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UBA Expands into Saudi Arabia Amid Record Profits

2024-11-03 16:58:45.787000

The United Bank for Africa (UBA) Plc is set to open a subsidiary in Saudi Arabia, marking its second presence in the Gulf Region after establishing operations in the UAE in 2022. This announcement was made by UBA Group Deputy Managing Director Muyiwa Akinyemi during the 8th Future Investment Initiative in Riyadh on November 3, 2024. The move is aimed at enhancing economic linkages and facilitating knowledge transfer in critical sectors such as food security and energy transition [ccc17a75].

In conjunction with its expansion plans, UBA reported an impressive profit before tax of N603 billion for the first nine months of the year, demonstrating resilience despite ongoing foreign exchange challenges in Nigeria. Akinyemi highlighted the bank's commitment to supporting young African entrepreneurs through initiatives like the Tony Elumelu Foundation, which aims to foster entrepreneurship across the continent [ccc17a75].

Previously, UBA America hosted a networking reception in Washington DC, in collaboration with Devex during the IMF/World Bank meetings, to enhance collaboration and fortify commercial diplomacy. Group Managing Director Oliver Alawuba and CEO Sola Yomi-Ajayi emphasized UBA's role in connecting Africa with the global economy, operating across 24 countries and focusing on customer experience [0227b221].

Additionally, UBA secured a $175 million financial package from the Africa Development Bank (AfDB) Group, which includes $100 million in long-term senior debt aimed at financing projects in Nigeria, particularly in infrastructure and agriculture. The trade finance component will support SMEs and local corporates engaged in export-import activities, further solidifying UBA's commitment to economic growth [e8b25dcf].

As UBA celebrates 40 years in the U.S., it plans to raise capital by March 31, 2026, while ruling out acquisitions. The bank aims to be among the top three financial institutions in every market it operates, with 60% of its revenue generated from outside Nigeria. UBA is also committed to supporting the United Nations' Sustainable Development Goals (SDGs) while balancing profit with developmental objectives [0227b221].

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