Case Studies

Over the past two decades, the Dubai International Financial Centre (DIFC) has quietly but decisively emerged as the most important international financial platform for African banks with global ambitions. What was once viewed as a convenient outpost for trade finance or correspondent banking has evolved into something far more strategic: a jurisdiction that offers credibility, access to capital, balance-sheet efficiency, and proximity to African clients who themselves have globalised.

This shift is no longer theoretical. A growing number of African banks have already established a presence in DIFC, while several others are actively evaluating entry. Together, these moves reflect a broader reorientation of African finance away from purely domestic or continental thinking, and towards a more global operating model.

Which African Banks have set up in Dubai?

Banks such as Standard Bank Group and Investec from South Africa, Mauritius Commercial Bank, Attijariwafa Bank and Bank of Africa from Morocco, Nigerian institutions including Zenith Bank, Access Bank and United Bank for Africa, as well as CRDB Bank from Tanzania, have all recognised the strategic value of Dubai as an international base. At the same time, banks such as Equity Group Holdings and Absa Group have publicly signalled interest or are widely understood to be assessing the opportunity.

Collectively, these institutions represent hundreds of billions of dollars in assets. They have deep corporate relationships across Africa, and a growing need for international platforms that match their scale and ambition.

DIFC provides credibility to African banks

One of the primary drivers behind this trend is credibility. DIFC is not merely a tax-efficient location or a convenient time-zone bridge. It is globally recognised as the leading international financial hub for the Middle East, Africa and South Asia. It is one of only a handful of cities worldwide classified as having “broad and deep” financial services capabilities. For African banks, a regulated presence in DIFC sends a powerful signal to global counterparties. It demonstrates adherence to international regulatory standards, robust governance, and the ability to operate within a jurisdiction that global investors and correspondent banks understand and trust.

This signalling effect matters. African banks continue to contend with persistent perceptions of sovereign risk, currency volatility, and regulatory fragmentation. A DIFC licence does not eliminate these realities, but it does change the context in which African institutions are assessed. Conversations shift from emerging-market exceptionality to international comparability, particularly when dealing with global lenders, multilaterals, and institutional investors.

Client migration to UAE is pulling African banks into DIFC

Just as importantly, African banks are following their clients. Over the past decade, a significant number of African corporates have restructured their operations to include UAE-based holding companies, trading entities, and regional headquarters. This is especially evident in sectors such as commodities, agribusiness, logistics, energy, and manufacturing, where proximity to Middle Eastern and Asian markets is commercially critical.

The structural constraint underlying this shift is Africa’s low level of intra-continental trade, which still accounts for less than a fifth of total trade flows. No African city has yet emerged as a natural continental treasury hub for multi-country corporates. In practice, Dubai has filled that void. African groups increasingly centralise procurement, trading, foreign exchange management, and liquidity functions in the UAE, often through sophisticated buying houses or treasury centres.

For banks, the implication is clear. Supporting these clients effectively now requires proximity to decision-makers, treasury teams, and holding structures that sit outside the continent. DIFC provides a regulated, internationally credible environment from which banks can deliver these services, while remaining deeply connected to African operating markets.

The rise of African family offices in Dubai

Alongside corporates, African wealth has also been gravitating towards Dubai. The growth of African family offices within DIFC has been particularly notable, reflecting broader trends in migration, wealth preservation, and intergenerational planning. Africa's richest man and Nigerian tycoon, Aliko Dangote, and the Rawji family (owners of Ruwenzori Group) from the Democratic Republic of Congo, are just two examples.

DIFC now hosts more than a thousand family offices globally, with Africa among the fastest-growing source regions. This is reinforced by the UAE’s Golden Visa programme, which requires a minimum investment of AED 2 million, or roughly US$500,000. It has proven attractive to African entrepreneurs, investors and executives seeking stability, mobility and access to global markets.

For African banks, this creates a natural extension of long-standing corporate relationships into private banking, wealth structuring and investment advisory. DIFC offers a platform where corporate balance sheets, personal wealth, and family capital increasingly intersect.

DIFC as a strategic tool for balance sheet efficiency

Beyond clients, DIFC has also become strategically important for African banks’ own balance-sheet management. Accessing international capital markets through DIFC entities allows banks to raise US-dollar funding at materially lower spreads than are typically available onshore. African banks face pricing of SOFR plus five to seven percent or more domestically. International funding raised through DIFC structures is often priced closer to SOFR plus three to four percent. The differential is significant.

These funds can then be downstreamed to operating subsidiaries. Or used to book large-ticket transactions in a stable, internationally recognised jurisdiction. For banks operating in higher-risk environments, this approach improves asset-liability management, reduces funding costs, and enhances resilience.

A clear licensing framework - but early structural choices matter

The mechanics of establishing in DIFC are, by global standards, unusually transparent and convenient. Licensing is overseen by the DIFC Authorities and financial institutions are regulated by the Dubai Financial Services Authority (DFSA). The banking license categories have a clear framework that distinguishes between full banking, wholesale banking, limited banking, and advisory activities. Most African banks opt for Category 4 (arranging and advising only) licences.

A common misstep, however, is defaulting to a representative office as a perceived low-risk entry point. In practice, representative offices are severely constrained, limited largely to marketing activity and unable to engage meaningfully on client needs. This is often compounded by misunderstandings around DIFC’s offshore legal status and the distinction between DFSA-regulated activity and onshore UAE business, which falls under the jurisdiction of the Central Bank of the UAE. Early structural decisions can therefore materially limit future growth if not properly thought through.

Execution typically involves engaging a mix of advisory firms, regulatory consultants and law firms, ranging from Africa-focused specialists such as Afrigate Commercial Brokers to more established players like Clarity Consulting Solutions now part of Ocorian, and leading regional law firms like Al Tamimi & Company. The costs of setting up are generally transparent and predictable.

For African banks, the conclusion is increasingly unavoidable. DIFC is no longer a peripheral satellite or optional experiment. It has become a foundational component of any serious international banking strategy. The question facing boards and executives is no longer whether to establish a presence in DIFC. It is how to do so in a way that aligns with long-term strategic intent rather than short-term symbolism.

How can ONGOLO support your plans to establish a presence in DIFC?

This is where ONGOLO Advisory is currently working with a Pan-African bank by helping the client to: define the right product and client strategy; select the appropriate licence and governance model; identify the right partners for the license application and post-licensing support; and embed themselves effectively within the DIFC ecosystem. In an era where African finance is globalising faster than ever before, getting this right matters.

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Are you looking to set up in DIFC? Contact us: hello@ongolo.com