The revival of a Corridor: UAE- Tanzania (East Africa) - Opinion

Tanzania is strategically positioning itself as a regional gateway through significant infrastructure initiatives, including the development of the Standard Gauge Railway and the expansion of key ports. The UAE is reinforcing these efforts by providing capital investment, logistics expertise, and access to global networks.

The increase in bilateral trade, growing Emirati investments in sectors such as energy, transport, and manufacturing, and the establishment of new institutional linkages—such as business councils—underscore that this partnership extends beyond traditional bilateral relations; it represents the emergence of a collaborative growth corridor. By aligning Tanzania’s ambitions for industrialisation and economic integration with the UAE’s vision to broaden its influence across Africa, both countries are constructing not only stronger bilateral ties but also a strategic route that connects markets, creates opportunities, and anchors prosperity across regions. Notably, this corridor—one of the oldest in the region—is re-emerging with renewed strength and significance, set to play a pivotal role in global trade flows.

BACKGROUND 

During the 7th century, the Indian Ocean trade expanded significantly following the spread of Islam. Experienced Arab seafarers from Oman, Yemen, and the Persian Gulf efficiently utilised the predictable monsoon winds to establish regular maritime routes to the East African coast.

The northeast monsoon (December–March) enabled ships to travel from Arabia to East Africa, while the southwest monsoon (April–September) facilitated their return. This reliable wind pattern supported consistent, biannual maritime commerce.

Consequently, Tanzania’s coastline—including Zanzibar and the key ports of Kilwa, Mafia, and Bagamoyo—became a central hub for trade in commodities such as ivory, tortoise shell, and rhinoceros horn. Many Arab traders established permanent settlements, founding trading towns that contributed to the region’s commercial development.

Archaeological evidence, such as mosques and stone structures in locations like Shanga on the Lamu archipelago, attests to the presence of established trading communities as early as the 8th century, underscoring the historical depth of regional commerce.

These coastal settlements evolved into cosmopolitan centres where Arab, Persian, Indian, and African traders interacted extensively. Intermarriage between Arab merchants and Bantu-speaking communities facilitated cultural integration, laying the foundation for the development of Swahili identity.

By the 10th century, a distinct society had emerged, Muslim in religion, commercially oriented, and closely connected to the coastal environment.

The Swahili language developed during this period, combining a Bantu linguistic structure with significant Arabic vocabulary, particularly in the domains of religion, commerce, and governance. The adoption of Islam began gradually, initially among coastal elites and traders.

By the 9th century, mosques were established along the Tanzanian coast, signifying both a permanent Arab presence and the increasing adoption of Islamic practices.

Conversion to Islam enabled local rulers to form strategic alliances with Arab and Persian merchants. By the 10th century, East Africa, including Tanzania, was firmly integrated into the broader Islamic world economy.

Arab geographers, such as Al-Masudi in the 10th century and Al-Idrisi in the 12th century, documented the East African coast, which they referred to as the Zanj Coast. Commodities from Tanzania were exported to distant markets in Baghdad, Cairo, and other regions, while Arabian textiles, glassware, and ceramics were imported into East Africa.

U.A.E

Situated at the intersection of Asia, Europe, and Africa, the United Arab Emirates (UAE) possesses a significant geographic advantage, which facilitates its emergence as a major hub for transhipment and global connectivity. (Middle East Briefing)

A substantial proportion of the global population is accessible within a short flight from UAE transport hubs, further reinforcing the nation’s role as a critical transit node. 

Recognising logistics, shipping, and aviation as foundational pillars of its post-oil diversification strategy, the UAE views investment in ports and airports not merely as infrastructure development, but as a strategic means to capture value throughout international supply chains. 

Through active participation and control in overseas port and airport operations, UAE-based companies can extend their influence, secure critical trade routes, and generate returns that transcend domestic boundaries. Some analysts have described this expansion, particularly in Africa and other regions, as a form of 'sub-imperial' outreach. 

Major port operators include DP World, AD Ports Group, and other key stakeholders.

DP World, headquartered in Dubai, is recognised as a global leader in port and terminal operations, managing facilities in numerous countries and handling a significant proportion of global container traffic. AD Ports Group, based in Abu Dhabi, oversees a diverse portfolio of ports, maritime and logistics services, free zones, and industrial parks. Its expanding network includes Khalifa Port and overseas operations such as concessions in Pointe Noire and Luanda, Angola. 

These state-backed or state-affiliated entities function as extensions of the UAE’s infrastructure diplomacy and commercial influence. 

