Equity Group Holdings Plc, Kenya’s largest lender, plans to establish an office in the United Arab Emirates (UAE) in the fourth quarter of the year.
- Equity Group Holdings Plc plans to open a UAE office to capitalize on Middle East-Africa trade flows.
- The move follows similar expansions by other African finance institutions into the Middle East.
- The Gulf region has shown an increasing interest in investments across Africa, particularly in energy and agriculture.
Equity Group Holdings Plc, Kenya’s largest lender, plans to establish an office in the United Arab Emirates in the fourth quarter of the year, aiming to capitalise on growing trade and investment flows between the Middle East and Africa.
The bank is currently in the final stages of securing regulatory approvals, according to Chief Executive Officer James Mwangi.
With this move, Equity will join a growing list of African financial institutions, such as Absa Group Ltd., Standard Bank Group Ltd., and United Bank for Africa Plc, that are expanding their footprint in the Middle East, Bloomberg reported.
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These firms are positioning themselves to attract Gulf investors seeking opportunities in Africa, a region rich in critical minerals for the green energy transition and endowed with vast arable land ideal for food production.
“The Middle East has deep capital sources, very strong logistics for trade, and it is a strong centre for investment. 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,” Mwangi said.
Gulf nations intensify investment in Africa
Business Insider Africa previously reported that Gulf nations have collectively shown interest in or concluded energy-related deals worth at least $6 billion across Africa in just a matter of weeks.
In South Africa, Saudi Arabia’s Zahid Group and other investors are reportedly in advanced talks to acquire Barloworld Ltd., a key distributor of Caterpillar Inc. equipment on the continent.
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At the same time, Abu Dhabi’s Adnoc and Saudi Arabia’s Aramco are said to be bidding for Shell Plc’s downstream assets in Africa’s most industrialised economy.
This wave of investment reflects a broader push by Gulf states to strengthen their energy ties with Africa.
A report by the African Export-Import Bank noted that bilateral trade between Africa and the United Arab Emirates alone surged by 38% over two years, reaching $86 billion by the end of 2023.
