Middle East Banks Grow African Presence
Africa’s position as a corridor for capital, trade, and investment is capturing the attention of Middle Eastern banks. For decades, the continent was a preserve of Western lenders. Today, most have exited due to stringent regulatory requirements in their home markets, leaving Africa’s homegrown banks to fill the void. But the dynamics are changing again as Gulf .. The post Middle East…
Middle Eastern banks are expanding their presence in Africa, capitalizing on deepening ties and opportunities in various sectors. Africa, once a domain of Western lenders, is now attracting Gulf banks seeking to exploit the region's growing trade, investment, and remittance flows. Emirates NBD Bank PJSC, one of the prominent Middle East banks, announced its intent to control the UAE-Egypt corridor by acquiring HSBC Egypt's retail business, marking a significant milestone in its regional growth strategy.
First Abu Dhabi Bank PJSC, the largest Middle East-North Africa bank by assets, has opened a representative office in Lagos and plans to pursue a banking license in South Africa. Other Gulf banks like Qatar National Bank, Al Baraka, Mashreq Bank, and Soren Investment Co. are also venturing into Africa through targeted investments and collaborative ventures.
Tighter connections are driving this expansion, with the Middle East and Africa witnessing a bilateral trade of $260 billion and foreign direct investment (FDI) exceeding $100 billion over the past decade. Remittances from the Gulf Cooperation Council states to Africa have reached $28.3 billion, far surpassing the $1.1 billion received as development assistance.
The potential in Islamic finance is also significant, as Africa's contribution to global Islamic financial services was only 0.7% of the total in 2025, highlighting a substantial growth opportunity.
Written by urgent.news from Global Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
