Equity Group Holdings Plc, the largest bank in Kenya, plans to open an office in the United Arab Emirates in the fourth quarter of the year as it looks to benefit from the increasing trade and investment between the Middle East and Africa.
According to Chief Executive Officer James Mwangi, the bank is in the final stages of getting regulatory approvals for the move.
Once the UAE office opens, Equity will join several African financial institutions expanding into the Gulf, including Absa Group Ltd., Standard Bank Group Ltd., and United Bank for Africa Plc, Bloomberg reported.
These banks are positioning themselves to attract investors from the Gulf who are turning their focus to Africa, a continent rich in minerals needed for the green energy shift and home to large areas of fertile land for food production.
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“The Middle East has deep capital sources, very strong logistics for trade, and it is a strong centre for investment,” Mwangi said.
“Linkage with the middle-income segment is growing in India and China. That will provide a very strong market wave for African goods and services.” Gulf countries have recently stepped up investments in Africa.
In May, Crest Africa reported that Gulf nations have shown interest in or completed energy-related deals worth over $6 billion in just a few weeks.
In South Africa, Saudi Arabia’s Zahid Group and other investors are said to be in advanced talks to buy Barloworld Ltd., a major distributor of Caterpillar Inc. equipment on the continent.
At the same time, Abu Dhabi’s Adnoc and Saudi Arabia’s Aramco are reportedly bidding for Shell Plc’s downstream assets in South Africa.
This push by Gulf countries highlights their growing interest in building energy and investment ties with African nations.
A report from the African Export-Import Bank showed that trade between Africa and the UAE alone jumped 38% over two years, reaching $86 billion by the end of 2023.
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