The UAE is making substantial investments in domestic airport infrastructure, exemplified by the development of Al Maktoum International Airport (DWC)—a $35 billion project aimed at establishing the airport as a premier global aviation hub. 

Sharjah International Airport has similarly undergone terminal expansions to support increased capacity and connectivity. 

In April 2024, approval was granted for a major terminal expansion at Al Maktoum International Airport, featuring 400 gates and multiple runways, with the long-term objective of consolidating all of Dubai’s air traffic at this site. 

These targeted investments are designed to enhance capacity, increase connectivity, and reinforce the UAE’s position as a leading global transit and logistics hub. 

The UAE offers a stable and predictable legal and regulatory framework, which fosters investor confidence and facilitates international business operations. 

Numerous free zones across the UAE offer favourable conditions, including full foreign ownership, tax incentives, exemption from customs duties for specific trade activities, and streamlined capital repatriation processes. 

To strengthen legal protections and facilitate cross-border investment, the UAE has entered into multiple Double Taxation Avoidance Agreements (DTAs), Bilateral Investment Treaties (BITs), and Comprehensive Economic Partnership Agreements (CEPAs). 

The UAE integrated ports, airports, logistics zones, free zones, industrial parks, digital platforms, and customs systems to form a cohesive logistics ecosystem. For example, AD Ports utilises advanced digital platforms such as Maqta Gateway and ATLP to synchronise trade and logistics flows across maritime, land, air, and free zone domains. 

Continuous investment in digital infrastructure, innovative technologies, and trade facilitation measures enables the UAE to reduce operational friction and handling times. 

Many organisations benefit from tax exemptions or reductions, particularly within free zones, as well as the absence of personal income tax factors which increases the attractiveness of business operations and profitability. 

The government also offers favourable concessions and tenders for the development and management of strategic assets, such as ports and terminals, often through long-term agreements with international partners. 

These investments yield direct returns through fees, tariffs, and handling services, while also capturing value across the supply chain—including logistics, warehousing, and trade-related services.

Such activities contribute to the growth of non-oil sectors, thereby supporting the UAE’s broader economic diversification objectives.

Ownership or operation of key overseas infrastructure enables the UAE to strengthen trade corridors, forge strategic alliances, and enhance its leverage in partner nations. 

The UAE’s presence in Africa is particularly notable, with UAE-linked operators managing ports and airports across East, West, and Central Africa, thereby expanding the country’s strategic footprint. 

The UAE’s logistics hubs have become increasingly attractive to airlines, shipping companies, logistics providers, and trade flows, fostering a virtuous cycle of connectivity, traffic growth, and further investment.

As infrastructure capacity expands, the marginal cost associated with additional traffic declines, thereby improving the efficiency of transit through the UAE. Overcapacity risk arises if projected traffic and usage levels do not materialise, potentially resulting in the underutilization of costly infrastructure assets.

Geopolitical and sovereignty challenges are inherent in operating infrastructure within foreign jurisdictions, as these activities may be affected by policy shifts, local political dynamics, or disputes regarding operational control.

Regulatory complexity and coordination challenges arise from the need to operate across multiple jurisdictions, free zones, regulatory regimes, customs systems, and legal frameworks, thereby increasing administrative friction and risk.

Competition remains strong, as other global logistics hubs—including Singapore, Rotterdam, and Malaysia—are also actively enhancing their infrastructure and capabilities.

The UAE is expected to further expand its global infrastructure portfolio, particularly across Africa, to support emerging trade corridors and logistics networks.

Greater integration with emerging trade corridors—such as those linking Africa and Asia will further enhance the UAE’s status as a global logistics hub.

Sustainability and green logistics are expected to become increasingly central, with a focus on reducing emissions, adopting smart port technologies, electrification, and utilising clean energy in operations.

Ongoing digital transformation—incorporating automation, blockchain, artificial intelligence, and the Internet of Things—will continue to drive efficiency gains and cost reductions.

TANZANIA

Tanzania shares borders with several landlocked countries, including Uganda, Rwanda, Burundi, the Democratic Republic of Congo, Zambia, and Malawi. By improving its infrastructure, Tanzania can facilitate the movement of goods to and from these neighbouring markets, enhancing regional trade integration. Additionally, Tanzania’s Indian Ocean coastline provides inland nations with essential maritime access to global trade networks.

If effectively leveraged, Tanzania could serve as a vital transit corridor for a substantial regional market. Analysts often cite a catchment area exceeding 200 million people in East and Central Africa as an immediate opportunity. With successful regional integration, Tanzania has the potential to function as a primary entry point to a combined market of 300–500 million people across East, Central, and Southern Africa.

