Africa: Business potential for Middle East

The Dubai Chamber of Commerce and Industry announced findings of a recently commissioned research report conducted by the Economist Intelligence Unit (EIU) that highlight the significant potential Sub-Saharan Africa represents for companies in the Middle East.

The research findings have been released prior to the Africa Global Business Forum 2013, held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, on May 1st and 2nd.

Sub-Saharan Africa is now competing with Asia to become the world's fastest growing region. This growth is being driven by rising urbanisation, a young population and the emerging middle class. For certain countries, crucial economic reforms, combined with rising government spending and strengthening ties with fast-growing economies in Asia, will help drive future growth, the report claims.

H.E. Hamad Buamim, Director General, Dubai Chamber, said: "The Economist Intelligence Unit report highlights the growth potential of Africa for companies here in the Middle East. Africa offers the highest return on direct foreign investment in the world, according to the UN trade agency, UNCTAD.

"Therefore, the Dubai Chamber is extremely pleased to be organising the Africa Global Business Forum 2013, in partnership with COMESA Regional Investment Agency, where regional companies will hear from leading dignitaries both from Africa and the Middle East as to how to address the challenges of doing business in Africa in order to maximise the region's business growth potential."

Pratibha Thaker, Regional Director, Economist Intelligence Unit Middle East & Africa, said: "Business perceptions of Sub-Saharan Africa are changing. Structural changes over the past decade have brought more political stability and economic growth to the continent, despite some marked exceptions. A new business mentality and an increasing consensus on economic policy have both helped. Companies can see that not all emerging markets will grow rapidly forever, and that some markets that are still growing - like China - will slow and be overtaken by others - like India - in a few years. Africa is part of this picture. But, successful investment in Africa requires a complex view of the continent, given the diversity of markets, business environments, legal systems, social groups and political systems."

Findings of the EIU report confirm both the growth opportunities and associated challenges in key sectors of the sub-Saharan Africa region's economy:

? Agriculture: Africa's agriculture has the potential to become a global "bread basket" with over 60% of the world's uncultivated arable land located in the region. However, the sector remains troubled by some problems, notably underinvestment, a lack of clear policy, poor regulations, inefficient supply chains and inadequate fertilisation.

? Banking: The banking market is potentially vast and virtually untapped. Technology, such as mobile banking, is trying (and often succeeding) to fill the gap.

? Infrastructure: The scale of Africa's infrastructure needs is difficult to comprehend. For example, an estimated US$ 100 billion a year is needed for investmeMercurial Superfly CR7 High