How Bilateral Partnerships Differ From Multilateral Development

Traditional multilateral development involves international financial institutions, multiple stakeholders, and extensive review procedures. Projects require coordination among donor governments, recipient countries, development banks, and implementing agencies. This complexity creates lengthy approval timelines and rigid implementation frameworks.

Bilateral partnerships operate through direct agreements between the investor and the host government. Decision-making involves fewer stakeholders, enabling rapid deployment and adaptation.

The World Economic Forum notes that trade between the UAE and sub-Saharan Africa increased by over 30 percent during the last decade, while trade between Saudi Arabia and sub-Saharan Africa is now 12 times the value it was a decade ago.

Key differences in bilateral versus multilateral approaches:

• Decision speed: Bilateral agreements negotiated in months rather than years
• Flexibility: Terms adapted to local conditions without institutional constraints
• Alignment: Projects reflect host government priorities rather than donor policies
• Implementation: Single point of accountability rather than distributed responsibility

Sheikh Ahmed’s 50-year concession for Karachi Port demonstrates patient capital that multilateral institutions often cannot provide due to mandate constraints and political pressures from donor governments.

What South-South Cooperation Offers Emerging Markets

Gulf-Africa and Gulf-Asia partnerships operate within a South-South cooperation framework that emphasizes partnership rather than donor-recipient relationships. This includes shared development experiences and mutual economic benefit.

The European Council on Foreign Relations notes that Gulf states offer African partners “development cooperation and financing that depart from the Western model.” This includes investment without heavy political conditions, flexible financing structures, and emphasis on infrastructure that generates immediate economic activity.

According to Al Jazeera Centre for Studies, Gulf capital can address Africa’s significant infrastructure and development financing gaps. Gulf countries regularly host summits and forums bringing together African leaders, policymakers, and business elites to facilitate dialogue.

The African Continental Free Trade Area amplifies this dynamic. Officially launched in 2021, AfCFTA creates a single market projected to grow to 1.7 billion people and $6.7 trillion in consumer and business spending by 2030, according to World Economic Forum analysis.

South-South cooperation also reflects shared recent development experiences. Gulf economies underwent rapid infrastructure modernization within living memory, creating institutional knowledge about managing large-scale projects in challenging environments.

How Sheikh Ahmed Dalmook Al Maktoum Structures Long-Term Infrastructure Projects

Inmā’s portfolio emphasizes infrastructure assets that generate sustained economic activity and government revenue. The Karachi Port modernization exemplifies this approach. The 50-year concession transforms maritime logistics capacity while creating employment and expanding bilateral trade routes between Pakistan and the Gulf.

Ghana’s 250-megawatt power plant enhances energy reliability and supports industrialization. Pakistan’s green energy project delivers 1,200 megawatts of solar and wind capacity, advancing the country’s clean energy transition while reducing import dependence.

These projects share several characteristics:

• Long-term concessions aligning investor and government interests
• Revenue-generating capacity reducing public budget burden
• Operational partnerships including technology transfer and training
• Strategic importance to host government development objectives

Governments often lack capital for major infrastructure, but can grant long-term operating rights. Investors gain predictable revenue streams while governments obtain infrastructure without immediate fiscal impact.

The Abu Dhabi Ports partnership in Guinea combines Emirati port operations expertise with local government priorities for trade facilitation.

Why Energy and Ports Create Strategic Value

Inmā concentrates on energy and maritime infrastructure. Both sectors generate economic multiplier effects extending beyond direct project employment.

Energy projects address fundamental constraints on economic growth. Unreliable power supply limits industrial development, constrains business operations, and reduces the quality of life. By delivering baseload capacity, energy investments enable broader economic activity across sectors.

Maritime infrastructure creates enabling conditions for trade and economic integration. Modern port facilities reduce shipping costs, accelerate cargo handling, and support logistics networks. The economic impact extends to manufacturing, agriculture, and services that depend on efficient trade connections.

Fujairah’s crude oil facility secures low-sulfur fuel oil supply for regional energy markets, reducing vulnerability to supply disruptions while creating storage capacity that stabilizes pricing.

Energy security and trade facilitation represent national development objectives that transcend political cycles, creating stable policy environments for long-term investment.

What This Means for Development Finance

Sheikh Ahmed Dalmook Al Maktoum’s bilateral approach differs from both Western multilateral development and the Chinese Belt and Road Initiative lending. Bilateral partnerships enable rapid deployment and flexible structures. BRI projects often involve Chinese contractors, while Sheikh Ahmed’s model emphasizes local capacity building and operational partnerships.

As Western development assistance contracts and concerns grow about debt sustainability in BRI projects, bilateral partnerships with Gulf investors offer middle-ground alternatives.

White & Case analysis notes that “strong diplomatic and economic ties have long existed between the GCC states and North Africa,” but recent years have seen relationships expand to sub-Saharan Africa and from exclusive focus on oil to “a broad spectrum of other sectors.”

Replicating this model at scale requires maintaining partnership quality. Sheikh Ahmed’s model succeeds through personal relationships, careful project selection, and operational partners with proven capabilities. As the Gulf capital seeks broader deployment across emerging markets, preserving these quality standards while increasing transaction volume will determine whether bilateral partnerships can sustainably supplement contracting Western aid.

For emerging market governments, the model offers faster project deployment, flexible terms, and investment without political conditionality. Long-term development impact requires effective project execution, technology transfer, and local capacity building.