Horn of Africa becoming 'battleground' for rival Gulf monarchies

A new UAE-funded palace rises above Addis Ababa, symbolising the growing Gulf power struggle in the Horn of Africa. [Screen grab, AFP]

On a hill overlooking the Ethiopian capital, Addis Ababa, a giant new palace is emerging, funded by the Emiratis and an ostentatious sign of the way Gulf monarchies are battling for influence in the Horn of Africa.

The Horn -- that comprises Ethiopia, Somalia, Djibouti and Eritrea -- is a highly strategic spot on one of the world's busiest trade routes between the Suez Canal and the Indian Ocean and lies just across the Red Sea from the Middle East.