment to strengthening economic ties amid a volatile geopolitical environment. The UAE has recently positioned itself beyond just being a tourist destination — a trade shift SA can learn from as it develops its economy. While growth started in the oil sector, the UAE has advanced beyond a commodity-dependent economy, which is a pathway SA is seeking as it makes efforts to beneficiate minerals at the point of extraction.
As SA faces 30% unilateral tariffs and strained relations with the US, access to an open and expanding UAE market is expected to support job creation and infrastructure development. In 2023, SA imported goods worth $4bn from the UAE, while exports to the UAE totalled $2.53bn. Investment flows are also accelerating.
UAE investments in SA exceeded $1.3bn in 2024, while South African foreign direct investment into the UAE surpassed $600m over the same period. This points to deeper integration between the two countries’ business environments.
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