Middle East Crisis Opens New Export Opportunities for Zimbabwe in UAE Market

 Simba Makahamadze

HARARE — Escalating tensions in the Middle East and rising global freight costs are reshaping international supply chains while simultaneously creating fresh agricultural export opportunities for Zimbabwe in the United Arab Emirates (UAE), one of the world’s most import-dependent food markets.

The Zimbabwean Business Council UAE (ZIBCO) says Zimbabwean farmers, horticulture exporters, and agro-processing businesses are well-positioned to expand food exports into the UAE as the Gulf nation intensifies efforts to strengthen food security amid growing regional instability.

Speaking during a briefing following ZIBCO’s 4th Annual General Meeting in Dubai, council chairperson Simba Makahamadze said the geopolitical crisis in the Middle East had exposed the UAE’s heavy dependence on imported food supplies.

“More than 90 percent of food in the UAE is imported,” Makahamadze said during an interview with ZiFM Stereo News. “If we look at the strategic aspects of Dubai in particular, the D33 strategy, what you realize is that food security is one of the key pillars. It is an opportunity that we can tap into Zimbabwe.”

His remarks come as tensions involving Iran, Israel, and the broader Gulf region continue affecting logistics, shipping routes, and global supply chains, leading to increased insurance premiums and transportation costs.

According to Reuters, Zimbabwean horticulture exporters are now paying about US$3.80 per kilogram to export products to European markets, up from between US$2 and US$2.20 last year due to rising fuel and freight costs linked to the regional conflict. Makahamadze said the disruptions were already affecting cargo movement into the Gulf region.

“The reality is that it has disrupted logistics. It has resulted in high insurance premiums. So, the movement of goods has not been easy,” he said. “But if we look at it from a Zimbabwean point of view, and from an agriculture point of view, this is an opportunity.”

Trade relations between Zimbabwe and the UAE have expanded rapidly in recent years, with bilateral trade increasing from approximately US$901.7 million in 2019 to more than US$2.3 billion in 2023. Zimbabwe’s exports to the UAE rose from US$2 billion in 2021 to US$2.7 billion in 2022 before slightly declining to US$2.3 billion in 2023. Imports from the UAE fell to about US$268.6 million during the same period.

Makahamadze said the UAE had now emerged as Zimbabwe’s leading export destination.

“From the statistics that we have, as of last year, we had the UAE becoming the biggest trading partner for Zimbabwe in terms of exports, with an amount of about US$4.1 billion,” he said. “The bigger part, about US$1.9 billion, is being contributed by the mining industry. We also have a contribution from the agriculture industry as well.”

“So if we are to then look at the trajectory of that trade between the two countries, it’s actually going higher.”

The UAE has become a major destination for Zimbabwean gold, minerals, horticultural products, and agricultural commodities, while Dubai continues strengthening its role as a global logistics, trade, and investment hub linking Africa, Asia, and Europe.

Zimbabwe is also courting investments worth between US$10 million and US$200 million in sectors including mining, renewable energy, manufacturing, agriculture, and energy generation as economic ties with the UAE deepen. Makahamadze said several investment negotiations facilitated by ZIBCO were now at advanced stages.

“We have investment conversations that we facilitated for the mining industry, renewable energy industry, manufacturing, energy generation, and agriculture,” he said. “So, we are looking at ticket sizes of between US$10 million and US$200 million, and we have about five of those conversations still ongoing.”

He revealed that one proposed investment transaction had already progressed to the signing of a term sheet, reflecting growing investor confidence in Zimbabwe’s economic prospects.

Established under the regulatory framework of Dubai Chambers, ZIBCO represents Zimbabwean-owned businesses and professionals operating in the UAE while facilitating investment flows, market access, and trade partnerships between the two countries.

“Our mandate is dual,” Makahamadze said. “We look at the outbound side of things, where we are driving capital into Zimbabwe from the UAE, and we also look at the inbound side of things, where we are helping businesses that are coming to set up in the UAE.”

The organisation recently hosted an exporters’ indaba in partnership with ZB Bank and Dubai Chambers, involving more than 30 Zimbabwean exporters.

“The core of that indaba was to ensure that we help and facilitate the movement of goods, besides exporting and cargo movement as well, into the UAE,” Makahamadze said.

ZIBCO also confirmed that Dubai-based logistics and retail operator DP World had secured licensing approvals to establish duty-free retail operations at Zimbabwean airports.

“We are going to see employment creation at the airports and, beyond contribution to trade, the key issue is the employment of locals,” Makahamadze said.

He added that Zimbabwe’s agriculture sector remained strategically positioned to benefit from the UAE’s growing demand for imported food products and diversified supply chains.

Zimbabwe UAE trade Simba Makahamadze