UAE’s biggest bank targets South Africa after clearing legal hurdle

First Abu Dhabi Bank (FAB), the largest lender in the United Arab Emirates, has set its sights on South Africa as it intends to apply for a banking licence in Africa's most developed financial market. The move was confirmed in a trademark dispute that FAB successfully fought against FirstRand, South Africa's biggest bank by market capitalisation, at the country's Supreme Court of Appeal.

FAB wins trademark dispute against FirstRand

BusinessDay South Africa reports that FirstRand had challenged FAB's trademark application, arguing that the 'FAB' name bore too close a resemblance to FNB, the retail banking brand operated under the FirstRand group. The appeal court dismissed the objection and ruled that there was no basis to doubt FAB would satisfy all regulatory requirements, including securing a banking licence, once its trademarks are registered.

FAB argued before the court that it chose to secure trademark protection ahead of a licence application for practical financial reasons, describing any other sequence as putting the cart before the horse.

Gulf lender expands as European banks retreat

In February 2026, the bank opened a representative office in Nigeria. The Abu Dhabi-based institution established its first presence in West Africa following regulatory approval. The bank already holds operations in Egypt and Libya, and a South African licence would give it coverage spanning North, West and Southern Africa.

With total assets of approximately $406 billion, FAB is larger than Standard Bank and FirstRand combined, giving it considerable firepower to compete in markets where it chooses to operate. The timing of FAB's ambitions is notable. HSBC recently completed a full withdrawal from South Africa, having sold parts of its local business to South African banks. BNP Paribas, Barclays and Standard Chartered have each reduced their footprint across the continent over the past several years.

The retreat of European institutions has opened space for Gulf-based lenders, whose governments have deepened trade and investment ties with African countries, BusinessDay Nigeria reports.

What this means for African banking and the naira

FAB's expansion strategy appears designed to capture business in trade finance, infrastructure funding, energy, and corporate banking, sectors where demand continues to grow across the continent. For Nigerian businesses and the naira, increased Gulf bank presence could deepen trade finance flows between Nigeria and the UAE, especially after both countries signed a Comprehensive Economic Partnership Agreement (CEPA) aimed at strengthening trade and investment. Jumoke Oduwole, Minister of Industry, Trade and Investment, said the agreement focuses on improving market access for Nigerian products and services, attracting quality investment, and supporting the country's economic diversification under President Bola Ahmed Tinubu's Renewed Hope Agenda.