The United Arab Emirates (UAE) is significantly expanding its investment in the mining sector, particularly in Africa and, to a lesser extent, Latin America. This strategic move aims to support the UAE’s transition to renewable energy and achieve national industrial goals. Unlike its Gulf neighbors, the UAE is focusing on developing its national defense industry and advanced technologies. Abu Dhabi, in particular, is advancing its defense sector ahead of Saudi Arabia, producing and exporting Emirati-made defense products while also working to reduce the carbon emissions of its armed forces. The minerals and metals being secured abroad are often dual-use, crucial for both the defense industry and broader industrial applications.
As of 2023, EDGE, the Emirati defense conglomerate, produces around 110 products, with about a quarter of its orders coming from international clients. The UAE armed forces are increasingly sourcing their supplies from domestic companies, highlighted by the 2023 International Defence Exhibition & Conference (IDEX) in Abu Dhabi. The UAE’s strategy is to control the supply chain of critical raw materials, aiming to gain a strategic advantage over regional competitors by expanding its civilian industrial base and securing control over critical materials.
The minerals-defence nexus
The UAE’s mineral-defence strategy has three main dimensions:
- Expansion of the national defence industry: The Abu Dhabi Economic Vision 2030 identifies metals as a key driver of economic growth, with a focus on developing capabilities in aerospace, defense electronics, and space apparatus. The UAE is concentrating on specific defense products such as armored vehicles, military drones, missiles, cyber and electronic warfare, and shipbuilding.
- Advanced technologies and AI: Minerals like copper are essential for artificial intelligence (AI) technologies, which are increasingly integrated into security and defense. As AI requires significant energy, the demand for minerals to support clean energy technologies, such as solar photovoltaics and wind energy, is rising. While the UAE is a pioneer in nuclear energy, it still relies on other sustainable energy sources for its growing energy needs.
- Climate change strategy for defence: Launched in 2023, the UAE’s national climate change strategy aims to reduce carbon emissions from the armed forces by focusing on sustainable infrastructure and green equipment. The Ministry of Defence has partnered with Masdar to develop solar energy projects, with copper, lithium, manganese, and nickel being vital for solar panels, wind energy, and energy storage technologies.
Dual-use minerals and metals
The UAE’s mining strategy began with a significant bauxite deal in Guinea in 2013, focusing on construction materials but also essential for photovoltaics and the defense industry. Since then, the UAE has expanded its mining deals, particularly in Latin America and Africa.
In 2021, JFR Investments, a UAE-based firm, signed agreements in Brazil and Peru for copper, tantalum, nickel, and iron ore. The following year, the Dubai Investment Fund participated in developing niobium mines in Nigeria, and Emirates Steel entered a joint venture in Mauritania for iron oxide pellets. In 2023, the International Resources Holding (IRH), led by Shaykh Tahnoon bin Zayed Al Nahyan, acquired a majority stake in Zambia’s Mopani copper mine and secured agreements in Angola, Burundi and the Democratic Republic of Congo (DRC) for various minerals. The UAE also partnered with Kohinoor Spinning Mills in Pakistan for bauxite and with Q Global Commodities in South Africa for lithium and other green metals.
Building the supply chain
The UAE’s strategy involves controlling the entire supply chain, from exploration to trading. The IRH consolidates geo and tech, mining, refining, and trading under one roof, becoming the region’s second-largest company by market capitalization. Shaykh Tahnoon, a key figure in UAE’s mining and AI strategies, oversees these developments. The UAE’s position as a major trading hub, with significant port concessions in Africa and Latin America, supports its mining ambitions.
The UAE’s investments extend to port infrastructure, with DP World and AD Ports Group securing concessions and building new ports in Africa and Latin America. These ports facilitate the export of raw materials and strengthen the UAE’s strategic position. Additionally, the Tawazun Council established a free zone in Abu Dhabi dedicated to the military sector, and Khalifa Port signed a deal to import and process lithium from Zimbabwe.
Securing strategic interests
The UAE’s mining investments and supply chain control strategies have significant security implications. As the UAE’s interests in Africa grow, it will need to secure its investments in often unstable regions. This may involve increasing military influence through counterterrorism efforts, military cooperation, and establishing military outposts abroad.
The UAE’s approach highlights the complex interplay between securing raw materials, advancing defense capabilities, and addressing environmental concerns. As the nation continues to build its mining portfolio and strengthen its supply chains, it will need to navigate these strategic and security challenges carefully.
