Fast-Growing Economy, Young Population Can Spur Ethiopia-Gulf Coop: ODI Researcher 

Addis Ababa, July 23, 2026 (ENA) — Ethiopia’s rapidly growing economy and expanding young population can create immense opportunities for deeper economic cooperation with the Gulf, Max Mendez-Parra, a Principal Research Fellow at the ODI Global think tank Group, said.

According to the Principal Researcher, the Gulf is becoming an increasingly important partner for Africa and for Ethiopia in particular.

Ethiopia’s relationship has significant potential to support economic transformation by shifting trade with Gulf countries toward sectors that strengthen the country’s growth, including agriculture, manufacturing, mining, and critical minerals, he added.

Mendez-Parra stated that the Gulf could also contribute capital and sector expertise that would help Ethiopia expand and strengthen industries essential to long-term development.

He described Ethiopia as a potential pilot for broader cooperation, noting that the country is widely viewed as an emerging economic hub in Africa.

The Principal Researcher said Ethiopia’s progress over the past two decades is not a short-term trend but part of a long-term trajectory.

He emphasized that Gulf investors would find value in Ethiopia’s expanding economy while the country’s increasing young population could provide both labor and innovation at a time when many other regions face demographic challenges.

Ethiopia on the other hand could leverage its youthful workforce and human capital to accelerate sectors such as manufacturing and commercial agriculture, and potentially develop new pathways in areas like digital innovation.

“Ethiopia is one of the countries with growing economies globally over the last 20 years… For the Gulf investors, you are bringing to them basically the certainty of a growing economy, and this is something critical. Second is an increasing young population in a moment where basically the rest of the world is facing significant demographic challenges.”

Mendez-Parra noted that Gulf-Africa engagement is an alternative to traditional external partnerships that have often relied heavily on debt-based financing.

According to him, Gulf involvement is more likely to be driven by equity ownership, changing both the terms and structure of investment relationships.

The Principal Researcher underscored that the collaboration between the Gulf and Africa can bring investment, expertise, and expanded trading opportunities, supporting economic growth for both regions.