Tap into UAE market, local investors told

President William Ruto and His Highness Sheikh Mohamed bin Zayed Al Nahyan during the signing of a historic Comprehensive Economic Partnership Agreement between Kenya and the UAE in Abu Dhabi. January 15, 2025. [Courtesy, PCS]

Entrepreneurs and investors have been encouraged to capitalise on expanding economic opportunities in the United Arab Emirates (UAE). This is as deepening ties with the Gulf nation positions Kenya as a strategic gateway for international trade, innovation, and investment.

The move comes amid the surge in trade volumes, strengthened bilateral relations, and rising foreign direct investment (FDI) into the UAE from emerging markets, including Africa.

Trade between Kenya and the UAE has more than doubled over the last decade.

In 2023, bilateral trade reached Sh445 billion, making the UAE Kenya’s sixth-largest export market and second-largest import source, accounting for 16 per cent of Kenya’s total imports. Kenya’s top exports to the UAE include agricultural products such as meat and meat products worth Sh9.9 billion.

Fruit exports, particularly pineapples, avocados, and mangoes, contributed Sh5.2 billion, while vegetables and flowers generated an additional Sh5.6 billion. In return, the UAE supplies Kenya with vital goods such as petroleum, machinery, and chemicals.

Stable financing

Abbas Meghji, a legal and compliance expert in the Middle East, explained the challenges many Kenyan businesses face locally. He is the founder of Mena Consultancy, a Dubai-based firm helping Kenyan SMEs expand into the UAE.

“I’ve seen firsthand the barriers Kenyan businesses face when scaling up: limited market size, currency volatility, costly capital, and infrastructure constraints,” said Abbas. “By establishing a presence in the UAE, these businesses gain access to stable financing, a global consumer base, and world-class logistics infrastructure.”

With a domestic population of 55 million, Kenyan businesses often plateau due to limited consumer demand. The volatile shilling also hampers long-term planning. In contrast, the UAE offers a stable dirham pegged to the US dollar, predictable regulations, and affordable capital, thanks to a robust investor ecosystem.

“Many Kenyan entrepreneurs are ready to scale but lack affordable capital,” Abbas explained. “Expanding into Dubai or Abu Dhabi not only lowers their borrowing costs but also unlocks access to the Gulf Cooperation Council, Asia, and Europe.”

The recent pact between Kenya and the UAE on ICT investment signals even deeper alignment in tech development, opening new doors for Kenyan tech entrepreneurs. According to the Kenya National Bureau of Statistics, exports to Asia surged 22.3 per cent in 2024, from Sh259.7 billion to Sh317.5 billion, fuelled by re-exports of jet fuel to the UAE and demand for products like tea and pigeon peas.