For English-speaking African bankers, Wall Street and the City are losing ground to newer acronyms: DIFC (Dubai International Finance Centre) and KAFD (King Abdullah Financial District). These two financial hubs – in Dubai and Riyadh respectively – have become essential destinations.

African banking offices in the Arab world

Three major African banks have recently announced plans to either open or expand offices in these locations.

Even if global banks are present in the Gulf, they can no longer easily manage the entire corridor. This creates opportunities for African banks to step in

South Africa’s Absa Bank and Kenya’s Equity Bank will both establish offices at Dubai’s DIFC in early 2026, while Nigeria’s United Bank for Africa, already present at DIFC, plans to open an additional office at Riyadh’s KAFD by year-end.

“The primary rationale for these banks is following their clients’ growth ambitions. If major corporations are selling in the Middle East, banks must be there too,” says Frédéric Boutet, an associate director at Africa specialists Boston Consulting Group (BCG).

Since 2016, African exports destined for countries of the Gulf Cooperation Council (GCC) – comprising Saudi Arabia, UAE, Bahrain, Kuwait, Oman, and Qatar – have grown faster than to any other region: up 145%, compared to 100% for China and 70% for the EU.

Dubai: Gateway to global markets

Equity Bank, ranked as Africa’s 16th-largest financial institution according to The Africa Report’s latest top 300 ranking, sees Dubai as integral to its strategic plans. Its goal is to build value chains across East and Central Africa by connecting these to global markets, with the UAE acting as a key entry point.

Equity CEO James Mwangi, alongside fellow banking chiefs Tony Elumelu (UBA) and Kenny Fihla (Absa Bank), recognises the importance of being present in the Arabian Peninsula. The region is a strategic marketplace where banks’ corporate clients find crucial business opportunities in energy, agriculture, and mining.

“Even if global banks are present in the Gulf, they can no longer easily manage the entire corridor. This creates opportunities for African banks to step in,” says Tijsbert Creemers-Chaturvedi, managing director and senior partner at BCG South Africa.

On 8 July, Emirati holding company NG9 agreed to a deal with authorities in the Democratic Republic of Congo, where Equity Bank and UBA have strong footholds, to finance a copper and cobalt refinery.

In May, Saudi energy firm ACWA pledged to invest R7bn (around $378m) over five years in water and energy projects, under an agreement with South Africa. African banks in the Gulf could act as co-arrangers for these initiatives.

Taking advantage of international bank withdrawals

Tijsbert Creemers-Chaturvedi, who leads BCG’s financial services practice in Africa, notes that major African banks are well-positioned to benefit from the development of these financial hubs, especially as global banks have struggled to sustain their African presence.

“BNP Paribas, Standard Chartered, and Société Générale have closed branches. Even though these banks remain active in the Gulf, they no longer operate seamlessly across the entire Africa-Gulf corridor – African banks can therefore fill this gap.”

International banks see Africa as risky, politically and economically, leaving significant market opportunities open to continental banks.

Gulf nations also offer greater openness to diversified financing compared to their American and Chinese rivals.

A recent Afreximbank report highlights that “GCC investments focus on resource security and economic diversification, while American investment typically emphasises development initiatives and energy challenges. China’s strategy centres on the Belt and Road initiative, expanding markets and acquiring resources to boost trade and connectivity in Asia and Africa”.

A decisive part of African finance now unfolds in Dubai, shaped by East-West dialogue. Here, speed, robust legal frameworks, and deep markets are redefining capital flows

African banks thus stand to gain more than just following their corporate clients. The Middle East doesn’t only import – it invests substantially. Between 2012 and 2022, GCC countries injected $100bn into Africa. Investments between 2022 and 2023 alone reached $113bn, surpassing the previous decade. Over the next five years, investments are expected to range between $20bn and $30bn annually.

Diaspora: A new niche

African banks do not intend to compete directly with local Gulf banks for local customers. Yet, their presence unlocks another important niche: diaspora communities. In 2023, remittances from the Middle East accounted for 27% of total inflows into Africa, overtaking Western Europe’s 23%.

Money transfers from GCC nations to Kenya alone surpassed $3bn, significantly boosting foreign exchange reserves, according to Afreximbank.

Finally, at financial centres such as DIFC or KAFD, African banks aim to gain expertise in structured finance. Mastering these skills will allow them to become lead arrangers and bookrunners in major projects across Africa – roles currently dominated by international banks.

“African banks at DIFC find an ideal environment for creating special-purpose vehicles to structure debt portfolios, securitise trade flows, or set up debt funds, accessing institutional investors, family offices, and advanced compliance platforms,” says Moustafa Mourouvaye, CEO of Brweidge, a structured finance firm operating between Africa, Asia, and the Gulf.

“A decisive part of African finance now unfolds in Dubai, shaped by East-West dialogue. Here, speed, robust legal frameworks, and deep markets are redefining capital flows.”