Uganda’s economic relationship with the United Arab Emirates (UAE) is entering a more mature phase, marked by rising foreign direct investment, stronger export performance and expanding commitments in manufacturing, officials and investors say.
Structured engagements such as the Uganda–UAE Business Forum have become central to this momentum, providing platforms for investors to assess opportunities, connect with partners and translate interest into capital inflows. These efforts are increasingly aligning diplomacy with commercial outcomes.
Foreign direct investment from the UAE into Uganda has grown sharply over the past seven years, rising from about US$300 million in 2018 to an estimated US$3.5 billion today, according to Ugandan officials. Uganda’s ambassador to the UAE, Zaake Wanume Kibedi, said the trajectory could steepen further once Uganda’s planned oil refinery becomes operational, with UAE-linked investments potentially reaching US$7 billion.
Trade ties have also strengthened. The UAE has emerged as Uganda’s leading export destination since September, with bilateral trade valued at around US$1.3 billion last year. Agriculture accounted for roughly half of those exports, reflecting Uganda’s comparative advantage in primary production. Kibedi said improvements in product quality, standards and consistency could significantly lift export volumes to the UAE market, which he described as a key gateway to the wider Middle East and Asia.
The expanding partnership fits into Uganda’s broader development agenda, including its ten-fold growth strategy, which prioritises agro-industrialisation, tourism, mineral development, and investment in science and technology. UAE diplomats and trade officials have described their country as a hub for capital, markets and technology, capable of supporting Uganda’s efforts to diversify exports and attract long-term, value-adding investment.
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A visible example of this deepening cooperation is the expansion of Metro Cement, a UAE-linked manufacturer that has steadily grown its footprint in Uganda’s construction materials sector. On December 18, the company pre-launched three new cement products Farasi, Njovu Branda and muFundi at an event held at Serena Hotel in Kampala.
Metro Cement’s new production plant in Kamonkoli, Mbale, now has a capacity of one million metric tonnes per year, up from its initial 300,000-tonne capacity when the company entered Uganda’s cement market in 2019. The facility uses advanced German technology adapted to local conditions and is fully automated, a move the company says will ensure consistent quality and efficiency.
Group Director Shamil Razak said the expansion fulfils commitments made by the company in 2022 and reflects confidence in Uganda’s investment climate. He cited political stability, clearer investment regulations and improved connectivity—including direct flights between Uganda and the UAE—as key factors behind the company’s decision to scale up operations.
Razak said Metro Cement is ready to employ more Ugandans, increase its tax contributions and supply a wider range of cement products to meet growing domestic demand. The company already markets the Emirate Brand in Uganda and plans to diversify into other industrial sectors, supporting the country’s broader manufacturing and industrialisation goals.
Speaking at the event, Milly Babalanda, who served as chief guest, said the expansion symbolised confidence in Uganda’s future. She described the project as consistent with the government’s strategy of lifting people out of poverty through job creation, value addition and industrial growth, and reiterated the state’s commitment to working with serious, long-term investors.
Officials from key agencies also signalled institutional backing. Uganda Investment Authority Director General Robert Mukiza and National Environment Management Authority Executive Director Akankwasa Barirega attended the pre-launch and pledged support to ensure an enabling environment for Metro Cement’s expansion, regulatory compliance and sustainable operations.
Taken together, rising UAE investment, growing exports and expanding manufacturing capacity illustrate how targeted diplomacy, business forums and policy consistency are translating into tangible economic outcomes. While challenges remain around scale, competitiveness and product quality, Ugandan officials remain optimistic that deeper engagement with the UAE will underpin sustainable growth, job creation and industrial development in the years ahead.
Background on Uganda-UAE relations
Uganda–United Arab Emirates (UAE) relations have evolved steadily over the past two decades, shifting from limited diplomatic contact into a broad-based economic and strategic partnership anchored in trade, investment, logistics and energy cooperation.
Formal diplomatic relations date back to the early 2000s, but engagement intensified after Uganda opened a resident embassy in Abu Dhabi in 2018. This move marked a turning point, giving Kampala a stronger foothold in the Gulf and enabling more structured economic diplomacy with the UAE, one of the Middle East’s largest investors and trading hubs.
