Absa Group Ltd., South Africa’s third-largest bank by assets, is set to open a representative office in Dubai next year. This move aims to capitalize on the increasing trade and investment between the Middle East and Africa.

Yasmin Masithela, the chief executive officer of Absa Group Ltd.’s corporate and investment banking unit, announced, “We’re setting up a Dubai office in the first quarter of 2026,” during an interview in Johannesburg. The bank is currently awaiting regulatory approval for this new office.

The Dubai office will enhance Absa’s ability to serve clients in Africa looking to engage with Gulf nations, as well as Middle Eastern businesses seeking opportunities in African markets. Masithela explained that Dubai was chosen due to its high concentration of clients interested in investing in African infrastructure.

According to the World Economic Forum, Gulf countries have invested over $100 billion in Africa since 2014. During this period, trade between the United Arab Emirates and sub-Saharan Africa has increased by more than 30%, while trade between Saudi Arabia and the region has surged twelvefold.

In addition to establishing its Dubai office, Absa will join other banks like Investec Ltd., Standard Bank Group Ltd., Rand Merchant Bank, and Nedbank Group Ltd., which already have offices in the emirate. This new location will complement Absa’s existing international business portfolio, which includes operations in the UK, US, and a recently opened non-banking unit in China.

Looking ahead, Absa’s corporate and investment banking division expects earnings to grow this year, with projections indicating a “middle single-digit level” growth rate. Some of its sub-units, particularly in corporate business, may see growth exceeding 10%. As of the latest reports, Absa’s shares had risen by as much as 0.5%, although the gains were later trimmed to 0.2% by 10:10 a.m. in Johannesburg.