Absa opens Dubai office as it targets more than $100bn in Africa-Middle East investment flows

Absa Group has opened a new office in Dubai as the South African banking group seeks to strengthen its position in international trade and investment between Africa and the Middle East.

The new office is intended to serve African clients who want to do business in Gulf countries, as well as Middle Eastern companies looking for opportunities across Africa. The expansion reflects the growing commercial relationship between the two regions.

According to figures cited by the World Economic Forum, Gulf countries have invested more than $100-billion in Africa since 2014. Trade between the United Arab Emirates and sub-Saharan Africa increased by more than 30% over that period, while trade between Saudi Arabia and the region expanded substantially.

Absa joins other South African financial institutions, including Investec, Standard Bank and Nedbank, which already have offices in Dubai. The bank says the location will help it connect customers with international capital and support business transactions across markets.

Cheryl Buss, chief executive of Absa International, said the strategy was about supporting trade and investment and facilitating global capital flows into Africa. She identified sectors such as agriculture, minerals, energy, infrastructure and logistics as important drivers of international interest.

The Dubai Financial Services Authority has granted Absa a Category 4 licence, allowing the office to arrange investment deals, advise on financial products and arrange or advise on credit. The licence gives the bank a platform to support clients without operating as a full retail bank in the market.

Absa has been expanding beyond its core markets of South Africa, Kenya and Ghana, which accounted for more than 80% of its profit during the six months to June. It is also exploring opportunities in Nigeria and Angola, while developing wealth services in Mozambique, Kenya and Mauritius. Do you think South African banks can become major gateways for international investment into the rest of Africa?

Source: https://www.moneyweb.co.za/news/companies-and-deals/absa-opens-dubai-office-as-lender-accelerates-expansion-plan/

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