There had been local speculation that after the completion of its “Transform review” it was likely that Barclays would cut the retail banking part of its business in the region. The review looked at two main factors: whether the business “makes sense” within the global context of the company and whether it makes an adequate return on equity.
While Barclays’ business is profitable in the UAE, profits are understood to be relatively small when compared with other business units.
In a statement, Barclays said: “Following a strategic review, Barclays has decided to re-focus its efforts in the UAE on its key strengths in corporate and investment banking and wealth & investment management. Barclays reaffirms its commitment to the UAE and the MENA region.”
Discussion for the sale of the business will begin immediately and it is understood that Barclays wishes to sell as soon as possible and definitely before the end of 2014.
Barclays’ announcement follows the news that HSBC is to pull out of Bahrain, Jordon and Lebanon.