Tanzania is assuming a central role in facilitating intraregional trade, with Dar es Salaam surpassing Nairobi in trade volume among East African Community (EAC) countries.

Furthermore, the country continues to improve its macroeconomic stability and business environment, making it increasingly attractive to foreign exporters and investors. Consequently, Tanzania’s geographic position, combined with progressive policy measures, provides a robust foundation for its aspirations to become a regional trade hub.

The Port of Dar es Salaam handles approximately 95% of Tanzania’s international trade and provides services to neighbouring landlocked countries.

Plans are underway to modernise the port by deepening berths, expanding terminals, upgrading cargo handling processes, and implementing advanced digital systems.

The long-anticipated Bagamoyo Port project aims to alleviate congestion in Dar es Salaam and establish a significant new logistics hub, complete with a planned industrial zone. Bagamoyo Port is projected to handle up to 20 million TEUs by 2045, positioning it as a significant regional logistics centre. 

Enhancing maritime connectivity will be essential for accommodating larger container vessels, improving turnaround times, and reducing operational costs.

Corridor development initiatives are underway to integrate mines with rail networks, rail with ports, and ports with international shipping routes.

The effectiveness of the rail system will depend on the development of feeder networks, efficient intermodal transfer points, and harmonised customs and cargo handling procedures.

Tanzania boasts one of the most extensive road networks in East Africa, comprising trunk and regional roads that total approximately 86,472 kilometres.  The construction and improvement of road infrastructure can facilitate the integration of rural and interior regions with coastal and cross-border trade nodes. The Kigongo–Busisi Bridge, spanning the Gulf of Mwanza and measuring approximately 3.2 kilometres in length, represents a significant infrastructure development that has substantially reduced ferry crossing times.

Several border regions, such as Mbeya and Songwe, are emerging as critical trade hubs facilitating integration with the Southern African Development Community (SADC) and neighbouring countries.

Nonetheless, challenges persist, including road maintenance, capacity limitations, weighbridge bottlenecks, customs delays, and inefficient inspection processes.

Customs and trade facilitation processes must be enhanced and harmonised with neighbouring states to reduce delays and promote efficient cross-border trade.

Robust legal and regulatory frameworks, transparent contracting, effective public-private partnerships (PPPs), comprehensive risk mitigation, and sustained political stability are essential for successful infrastructure development. The government has explicitly prioritised infrastructure support in its national investment and development plans.

Successful implementation of these infrastructure and institutional reforms could yield transformative impacts for Tanzania:

Lower Logistics Costs: Enhanced infrastructure can significantly decrease transport and trade costs, positioning Tanzanian routes as more cost-effective alternatives within the region.

Economic Diversification: Improved access will enable the scaling of agricultural zones, mining operations, and manufacturing, fostering value addition beyond the export of raw materials.

Regional Integration and Dominance: Tanzania can establish itself as the backbone of trade for East, Central, and Southern Africa, extending its influence beyond local markets.

Current U.A.E-Tanzania 

Tanzania and the United Arab Emirates (UAE) formally established a diplomatic relationship. Since then, the UAE has maintained an embassy in Dar es Salaam (since around 2011), while Tanzania opened its embassy in Abu Dhabi in 2002.

Over the decades, bilateral relations have remained cordial, steadily progressing from basic diplomatic engagement to more robust economic and sectoral cooperation. 

In December 2024, the two countries marked 50 years of diplomatic ties and held their first high-level political and diplomatic consultations to review past cooperation and set new priorities 

These longstanding foundations provide both political legitimacy and continuity for the evolving partnership.

Trade between Tanzania and the United Arab Emirates (UAE) has shown consistent and robust growth, highlighting the significance of economic ties between the two nations. In 2022, non-oil trade exchanges reached approximately USD 2.5 billion, reflecting an expanding commercial partnership. By 2023, Tanzania’s imports from the UAE totalled around USD 1.42 billion, with mineral fuels and oils (about USD 1.08 billion) leading the import categories, followed by plastics, machinery, electronics, and vehicle parts. On the export side, Tanzania supplied goods valued at approximately USD 686.4 million to the UAE in 2023.

A notable subset of this relationship is the trade between Dubai and Tanzania, which grew by about 9% year-on-year in 2023, reaching AED 9.8 billion. By September 2024, around 274 Tanzanian companies were registered with the Dubai Chamber of Commerce, indicating deepening business ties. To further strengthen cooperation, a Memorandum of Understanding (MoU) was signed between Dubai Chambers and the Tanzania Chamber of Commerce, Industry & Agriculture, aimed at promoting collaboration through trade missions, information exchange, and private-sector linkages.

