Uganda–UAE ties deepen as investment and exports surge, Metro Cement pre-launches new products

Officials launch the new Metro Cement products at Serena Hotel on December 18, marking the expansion of the company’s production capacity and product range

Uganda’s economic partnership with the United Arab Emirates (UAE) is entering a new phase, with rapidly growing foreign direct investment, rising exports, and expanded commitments in manufacturing.

Government-backed initiatives and structured business forums, such as the Uganda–UAE Business Forum, have created platforms for investors to explore opportunities, interact with partners, and translate interest into capital inflows.

Foreign direct investment from the UAE to Uganda has risen sharply over the past seven years, increasing from about $300bn in 2018 to an estimated $3.5 billion today.

Uganda’s ambassador to the United Arab Emirates, Zaake Wanume Kibedi project that once Uganda’s oil refinery is completed, UAE-linked investments could reach as much as $7 billion, highlighting the strategic importance of the bilateral relationship.

The UAE has also become Uganda’s leading export destination since September, with trade valued at around $1.3 billion last year, roughly half of which came from agriculture. Kibedi says improved quality and consistency in production could boost exports to the UAE market tenfold.

The partnership aligns with Uganda’s broader development priorities under the ten-fold growth strategy, which emphasizes agro-industrialization, tourism, minerals development, and science and technology.

UAE diplomats and trade officials say the country remains a key gateway for capital, markets, and technology, supporting Uganda’s efforts to diversify exports and attract long-term investment.

A visible symbol of this growing cooperation is the expansion of Metro Cement’s operations.

The company pre-launched its new cement products at Serena Hotel on December 18, introducing Farasi, Njovu Branda, and muFundi. The company’s new plant in Kamonkoli, Mbale, now has a production capacity of one million metric tonnes, using advanced German technology customized for Ugandan conditions.

Fully automated and designed for high-quality output, the expansion marks the fulfilment of commitments made by Metro Cement in 2022 and follows the company’s initial entry into Uganda’s cement sector in 2019 with a 300,000-tonne capacity.

Group Director Shamil Razak praised Uganda for its political stability, coherent investment regulations, and improvements in connectivity, including the introduction of direct flights between the UAE and Uganda.

He said the company is ready to employ more Ugandans, pay more taxes, and supply a greater variety and quantity of cement to the local market. Metro Cement already has another product, Emirate Brand, on the market and plans to expand into other industrial sectors, further supporting Uganda’s manufacturing and industrialization goals.

Milly Babalanda, minister for the presidency, who presided as the chief guest, said the expansion and product launch “celebrate the confidence of our people and our future as Uganda.”

She noted that the project reflects the government’s philosophy of lifting people out of poverty through job creation, value addition, and industrial growth, and reiterated the government’s commitment to work with serious investors.

The surge in UAE investment, growing exports, and expanded manufacturing capacity illustrate how focused diplomacy, business forums, and consistent policies can translate into tangible economic outcomes.

As Uganda continues to address challenges of product quality, scale, and competitiveness, officials remain optimistic that deeper engagement with the UAE will support sustainable growth, job creation, and industrial development in the years ahead.

Apart from Kibedi and Babalanda, at the prelaunch event, Uganda Investment Authority Director General Robert Mukiza and National Environment Management Authority Executive Director, Akankwasa Barirega were also present and pledged their institutions’ support for Metro Cement’s growth agenda, affirming commitment to facilitate an enabling environment for expansion, compliance and sustainable operations as the company scales up its production and market reach.