Hello I wanted to know why Arabs are not interested to make business in Africa?

Many Arab investors are keen to invest in African countries that provide attractive returns of investments...

An economic boom in the Middle East countries has resulted in Arab investors spreading their investments to north and sub- Saharan Africa in search of the high returns that are becoming harder to find in saturated western markets. With banks and financial institutions in the Arabian Gulf overflowing with liquidity, Middle investors are keen to expand their investments into new markets. Consequently, there have been many joint ventures, mergers, acquisitions and reverse takeovers in Africa that are backed by capital surpluses and local and international loans secured by land holdings in the Gulf. “Many of these companies are generating very high cash returns,” says Walid Shiabi, head researcher at the Dubai-based Shuaa Capital. “And in a lot of cases, they are beginning to outgrow their own markets and are looking elsewhere to expand.” The rapid growth of Middle Eastern economies has provided investors an opportunity to reduce their exposure to domestic markets by expanding into the African markets and beyond. Many deals in the African property and telecoms sectors have dominated the news in recent years. However, there has also been substantial expansion into other sectors in African countries like hotels, supermarket chains, airlines, transport logistics and commercial and investment banks.

Thanks. I'm a novice in the field to answer your question friend. Anyway its learning for me too. Thanks.

I fully agree with the answers been added by EXPERTS................Thanks.

who said that more business there

 

Thanks for the invite. Well for many reasons Arab investors interest tend to be in North Africa. The main reason is that there is no language barrier and incentives and policies as well as agreements signed by their governments. Other reason is that many African countries investment policies are not attractive for Arab investors due to the fact that their are limitations for the amount of Hard Currency they can use and take out when necessary. Though other African countries and those you mentioned are rich in resources with abundant expertise.

Because it's dificault to run a business in Africa (Biraucracy & Corruption are everyhere)

Yes sure but most arabic investors making their investment in Egypt, Tunisia, lybia, Algeria and morocco why not in Cameroon, ivory coast, Congo etc who are more rich but nobody care

I agree with the answer given by Hisham Hashim   Business Development Manager.