UAE–Uganda Partnership Deepens as Trade Hits US$2.85 Billion
Kampala/Abu Dhabi, 29 October 2025 – The economic ties between the United Arab Emirates (UAE) and the Republic of Uganda have reached a landmark milestone, with bilateral trade volumes soaring to approximately US$ 2.85 billion as of September 2025.
This surge has been matched by a significant uptick in UAE foreign direct investment (FDI) into Uganda — rising from roughly US$ 300 million in 2018 to about US$ 3.5 billion in 2024.
Key Drivers & Sectors
The growth in trade and investment is underpinned by a combination of strategic diplomacy, improved connectivity and targeted sectoral collaboration:
- Improved Connectivity: Enhanced air links between Uganda and the UAE — with six daily flights now operating between Entebbe and major UAE hubs — have helped reduce logistical barriers and facilitate trade and investment flows.
- Sector Focus: The upcoming fourth edition of the Uganda–UAE Business Forum (scheduled for 27-29 October 2025 in Kampala) will spotlight areas such as commercial agriculture, agro-industrialisation, energy & minerals, infrastructure, innovation, tourism, real-estate and manufacturing.
- Mutual Strategic Fit: For Uganda, the UAE offers capital, expertise and a key export destination; for the UAE, Uganda offers growth markets, agribusiness potential (given Uganda’s arable land), and gateway access into East and Central Africa.
Why It Matters
- Economic Diversification: The UAE’s investment into Uganda supports its strategy of diversifying away from hydrocarbons into sectors like agriculture, food security, logistics and infrastructure.
- Regional Gateway: Uganda provides UAE investors access to a regional market of over 600 million consumers in East and Central Africa; it also brings supply-chain opportunities in agro-processing, minerals and power.
- Trade Momentum: With the UAE becoming Uganda’s leading export destination globally, the trade pattern is evolving from commodity-exports towards higher value services, investment flows and joint ventures.
Challenges & Considerations
While the momentum is strong, several factors will influence how far the partnership can go:
- Implementation Risk: Commitments and MoUs are important, but translating them into on-the-ground projects (factories, farms, logistics hubs, power plants) will require regulatory alignment, infrastructure readiness and coordination.
- Sectoral Complexity: Many target sectors (e.g., energy, minerals) involve long-horizon projects, large capital, and geopolitical/regulatory complexity — which may slow rollout.
- Sustainability & Localisation: To ensure long-term benefit, investment must be inclusive of local supply chains, job creation, and technology transfer rather than purely capital-import driven.
Outlook
With the Uganda–UAE Business Forum upcoming, both countries are signalling that the current phases of momentum will evolve into deeper, structured partnership frameworks rather than one-off transactions. For UAE companies considering investment in Uganda, this means opportunities in agribusiness, manufacturing for export, infrastructure (including energy and logistics) and innovation are increasingly accessible. Ugandan firms and policy-makers, meanwhile, have a clear partner in the UAE for capital, know-how and market access — provided the enabling environment continues to improve.
If these elements align, bilateral trade could exceed US$ 3 billion in the near term, and FDI flows into tens of billions of dollars over the coming years, helping to diversify both economies and deepen regional ties in the Gulf-Africa corridor.
