Middle East Banks Grow African Presence

Middle Eastern banks are rapidly expanding their footprint in Africa, targeting corridors of trade, capital and remittances long dominated by Western lenders. Emirates NBD’s acquisition of HSBC Egypt’s retail business and First Abu Dhabi Bank’s plans for a Lagos representative office and a South African banking licence illustrate the shift. Emirates NBD reported $317 billion in assets in 2025, while First Abu Dhabi Bank is the largest bank in the MENA region by assets at $382.2 billion and operates in 20 markets.

“The transaction strengthens our presence and supports our ambition to continue growing our customer franchise,” said Shayne Nelson, Emirates NBD Group CEO, describing the Egypt deal as “an important milestone in the execution of the bank’s regional growth strategy.”

The strategic moves come as many Western banks have scaled back African operations in recent years amid tighter regulatory regimes in their home markets, creating space for both homegrown African banks and new entrants from the Gulf. Gulf lenders are pursuing growth across retail banking, Islamic finance, cross-border payments and corporate lending, leveraging deeper political, socio-economic and cultural ties between the regions.

• Emirates NBD acquired HSBC Egypt’s retail business and reported $317 billion in assets in 2025.
• First Abu Dhabi Bank (FAB) holds $382.2 billion in assets, plans a Lagos representative office, and intends to apply for a South African banking licence.
• Qatar National Bank (QNB) owns a 20.1% stake in Ecobank, which reported $423 million in profit before tax in H1 of this year.
• Dubai-based Soren Investment Co. purchased a 42.8% controlling stake in Kenya’s Gulf African Bank last year.

Other Gulf institutions are also deepening exposure. Qatar National Bank controls 20.1% of Ecobank, the pan-African lender present in 35 markets; Ecobank posted $423 million profit before tax in the first half of this year. Bahrain’s Al Baraka, the UAE’s Mashreq Bank, and Soren Investment Co., which bought a 42.8% controlling stake in Kenya’s Gulf African Bank, are among the wave of investors and partners strengthening local footprints.

Macro links between the regions reinforce the commercial case. Bilateral trade between the Middle East and Africa stood at about $260 billion most recently, while foreign direct investment exceeded $100 billion from 2012 to 2022. Gulf Cooperation Council states were a major source of remittances to Africa, sending $28.3 billion last year versus $1.1 billion in development assistance.

Islamic finance is a standout opportunity. Africa hosts roughly 600 million Muslims, but its contribution to global Islamic financial services was only $30.7 billion in 2025 — about 0.7% of a $4.4 trillion global market. Even in predominantly Muslim countries such as Senegal, where 94% of the population is Muslim, Islamic banking assets represented just 8.3% of total banking assets in 2024. “Islamic finance offers a compelling blueprint for strengthening regional financial resilience and economic integration,” said Suleiman Walhad, president of the Horn of Africa States research group.

Outlook: Gulf banks appear set to accelerate selective expansion across Africa, combining acquisitions, stakes in pan-African banks and targeted local investments. Their strategy hinges on trade and labor links, remittance flows and underpenetrated Islamic finance markets. If Gulf entrants successfully scale retail and Shariah-compliant services while navigating local regulation, they could reshape competitive dynamics, complementing — and in some corridors competing with — Africa’s homegrown banks.