Published by Strasburg Policy Centre
In partnership with Coventry University, Erasmus University Rotterdam, and Alber & Geiger
In recent years, the United Arab Emirates (UAE) has emerged as a dominant financial player in Africa, investing billions across various sectors. While these investments have fueled economic growth, they have also raised serious concerns about corruption, illicit financial flows, and political influence. This report, authored by Dimitrios Kafteranis, Mercy Mutana, Edison Mehqemeja, and Alexandros Sarris, critically examines the UAE’s expanding footprint in Africa, exposing the deep-rooted links between its financial activities and systemic corruption across the continent.
The UAE’s engagement with African states is often preferred over Western financial aid, as it comes with fewer political conditions. Unlike Europe and the U.S., which emphasize democracy, human rights, and financial transparency, the Gulf states—particularly the UAE—offer economic partnerships that prioritize mutual financial and strategic interests. This has created a “safe haven” for African elites seeking to protect their assets away from scrutiny.
Key findings of this report highlight:
• Financial Secrecy & Illicit Flows: Dubai’s financial sector has facilitated the laundering of illicit wealth from Africa, as exposed in global investigations like the Pandora Papers and Dubai Uncovered. Weak regulations and opacity in banking and real estate have enabled politically exposed persons (PEPs) to hide ill-gotten gains.
• The Gold Trade & Smuggling: The UAE’s role in gold trade misreporting and smuggling has intensified corruption, particularly in East and West Africa. Cases such as the Kaloti Precious Metals scandal illustrate how the UAE benefits from unregulated African gold exports.
• Military & Political Influence: The UAE has strategically positioned itself in African geopolitics, funding paramilitary groups like the Rapid Support Forces in Sudan and maintaining military bases in Somaliland and Eritrea. This militarization fuels regional instability while securing UAE economic and trade interests.
• Corrupt Business Practices: The UAE has leveraged double taxation agreements (DTAs) with African states to engage in treaty shopping and financial manipulation, benefiting from weak governance structures to evade taxes and regulatory scrutiny.
• Real Estate & Money Laundering: UAE’s luxury real estate market has become a key tool for African elites to launder illicit funds. Investigations reveal nearly 800 Dubai properties linked to Nigerian PEPs alone, showcasing the scale of this issue.
While the UAE has taken steps to enhance its anti-corruption framework, the evidence suggests these reforms remain largely superficial. The country continues to provide a sanctuary for corrupt African leaders and business elites, exacerbating economic inequality and undermining governance in affected states.
This report calls for urgent international action, including greater financial transparency, stricter regulations on offshore investments, and more robust enforcement against illicit financial flows. Without meaningful reforms, the UAE will remain a central enabler of corruption in Africa, deepening the continent’s governance and development challenges.
