Tony Elumelu, a multimillionaire businessman and philanthropist from Nigeria, has stated that United Bank for Africa Plc’s (UBA) global expansion strategy is incomplete unless it is present in the Gulf region.
“We have been looking forward to this day as it is the first time we will have presence in this part of the world. We know that our international expansion is incomplete if we are not present in the gulf,” Elumelu said.
The businessman made the statement while discussing UBA’s entry into the Gulf, with the opening of a new branch at the Dubai International Financial Center in Dubai, United Arab Emirates.
Elumelu went on to say that thanks to UBA’s collaboration with its franchises in 20 African countries, London, New York, and Paris, UBA (DIFC Branch) will be able to facilitate the financing of trade transactions between the Middle East and Africa.
UBA’s entry into the oil-rich Middle Eastern country comes nearly six months after Elumelu publicly disclosed his Caribbean investment interests.
The branch’s opening expands UBA’s global presence to 24 countries and four continents, as the bank seeks to serve new customers in addition to its 35 million existing customers.
The Dubai operation, which makes it the only Nigerian-owned bank to have expanded beyond Nigeria to the UAE, aligns with efforts to lead the way when it comes to doing business in Africa.
The group’s recent expansion into the UAE comes as trade, commerce, and investments in Africa continue to expand in the Gulf region and Asia. The group’s presence in the region will therefore enhance its ability to facilitate access of Gulf investors and banks to African markets.
Elumelu stated that Dubai’s strategic location at the crossroads of Asia, Europe, and Africa makes it an ideal market for the bank’s 35 million customers to leverage their businesses and expand their global footprint.
“The Dubai branch will serve customers across the Middle East with a core focus on correspondent banking, trade, and treasury while harnessing the opportunities the region has to offer to unlock untapped economic potential and support the continent’s development,” he said.
UBA is a leading financial services group led by Elumelu, one of Africa’s most powerful businessmen. It is one of the continent’s top banks due to its extensive pan-African and international operations.
Today, the bank is the 15th most valuable company on the Nigerian Exchange and has a market capitalization of N256 billion ($620 million), accounting for nearly one percent of the bourse’s total equity market capitalization.
The bank’s profit increased by 8.8 percent in the first quarter of 2022, from N38.2 billion ($92 million) in the first quarter of 2021 to N41.5 billion ($100 million), owing to an 18.3-percent increase in gross earnings revenue from N155.4 billion ($374.1 million) to N183.9 billion ($442.7 million).
Its presence in the UAE is expected to further diversify its revenue and earnings base, as its Nigerian operations contributed 65 percent of its earnings in the first quarter of 2022.
