The United Arab Emirates (UAE) has solidified its position as Zimbabwe's largest trade partner, investing a staggering $1.4 billion in real estate and gold trading in the Southern African country. This significant investment has enabled the UAE to surpass China as Zimbabwe's most important partner, marking a significant shift in the country's economic landscape.

This development is particularly noteworthy given Zimbabwe's extensive loan to China and the West's reluctance to do business with the country. The UAE's investment is seen as a strategic move to grow its influence in Africa, challenging the dominance of China and the West in the region.

According to the UAE administration, the country has spent a whopping $110 billion in Africa on various projects, including trade, investment, renewable energy, logistics, food security, and infrastructure development. This massive investment has enabled the UAE to establish itself as a major player in the African continent.

Eldred Masunungure, a political science professor at the University of Zimbabwe, has praised the UAE's rapid rise to becoming Zimbabwe's foremost trading partner, stating that the country has gone "from being unknown in commerce to becoming the nation's foremost trading partner" in just a few years.

Despite Zimbabwe's significant debt burden, which has risen to $21 billion since its default in 1999, the UAE has consistently been among the country's top five foreign direct investment sources, according to Zimbabwe Investment data on Bloomberg. This is a testament to the UAE's commitment to investing in Zimbabwe's economy.

Zimbabwe's economy, which is largely informal, has been plagued by high inflation, making it challenging for larger firms to thrive. However, the country's gold production, which reached a record 36 tons last year, has become a "bright spot" for the economy, attracting the UAE's investment.

Following Zimbabwe's President Emmerson Mnangagwa's 2019 visit to the UAE, the country decided to invest in Zimbabwe, recognizing the potential for growth and development. According to Oxford Economics economist Lyle Begbie, Zimbabwe's gold reserves were the primary draw for the UAE.

Hasnain Malik, an emerging market strategist at Tellimer in Dubai, has cautioned that while the UAE's investment inflows are significant, they are not sufficient to address Zimbabwe's sovereign debt arrears and stabilize the currency. He emphasized that a comprehensive economic solution for Zimbabwe requires addressing these issues, committing to a credible fiscal path, unlocking multilateral finance and foreign direct investment, and allowing a freer float of the currency.

The UAE's investment in Zimbabwe marks a significant shift in the country's economic landscape, as it seeks to grow its influence in Africa and challenge the dominance of China and the West. As the relationship between the UAE and Zimbabwe continues to grow, it will be interesting to see how this development impacts the region's economic dynamics.