South Africa’s third largest bank plans to open a branch in Dubai by the beginning of 2026, pending regulatory approval. This move demonstrates the increasing competition among South African banking institutions to benefit from increased trade and investment between Africa and the Gulf region.
Absa announced that it will open a Dubai office in order to assist clients who are looking for business opportunities in Africa and the Middle East. The move is also a reaction to competitors such as Investec and Standard Bank who already have offices in Dubai.
Yasmin Mastithela, CEO, Absa’s corporate investment banking division said that the new office would bring the bank closer with its clients. “You want to be close to the clients who are driving the businesses aligned with your strategy. Infrastructure development has always been a strategic objective,” she said.
Gulf Countries have Since 2014, the UAE has invested more than $100 billion into Africa. The UAE has seen a growth in trade between Sub-Saharan Africa and the UAE. More than 30%of the trade between Saudi Arabian and Africa has increased. Recent developments like the UAE’s agreement with Kenya, and Jameel Motors entering South Africa, show the rapid growth of the investment trend.
Absa’s Dubai office will increase its international presence with locations in the UK, US and a new unit located in China. Absa’s corporate and investment bank division expects modest earnings growth this year. Some parts may even achieve over 10% growth.
The success of the Dubai branch will be crucial to the bank’s growth over the long term in a market that is constantly changing and highly competitive. Absa’s ability stand out from its competitors and manage challenges of this important trading corridor will be crucial for its role in Middle East Africa investments.
