Royal Bank of Scotland to pull out of Middle East and Africa

Royal Bank of Scotland (RBS) plans to sell or close its corporate debt and debt capital markets business in the Middle East and Africa, the latest pullback by the state-controlled British lender from emerging markets to focus on its domestic business.

The lender, 81-per cent owned by the British government, has been reviewing its global footprint as it seeks to rebuild its reputation after one of the biggest bailouts in British history during the global financial crisis.

Last month, media reports indicated most of its Asian corporate banking business was up for sale. This came on top of confirmation in November it was reviewing its options across its Central and Eastern Europe, Middle East and Africa (CEEMEA) network.

"Part of the strategy set out by [chief executive] Ross McEwan in February 2014 was to make RBS a smaller, more focused bank. As part of that strategy, we have taken the decision to exit our corporate debt and debt capital markets business in the Middle East and Africa," RBS said on Thursday.

Banking sources said RBS was attempting to sell its corporate banking business across the Middle East but had been unable to offload it in one chunk.

Two of the sources said the bank was now selling off its assets piecemeal to different buyers. A third source said news about sales was expected in the coming weeks.

"There will be different asset sales and, if the people aren't taken, they will be made redundant," said one of the sources, a Dubai-based banker.