JPMorgan has expanded in Dubai as part of its plan to grow in the region and partner with medium-sized companies amidst increased competition in the Middle East.
The move is challenging competitors such as Citigroup, as JPMorgan devotes more resources to coverage of midcaps in Austria and Poland. This offers the bank another revenue stream, alongside its focus on blue-chip firms.
The competition between banks
Global firms are increasingly expanding into the Middle East due to the region’s oil wealth and growing regional markets. Barclays recently expanded into Saudi Arabia, while Goldman Sachs opened its office in Kuwait. Additionally, Citigroup first opened in the UAE in 1964 and started offering commercial bank activities in 2007.
When it comes to competition, Citigroup’s representatives in the EMEA region see the UAE as a space with multiple opportunities for increasing market share, according to Reuters. The bank said it has a natural advantage in the region due to its established presence. However, Citi also believes that this increased competition could pose potential difficulties. The bank is investing in secret, adding more headcount and upgrading people, as well as investing in capital.
Meanwhile, JPMorgan is in the process of evaluating a strategy to increase coverage of midcaps in Türkiye, considering hiring bankers dedicated to midcap clients in the country. Additionally, the company is already relocating bankers from London to take up Dubai roles to focus on smaller venture capital-backed companies.
This comes as JPMorgan expanded to Poland and is looking for more midcap businesses in Austria. The bank already has a large presence in Germany, covering the country’s Mittelstand firms, with its balance sheet surging as it added more solutions and operations to compete with domestic banks for business. The expansion across Europe doesn’t end here, as the bank opened an office in Berlin with space for 400 staff ahead of its launch of a digital retail bank.
