Africa’s largest bank to open new branch in Egypt to capitalize on growing trade with Gulf nations

South Africa’s Standard Bank, the continent’s largest lender in terms of assets, will be opening a new branch in Egypt by year’s end, according to a report in Bloomberg.  

The move comes months after Egypt secured $35 billion in funding from the United Arab Emirates. In exchange, the UAE has secured development rights to prime real estate on the Mediterranean. 

The new office will allow “Standard Bank to capitalize on the significant emergence of the Gulf-sub Sahara Africa-Egypt corridors, and further support our clients in those corridors,” Rassem Zok of Standard Bank told Bloomberg.

Gulf nations like the UAE, Qatar and Saudi Arabia are increasingly eyeing Africa for investments as they seek to diversify their economies beyond oil and gas revenues. They have made significant investments in renewables and the agricultural sector in Africa.

Standard Bank’s decision to open an office in Egypt coincides with recent data that shows a growing reliance on countries outside of South Africa to fuel profits. According to Bloomberg, earnings from the bank’s South African business grew 3% in 2023. Profits from business abroad grew 49%.