Absa Group Ltd., South Africa’s third-largest bank, plans to open an office in Dubai by early 2026, subject to regulatory approval. The move shows the growing competition among South African banks to benefit from increasing trade and investment between the Gulf region and Africa.
Absa said it is opening a Dubai office to support clients looking for business opportunities between Africa and the Middle East. However, the move is also a response to competitors like Investec, Standard Bank, Rand Merchant Bank, and Nedbank, which already have offices there.
Yasmin Masithela, CEO of Absa’s corporate and investment banking division, said the new office will bring the bank closer to clients. “You want to be closest to the clients that are driving the businesses that are aligned to your strategy, and infrastructure development has always been one of our strategic objectives,” she said.
Gulf countries have invested over $100 billion in Africa since 2014. Trade between the UAE and Sub-Saharan Africa has grown by more than 30%, while trade between Saudi Arabia and Africa has increased 12 times. Recent developments, like the UAE’s trade agreement with Kenya and Jameel Motors entering the South African market, highlight the rapid growth of this investment trend.
Absa’s Dubai office will expand its international presence, including locations in the UK, US, and a new unit in China.. Absa’s corporate and investment banking division expects moderate earnings growth this year, with some parts possibly achieving over 10% growth.
However, the success of the Dubai office will be key to shaping the bank’s long-term growth in a fast-changing and competitive market. Absa’s ability to stand out from competitors and manage the challenges of this important trade corridor will be vital for its role in Middle East-Africa investments.
