Middle East still Uganda’s biggest market for exports
The performance of the economy report for February 2026 indicates that at a country specific level, the United Arab Emirates (UAE) dominated, receiving 99.0% of Uganda’s exports to the region.
Uganda’s merchandise exports to Asia amounted to $267.83 million, slightly surpassing exports to the EAC, which totaled $260.43 million.
KAMPALA - In January 2026, the Middle East remained Uganda’s leading export destination, accounting for 48.9% of the total market share, a new report shows.
The performance of the economy report for February 2026 indicates that at a country specific level, the United Arab Emirates (UAE) dominated, receiving 99.0% of Uganda’s exports to the region.
Other key export destinations included Asia (18.43%), the East African Community (EAC, 17.92%) and the European Union (10.45%).
Uganda’s merchandise exports to Asia amounted to $267.83 million, slightly surpassing exports to the EAC, which totaled $260.43 million.
Within Asia, the main destinations were Hong Kong, Malaysia, China, India, and South Korea. Key exports to the region comprised mineral products, coffee, and spices, among others.
Iran war sends shock waves
Conflict across the Middle East continues to rage after the US and Israel launched wide-ranging strikes on Iran on February 28, 2026.
The war has disrupted the global energy supply chain and air travel, which could have far-reaching effects on countries across the world, including Uganda.
It has seen Iran effectively close the Strait of Hormuz, where about 20% of global oil and gas flows.
The Strait of Hormuz is between Iran and the northernmost tip of Oman, linking the Persian Gulf with the Arabian Sea.
Angelo Izama, a political analyst, told New Vision Online that recently, the UAE and other Gulf Cooperation Council (GCC) countries have become a leading export destination for Uganda and simultaneously, as important as China as a source of long-term investment.
"This is mostly in the energy, agriculture and ICT sectors. This geoeconomic status has moreover been attained within the last decade, indicating that this region will continue to grow in importance," he said.
Izama noted that the current crisis in the Middle East has proven the point that Uganda and East Africa must take it (Middle East) more seriously and invest in long-term arrangements.
This includes political understanding of the complexities in the Middle East in order to sustain the mutually beneficial aspects of the bond.
“As many Ugandans situated in Abu Dhabi (capital of the UAE) will attest, they would like to see the situation normalised so that their personal, social and economic investments continue,” Izama said.