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Madagascar is entering a decisive phase in its economic transformation, marked by renewed investor confidence, ambitious reforms, and a strategic openness to international partnerships. Among its most dynamic relationships is the fast-growing economic corridor with the United Arab Emirates. This partnership is reshaping trade flows, stimulating investment, and supporting long-term development.

According to the latest EDB Madagascar report, foreign direct investment reached $ 602 million in 2024, the highest level ever recorded in the country. This surge is driven by increased activity in agriculture, energy, telecommunications, and infrastructure, supported by a commitment to modernisation and enhanced competitiveness. With economic growth at 4.4%, outperforming the regional average, Madagascar is reinforcing its position as an emerging market with strong potential in the Indian Ocean.

Trade with the UAE has expanded at an exceptional pace. Non-oil trade between the two nations rose from Dh 692 million ($188 million) in 2023 to Dh 1.3 billion ($354 million) in 2024, reflecting a 90% year-on-year increase. Overall UAE Madagascar non-oil trade reached $386.7 million in 2024, a 75% jump that confirms the Emirates as one of Madagascar’s most dynamic commercial partners. Air connectivity is also strengthening, with Emirates flying 53,000 passengers in one year, boosting both business exchanges and tourism.

These developments were further reinforced during the Dubai Madagascar Business Forum in May 2025, which brought together more than 60 Malagasy companies and over 100 Emirati business leaders. The forum highlighted Madagascar’s strengths in agro-industry, renewable energy, mining, tourism, digital services, and logistics. It also emphasized a clear ambition to position the country as a rising star of the Indian Ocean and to achieve emerging economy status by 2030.

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Madagascar possesses unique comparative advantages that attract global investors. These include world-renowned vanilla, rare minerals, fertile agricultural land, rich fisheries, and unparalleled biodiversity. To unlock this potential, the country is establishing new investment incentives, modernised legal frameworks, public-private partnerships, and special economic zones. A strong focus on local value addition aims to ensure that natural resources create local jobs and long-term prosperity.

Infrastructure development is a central pillar of this strategy. Major initiatives are underway to modernise ports and airports and to improve regional and international connectivity. Madagascar is also one of the most digitally connected countries in its region and continues to expand broadband and mobile coverage to support innovation, entrepreneurship, and increased digital inclusion.

Energy development is another strategic priority. Madagascar aims to double access to electricity by 2030 through expanded use of solar, hydro, and wind power. Solar mini-grids are already bringing electricity to remote communities, supporting schools, health centers, and small businesses. Investments in large-scale solar parks capable of producing up to 100MW per year support the national objective of reaching 70% clean energy by 2028. Between 2020 and 2024, the share of renewable energy in the national mix rose from 16% to 28%, supported by international financial institutions and private partners.

Tourism remains one of Madagascar’s most powerful economic engines. As the third-largest source of foreign exchange, the sector contributes 14.9% of GDP and supports more than 350,000 direct jobs. In 2024, the industry recorded 308,275 international arrivals and generated over $780 million in revenues. Strong flight connectivity, including seven weekly Emirates flights, 17 Ethiopian Airlines flights, and 17 weekly routes to Nosy Be, is helping position Madagascar among Africa’s most attractive destinations. Upcoming projects, such as the new Artisanal Village at Ivato International Airport and growing investments in eco-resorts and high-end hospitality, underline the focus on sustainable and inclusive tourism development.

The deepening partnership between Madagascar and the UAE is opening new possibilities in renewable energy, logistics, infrastructure, tourism, and high-value agriculture. As global investors search for new frontiers, Madagascar stands out as a land of opportunity rich in resources, home to a dynamic population, and committed to a future shaped by innovation, sustainability, and shared prosperity.

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Madagascar companies exploring business opportunities with the UAE:

Agribusiness: Arbiochem, Inviso Group, Soavoanio, Vaniala

Finance & Insurance: SMMEC, Vanilla Pay International, Assurances ARO

Logistics: SMMC, Madagascar Ground Handling

Technology: SmartOne.AI

Tourism & Handiscrafts: Luceo Group, Madagascar Classic Collection, MadaOzi, Bijouterie Pala