Mashreq Becomes First UAE Bank to Enter GIFT City

Category: Banking & Economy | International Business | Indian Current Affairs
Published by: IndianCurrentAffairs.com
Date: July 2025

🌍 Introduction: A Strategic Milestone in Indo-UAE Financial Ties

In a significant boost to India–UAE economic cooperation, Mashreq Bank, one of the leading financial institutions in the United Arab Emirates, has become the first UAE-based bank to establish operations at India’s Gujarat International Finance Tec-City (GIFT City).

This landmark move marks a new chapter in cross-border banking and financial integration, reinforcing GIFT City’s position as a global financial services hub and showcasing growing confidence in India’s fintech and regulatory ecosystem.

🏦 About Mashreq Bank

  • Founded: 1967
  • Headquarters: Dubai, UAE
  • Assets Under Management (AUM): Over $50 billion
  • Operations: Present in over 13 countries including the UK, US, Hong Kong, India, and Bahrain

Mashreq is known for its innovative digital banking solutions, corporate banking, treasury services, and Islamic finance offerings.

đź“Ť Why GIFT City?

GIFT City, located in Gandhinagar, Gujarat, is India’s first International Financial Services Centre (IFSC). Designed to rival global financial centers like Singapore, Dubai, and London, GIFT City offers:

  • Tax incentives (e.g., no securities transaction tax, lower corporate tax)
  • Ease of doing business with unified regulatory oversight via IFSCA (International Financial Services Centres Authority)
  • High-end infrastructure and a tech-first ecosystem
  • A growing ecosystem of banks, stock exchanges, fintechs, and insurance companies

Mashreq’s entry is a strong validation of the center’s global relevance and operational readiness.

🤝 India–UAE: Strengthening Bilateral Financial Relations

The move reflects growing economic synergy between India and the UAE, especially in:

  • Banking and financial services
  • Trade settlement in local currencies (INR-AED)
  • Investment in fintech and infrastructure
  • G2G collaborations in tax, compliance, and transparency

Mashreq’s establishment at GIFT City is also expected to facilitate cross-border remittances, export-import financing, and UAE investments into Indian markets.

đź’Ľ Services Offered by Mashreq at GIFT City

Mashreq’s India operations at GIFT City are expected to cater to both domestic and international clients, offering:

  • Trade finance & treasury services
  • Corporate banking and syndicated loans
  • Investment and wealth management solutions
  • Non-retail banking in compliance with IFSC norms
  • Islamic banking products, in line with GIFT City’s regulatory scope

Mashreq has also expressed interest in partnering with Indian fintechs and NBFCs to support digital trade infrastructure.

🔍 Regulatory and Strategic Support

Mashreq’s entry into GIFT City has been facilitated by:

  • IFSCA’s pro-business policies
  • Support from the Reserve Bank of India (RBI) and Department of Economic Affairs
  • UAE’s Ministry of Economy and India’s Department for Promotion of Industry and Internal Trade (DPIIT)

Industry experts view this move as a precursor to more international banks entering India via GIFT City in the coming years.

đź“Š Broader Impact on the Financial Ecosystem

  1. Gateway for Gulf Investments: Mashreq will act as a bridge for UAE businesses and high-net-worth individuals looking to invest in India.
  2. Currency Diversification: Promotes trade in INR-AED, reducing reliance on USD and enhancing financial autonomy.
  3. Innovation in Islamic Finance: Potential for Sharia-compliant products, enhancing financial inclusion.
  4. Boost to GIFT City’s Reputation: Enhances India’s attractiveness for global banking operations.

🗣️ Official Remarks

Ahmed Abdelaal, Group CEO, Mashreq:
“Our entry into GIFT City demonstrates our belief in India’s financial sector and our commitment to fostering deeper UAE–India ties through innovation and investment.”

IFSCA Chairperson (India):
“Mashreq’s presence is a signal to global banks that GIFT City is the next destination for high-growth, cross-border banking opportunities.”

âś… Conclusion: A Financial Game-Changer

Mashreq becoming the first UAE bank in GIFT City is a monumental step for both nations. It reflects India’s emergence as a financial powerhouse, capable of attracting global players, and UAE’s intention to diversify its financial presence beyond the Gulf.

As more international institutions explore the GIFT City opportunity, this partnership will serve as a blueprint for future collaborations rooted in trust, growth, and innovation.

For more updates on global banking developments and India’s international finance ecosystem, stay connected with IndianCurrentAffairs.com.

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