UAE goes big in Africa

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.New from Bloomberg: Get the Year o [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. New from Bloomberg: [Get the Year of Elections newsletter]( on the votes that matter to markets, business and policy, delivered periodically throughout the year. The United Arab Emirates has quietly become [one of the biggest geopolitical players]( in Africa. The Gulf state is splashing out on a blockbuster $35 billion deal to help bail out Egypt, pledging billions of dollars more in investment in other countries and picking sides in some of the continent’s most brutal wars. With Chinese infrastructure funding tapering off and Western engagement wavering, Abu Dhabi’s cash flows have been coupled with a concerted diplomatic push: an approach mirrored to a lesser extent by its neighbors Saudi Arabia and Qatar. These ambitions have taken the UAE beyond the Gulf states’ historic North-African sphere of influence and from the nearby Horn of Africa into every corner of the continent. Its investment pledges — totaling $44.5 billion last year, the top country for the second year running — focus on renewable power, logistics and technology, in better-developed economies such as Egypt, Morocco, South Africa and Kenya where strong infrastructure and economic expansion are stoking demand for energy. But its role in the continent’s wars are more parochial — largely focused on the regions closest to the Middle East. The wealthy Gulf state backs Khalifa Haftar in the war for Libya, Ethiopian President Abiy Ahmed in his fight against Tigray rebels and reportedly the Rapid Support Forces militia in Sudan, where its battle against the army has created the world’s biggest population displacement crisis and drawn accusations of war crimes. The UAE denies supporting the RSF, while United Nations investigators have called [allegations that it does “credible.”]( From massive government bailouts and backing warlords to operating nine of the continent’s major ports via Dubai-based DP World and committing $4.5 billion in climate financing, the UAE is exerting influence at scale. That’s making the nation of 10 million a force to be reckoned with alongside the traditional big powers like China, the US and Europe. —[Neil Munshi]( Workers load aid supplies into a military plane bound for Port Sudan at the Abu Dhabi International Airport on May 10, 2023. Photographer: Mohamad Ali Harissi /AFP/Getty Images Global Must Reads Deadly attacks on Russian regions bordering Ukraine are increasingly [bringing home the costs]( of Vladimir Putin’s invasion, as Kyiv targets infrastructure and industrial facilities. Drone and missile strikes are upending civilian life particularly in Belgorod, which has also faced ground incursions from Russian militias fighting on Ukraine’s side. Russia [hit back]( today, firing 31 missiles at Kyiv that Ukraine said were downed by air defenses. In the face of Houthi attacks, older ships navigating the Red Sea, a choke point for global maritime trade, [are posing a threat]( to other vessels and the environment. With huge chunks of traffic diverted around Africa, the tankers and cargo ships still attempting to sail through what has turned into a war zone off the Yemeni coast carry a higher-risk profile, often with untraceable insurance. The British-registered cargo ship Rubymar dumped fuel and could still pour environmentally damaging fertilizer into the sea after sinking on March 7. Photographer: Al-Joumhouriah TV/Getty Images Leo Varadkar’s sudden departure as prime minister leaves Ireland at a crossroads. As Jennifer Duggan explains, unaffordable housing, inequality and political pressures linked to immigration give the [nationalist Sinn Fein party]( an opportunity to take power for the first time in 2025 or even sooner, with younger voters especially drawn to the party’s language on soaring rents and squeezed public services. Vo Van Thuong yesterday became the second Vietnamese president to resign in just over a year amid widening probes into some of the country’s top leadership. While the role is largely ceremonial, it is still [the second-most powerful position]( within the Communist Party’s political hierarchy. Venezuela’s government ordered the arrest of nine of opposition leader María Corina Machado’s top aides yesterday for their alleged involvement in a plot to destabilize Nicolás Maduro’s administration. The arrest orders come amid [a growing wave of repression]( by the state ahead of July elections, with at least three other opposition officials detained this month. Donald Trump’s political operation spent an additional $5.6 million on legal fees in February, dampening the Republican presumptive nominee’s political fundraising, which [continues to lag his Democratic rival]( Joe Biden’s cash haul. The Philippines said a Chinese Navy ship “shadowed” its coast guard vessel en route to a Philippines-occupied island in the South China Sea in the [latest incident between the two nations]( asserting overlapping maritime claims. A move by the European Union to extend free trade measures with Ukraine may [intensify the already growing frustration]( among grain producers from Poland to France. Washington Dispatch House Speaker Mike Johnson continues to pursue a strategy of avoiding government shutdowns even if it means agreeing to spending bills that don’t include the cherished priorities of his most conservative colleagues. With legislation to fund the US government through Sept. 30 likely [to be enacted in coming days](, the speaker has so far avoided the fate of his predecessor, Kevin McCarthy, who was ousted last fall for taking the same approach. At a closed-door meeting with Republican lawmakers yesterday, Johnson presented the agreement as an achievement for conservative principles, according to a person familiar with the session. He referred to funding that expanded migration detention beds. Republican leaders also cited the rejection of a Biden administration request to increase Pentagon climate funding. Democrats, however, said they had fended off hundreds of policy demands from Republicans including new restrictions on abortion and migrants’ asylum rights. The Democrats claimed as victories 12,000 new visas for Afghans who helped the US during the Afghanistan war as well as increases to funding for low-income schools, Head Start, cancer research and Alzheimer’s research. Conservatives unhappy with the spending bills so far show no sign of planning to oust Johnson. One thing to watch today: Initial and continuing jobless claims data will be released. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day A push by European leaders to move past decades of neglect [to spur a renaissance in nuclear energy]( may already be too late. The massive upfront costs and repeated delays to new innovations, like small modular reactors, mean the sector will struggle just to maintain its current share of the energy mix. In Germany, it’s already been phased out completely. And Finally Investors in Germany’s cannabis sector are holding back amid uncertainty over whether a partial legalization of the drug for recreational use will take effect as planned on April 1. Regional lawmakers in the upper house of parliament worried about the health impact have [threatened to block the government's bill]( by sending it to mediation when they meet tomorrow in Berlin. That would likely delay the legislation — potentially a first step toward commercial sales — by at least several months or even even kill it completely. Cannabis supporters with a mock joint reading ‘Legalization’ by the Reichstag building in Berlin during the Hemp Parade in 2023. 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