These developments underscore that trade remains a cornerstone of the bilateral relationship, positioning the UAE as a key trading partner for Tanzania.

Trade between Tanzania and the United Arab Emirates (UAE) has shown consistent and robust growth, highlighting the significance of economic ties between the two nations. In 2022, non-oil trade exchanges reached approximately USD 2.5 billion, reflecting an expanding commercial partnership. By 2023, Tanzania’s imports from the UAE totalled around USD 1.42 billion, with mineral fuels and oils (about USD 1.08 billion) leading the import categories, followed by plastics, machinery, electronics, and vehicle parts. On the export side, Tanzania supplied goods valued at approximately USD 686.4 million to the UAE in 2023.

A notable subset of this relationship is the trade between Dubai and Tanzania, which grew by about 9% year-on-year in 2023, reaching AED 9.8 billion. By September 2024, around 274 Tanzanian companies were registered with the Dubai Chamber of Commerce, indicating deepening business ties. To further strengthen cooperation, a Memorandum of Understanding (MoU) was signed between Dubai Chambers and the Tanzania Chamber of Commerce, Industry & Agriculture, aimed at promoting collaboration through trade missions, information exchange, and private-sector linkages.

These developments underscore that trade remains a cornerstone of the bilateral relationship, positioning the UAE as a key trading partner for Tanzania.

The United Arab Emirates (UAE) has emerged as a significant investor in Tanzania, with a particular focus on sectors including mining, energy, logistics, manufacturing, and infrastructure. 

A notable example is the high-profile port management agreement with DP World, a Dubai-based company. In 2023, the Tanzanian parliament approved a 30-year contract for DP World to manage four berths at the Port of Dar es Salaam, with performance reviews scheduled every five years.

The Tanzanian government initiated the deal as a strategic initiative to enhance port efficiency, increase throughput, and strengthen connections to regional trade corridors.

 In 2024, GSG Energies, a UAE-based firm, announced a planned investment of USD 500 million in Tanzania across sectors such as transport, mining, manufacturing, and petroleum distribution. This investment is projected to generate over 3,000 jobs over a five-year period. The UAE and Tanzania have also formalised their partnership through cooperation agreements in customs, mining investment, and the establishment of a joint UAE–Tanzania Business Council aimed at deepening private sector collaboration.

In 2022, both countries signed an Agreement on the Avoidance of Double Taxation (ADT), designed to facilitate cross-border investment, reduce tax uncertainty, and prevent double taxation of income in both jurisdictions.

Collectively, these agreements and investments reflect a clear intent to institutionalise and expand investment flows beyond isolated projects.

In addition to formal agreements, trade missions are regularly organised to foster business linkages. For instance, in December 2024, the Dubai International Chamber conducted a trade mission to Dar es Salaam, facilitating 408 business meetings between Dubai and Tanzanian firms. The DUBUY digital platform, launched by DP World in the UAE, further supports commercial engagement by facilitating connections between businesses in the UAE and Africa, including Tanzania.

Reflecting this evolving partnership, Tanzania’s economic diplomacy under President Samia Suluhu Hassan has prioritised opening trade with new partners and leveraging international collaborations, with the UAE frequently identified as a central pillar of this strategy. The Tanzanian Chamber of Commerce, Industry and Agriculture (TCCIA) has also signed memoranda of understanding with UAE counterparts to establish frameworks for collaboration, business councils, and joint ventures.

High-level political gestures have further reinforced the bilateral relationship. In 2025, President Samia Suluhu Hassan of Tanzania was awarded the UAE’s Order of the Mother of the Nation by the UAE President, symbolising diplomatic goodwill and alignment between the two nations.

During high-level visits, both countries have emphasised their ambitions to expand cooperation in diverse areas such as trade, investment, energy, logistics, infrastructure, agriculture, and climate response. Both countries have reaffirmed their commitment to broadening bilateral cooperation and strengthening engagement in multilateral forums. On regional and continental issues, Tanzania and the UAE occasionally coordinate or support shared frameworks addressing climate change, trade blocs, and infrastructure connectivity. 

In essence, the political relationship between Tanzania and the UAE remains largely amicable and cooperative, with intermittent friction arising from significant agreements.

Future of U.A.E- Tanzania 

For the UAE–Tanzania corridor to operate effectively, Tanzania is actively upgrading its infrastructure—including railways, roads, and ports—to accommodate increased throughput and support deeper integration.

