The unit of South Africa’s third-largest bank by assets plans to open a Dubai office next year to capitalize on growing trade and investment between the Middle East and Africa. “We are opening an office in Dubai in the first quarter of 2026,” Yasmine Masitela, chief executive of Absa Group Ltd’s corporate and investment banking division, said in an interview in Johannesburg. “We are just waiting for regulatory approval,” Bloomberg has reported.
The office will allow the lender to serve its clients on the continent seeking to do business in the Gulf, as well as businesses based in the Middle East seeking access to African markets. Absa chose Dubai because of its concentration of clients looking to invest in African infrastructure, Masitela said. “You want to be closer to customers who are running businesses that are aligned with your strategy, and infrastructure development has always been one of our strategic goals,” she said.
UAE-Africa imports and exports
According to the World Economic Forum, Gulf countries have invested more than $100 billion in Africa since 2014. During that period, imports and exports between the UAE and sub-Saharan Africa have grown by more than 30%, and the value of trade between Saudi Arabia and the region has increased 12-fold, according to the WEF. In January, the UAE signed an agreement with Kenya to boost trade and facilitate investment, and Saudi car distributor Jameel Motors plans to enter the South African market later this year.
Absa will join rivals Investec Ltd. , Standard Bank Group Ltd. , Rand Merchant Bank and Nedbank Group Ltd. with offices in Dubai. The new office will complement its international business portfolio, which includes so-called corridors in the UK and US and a non-banking unit set to open in China in 2024. Absa CIB expects profits to continue to grow this year. Earnings growth is likely to be in the “mid-single digits,” Masitela said, adding that some of its divisions, including corporate, could deliver growth above 10%. Absa shares rose 0.5% before paring gains to 0.2% at 10:10 a.m. in Johannesburg.
UAE invests in Africa
Over the past decade, the GCC countries have collectively invested more than $100 billion in Africa. The UAE has invested $59.4 billion. Saudi Arabia and Qatar have invested $25.6 billion and $7.2 billion respectively. It is worth noting that during this period, the UAE was the fourth largest foreign direct investor in Africa, after China, the EU and the United States. For example, in March, the International Holding Company, a UAE company, acquired a 51% stake in Zambian company Mopani Copper Mines.
DP World, the UAE multinational logistics company, is investing $80 million in a mega-logistics park covering more than 300,000 square meters in Sokhna, Egypt, under an agreement with the Egyptian Suez Canal Economic Zone. The company has also signed a 30-year contract to modernize and operate part of the Dar es Salaam port in Tanzania.