Red Sea Tensions Escalate as Gulf Firms Deepen Economic Ties With East Africa
Houthi attacks on Saudi oil tankers intensify as DP World expands into Kenya, Nairobi seeks a $450M World Bank loan, and Emirates NBD grows its Egyptian footprint
Welcome to the Friday edition of Suhail Capital, our flagship brief of the latest developments bridging Africa and the Gulf
Yemeni Houthis Ramp Up Attacks on Saudi Oil Tankers in Red Sea
While tensions in the Strait of Hormuz seemingly ease, hostilities in the Red Sea continue to rise. The Iran-backed Yemeni Houthis have increased their strikes on vessels traversing the Bab al-Mandeb Strait–through which roughly 5% of global energy passes–having struck both the NCC WAFA and Daisy, two Saudi Arabian-flagged oil tankers, according to the group’s spokesperson Yahya Sare’e on X.
The sustained tensions threaten to keep energy prices elevated, even if a long-term deal is secured over the Hormuz.
DP World Establishing $3 Billion Economic Zone in Kenya
Emirati logistics company DP World has announced a partnership with GulfCap Africa, a Kenya-based investment and development group. The partnership will see the two develop a special economic zone spanning 222 hectares in Kenya, dubbed the “Mombasa Industrial Park.” The project comes on the heels of the January 2025 agreement signed between the UAE and Kenya to deepen trade and investment.
The move strengthens the UAE’s growing investment pattern across Africa’s ports. Disruptions in the Strait of Hormuz have pushed both the UAE and Saudi Arabia to increase reliance on the Red Sea, paving the way for deeper economic relations with East African states, such as Kenya.
Kenya Looks to World Bank for $450 Million Emergency Loan to Counter Iran War Effects
Kenya is currently in negotiations with the World Bank over an emergency loan totaling $450 million. Dubbed the Contingent Emergency Response Project (CERP), the proposed fund aims to help cushion Kenya’s economy against multiple pressure points.
Chief among them are heightened energy prices amid the Iran war, given Nairobi’s status as a net oil importer. An additional concern is El Niño, set to cause higher rainfall and disrupt agricultural production, a key economic revenue stream for Kenya.
The financing is expected to be finalized and available by October.
Emirates NBD to Acquire HSBC Egypt’s Retail Business After 3% Net Profit Rise
Emirates NBD Egypt has agreed to acquire HSBC Bank Egypt’s retail banking business, including its branches, ATMs, customer base and relevant staff, pending regulatory approval and with financial terms undisclosed. Vice chairman and managing director of Emirates NBD, Hesham Abdulla Al Qassim, cited Emirates NBD’s confidence in the Egyptian market as a key driver in the acquisition.
The move is part of Emirates NBD’s broader global expansion following a 3% year-on-year increase in net profit in the first half of 2026. Emirates NBD has also recently acquired RBL Bank in India and submitted a revised bid for a stake in IDBI Bank, as it aims to strengthen its global market position.
Join the collective shaping the future of frontier markets. To partner with Oasis Media Collective, contact here.