With the recent launch of the United Bank for Africa’s branch in Dubai, UAE as its 24th location and fourth continent, the bank has listed five facts about its operations in Dubai.
UBA had extended its operations to the United Arab Emirates with the official launch of its new branch at the Dubai International Financial Centre (DIFC).
UBA, which is known as Africa’s global bank, until the latest expansion of its operation had for over seven decades, operating in 20 African countries, the United Kingdom, the United States of America and France.
What the bank is saying
- According to the bank in a statement, “the key focus areas include, manage and serve the group’s corporate and financial institution (FI) clients with the aim of deepening our share of their business, engage new corporate and FI Clients and refer them to other UBA Group subsidiaries and branches onboarding, lending and promote correspondent banking relationships in the Middle East.
- “Others include broaden our client base (corporate and FI Clients) beyond Dubai and UAE entire Middle East, cross-sell the group’s corporate banking products, loans and deposits will be booked in other Group entities, offer letters of credit beneficiary to clients and originate transactions and negotiate deals that will be booked in other UBA Group subsidiaries and branches.
- “DIFC is wholesale jurisdiction, so any retail customer dealing is expressly prohibited. Therefore, our client types are corporates, and financial institutions.
- “We have an advising and arranging license in DIFC, Dubai which means we do not extend credit or take deposit in Dubai. We do not run a local balance sheet in UBA Dubai and hence do not open bank accounts in Dubai for any client (be it corporate or FI)
- “UBA Group is the first pan African bank to establish a branch in the DIFC directly from Nigeria”.
What Elumelu said during the launch of the new subsidiary
Speaking during the launch of the new subsidiary in Dubai recently, the Chairman, UBA Group, Mr. Tony O. Elumelu, explained that with the Group’s foray into the Gulf Region, UBA continues to focus on its strategic intent to lead the way when it comes to doing business in Africa.
He said “Collaborating with our franchises in 20 African countries and the major financial centres of London, New York and Paris, UBA (DIFC Branch) will facilitate the financing of trade transactions between the Middle East and Africa, enabling trade finance and investments.
“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.
“So, today, we are now formally in four continents across the globe and serving over 35 million customers and still growing. Today also shows that UBA is also a strong franchise and we are expanding our reach across the world.
“We are considering other locations that would complement what we are doing. This is just the beginning. On behalf of everyone in UBA and our customers that made this happen because without them we would not achieve much, we say thank you to them and thank you to the authorities of UAE for granting us this authorisation to operate.”
Elumelu who is also the Founder of the Tony Elumelu Foundation (TEF), pointed out that UBA is the only bank of Nigerian origin that has extended out of Nigeria to the UAE.
“All others have come through other locations and it shows the strength and respect that the authorities in Dubai have for UBA. We are always very deliberate in executing our strategy. We have a long-term view, but we take them one step at a time.
“That is why you have seen consistent progress by UBA. It is not common to find enterprises with that kind of pedigree,” he said.
What you should know
- Through this new expansion, the UBA Group would be able to harness opportunities in the Middle East, Africa and South Asia (MEASA), which comprises 72 countries with an approximate population of three billion and a nominal GDP of $7.7 trillion and thereby, reinforce its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the rest of the world.