In 2024, Tanzania inaugurated a USD 3.1 billion standard gauge railway spanning 541 kilometres between Dar es Salaam, the commercial capital, and Dodoma, the administrative capital. This initiative strengthens internal logistics and enhances connectivity between inland regions and the coast. Ongoing and planned expansions of internal railway lines—including connections to Mwanza and Kigoma—aim to link mineral-rich regions and landlocked neighbouring countries with Tanzania’s coastal ports. Regional rail link initiatives, such as the proposed Tanzania–Burundi standard gauge line, are expected to further extend Tanzania’s rail network, providing inland regions with direct access to the country’s ports.

The Mtwara Development Corridor project seeks to connect southern Tanzania with adjacent regions through integrated road, rail, and waterway access originating from Mtwara Port. The planned expansion of Bagamoyo Port aspires to establish it as a major new regional port in East Africa, with a projected capacity of 20 million TEUs by 2045.

These infrastructure developments are essential for the corridor’s effectiveness, creating reliable and efficient routes from production areas in the interior to export gateways along the coast.

Beyond economic considerations, the UAE–Tanzania corridor is shaped by strategic, political, and regional competitive dynamics. The UAE’s East Africa strategy encompasses a geopolitical dimension, seeking to strengthen influence along the Red Sea and Indian Ocean flanks, counterbalance other global powers, secure critical maritime routes, and more closely integrate Africa with Gulf-based logistics networks. More broadly, the UAE aims to position itself as a primary interface between African markets and global supply chains, leveraging its advanced logistics, port operations, and financial hubs. The UAE’s increasing involvement in Africa’s infrastructure sector—including ports, railways, and logistics—is integral to its broader foreign direct investment and influence strategy. The conferral of the “Mother of the Nation Order” by the UAE to Tanzanian President Samia Suluhu Hassan in 2025 underscores symbolic ties and high-level recognition between the two countries. Additionally, the Tanzanian Prime Minister’s visit to Abu Dhabi in mid-2025 served to deepen diplomatic, trade, and bilateral cooperation ties.

Consequently, the process of corridor development is not merely transactional; it carries substantial political significance and is informed by long-term strategic considerations.

While the vision for the corridor is promising, several significant challenges must be addressed:

Return on Investment and Commercial Viability: Large-scale infrastructure projects necessitate sustained demand, meticulous planning, and robust governance, as corridor investments often entail significant capital risk.

Coordination and Institutional Capacity: Successful corridor development requires effective alignment among multiple agencies—such as ports, customs authorities, railways, and local governments—as operational bottlenecks may impede progress.

Competition and Regional Alternatives: Competing corridors, such as those via Kenya, Uganda, and Ethiopia, also vie for trade flows. The UAE–Tanzania corridor must deliver superior efficiency, reliability, and cost competitiveness to attract and retain traffic.

Sustainability and Social Impact: It is critical to ensure that corridor growth benefits local communities, prevents displacement, and aligns with established environmental and social safeguards to maintain legitimacy.

Taken together, these elements reveal a transformative trajectory:

1. Anchor relationships & trust

The diplomatic and institutional foundations established between the UAE and Tanzania provide legitimacy and continuity to the corridor’s development.

2. Trade and investment deepening

Increasing trade volumes, memoranda of understanding, business councils, and direct investments by UAE firms in Tanzania indicate a shift from a traditional supplier–consumer dynamic to one of co-development and co-investment.

3. Infrastructure & logistics integration

Ports, logistics hubs, and internal connectivity infrastructure are being constructed or expanded, with UAE logistics companies positioning themselves as key operators within this growing network.

4. Regional reach

Tanzania’s role extends beyond bilateral trade with the UAE; it is positioned to serve as a gateway to East and Central Africa. The corridor concept envisions Tanzania’s interior and neighbouring markets integrating with the UAE through maritime, air, and rail connections.

5. Strategic positioning

The corridor is both economic and geopolitical in nature, as the UAE views Tanzania as a stable node at the Indian Ocean–East Africa interface, anchoring its strategy as a bridge between Africa, the Gulf, and the wider Indian Ocean region.

6. Growth trajectory ahead

If current momentum is sustained—with infrastructure projects completed, regulatory frameworks streamlined, and investments maintained—the UAE–Tanzania corridor could emerge as one of the most prominent trade and investment axes linking the Gulf and East Africa.

The opinions and thoughts expressed in this article reflect only the author's views.

Dean Tavakoli is an analyst and a senior executive who possesses over a decade of extensive global quantitative investment experience. He is the CEO of Sea Enerji, a petrochemical trading company based in Turkey and has also served as a strategic advisor for the Middle East Oil and Gas.