First UAE Bank at GIFT City: Mashreq Gets Regulatory Nod to Set Up Branch

Mashreq, a leading UAE-based bank, has become the first from the Emirates to secure in-principle approval to establish a branch in India's GIFT City. This move signifies growing UAE–India financial ties and is set to enhance Mashreq’s global footprint within the international finance sector.

Mashreq Gets Green Light for GIFT City Entry

Mashreq has received in-principle approval from the International Financial Services Centres Authority (IFSCA) to set up an International Financial Services Centre Banking Unit (IBU). Located in Gujarat International Finance Tec-City (GIFT City), this branch is expected to begin operations by the Q4 of 2025. This marks a significant milestone as Mashreq becomes the first UAE-based bank to establish a presence in India’s global finance zone.

Strategic Role of the GIFT City Branch

The upcoming branch aims to serveservice cross-border clients with a focus on foreign currency loans, trade finance, and risk management products. With GIFT City offering a synchronised time zone for Indian and Gulf clients, this will considerably streamline transactions and reduce turnaround times. Additionally, regulatory perks like initial TDS exemptions are expected to give Mashreq a cost-efficient edge in structuring financial tools.

Regulatory Milestones and Operational Readiness

Having already secured approvals from the UAE Central Bank and relevant SEZ agencies, Mashreq is progressing toward obtaining a full IFSCA licence. This final clearance will clear the way for robust operation planning and integration with the Indian financial system, further bolstering trade and investment flows between India and the Gulf region.

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Boosting Bilateral Financial Corridors

This development is expected to deepen UAE–India ties, encouraging collaborative investments and smooth capital flows. With Mashreq’s global track record and extensive Middle Eastern network, the GIFT City expansion could position the bank to build new financial corridors, connecting Indian firms to international partners with greater efficiency.

India's International Finance Ecosystem Attracts Global Banks

GIFT City continues to draw global institutions due to its supportive reforms and infrastructure aimed at making India a global financial services hub. Mashreq's entry reinforces international confidence in India's evolving financial ecosystem and underlines the city’s appeal for cross-border operations.

Conclusion

Mashreq becoming the first UAE-based bank to gain entry into GIFT City marks a pivotal development in India-UAE financial cooperation. With a projected rollout by late 2025, the branch will offer innovative banking solutions while strengthening international trade and financial links from within India’s prime financial zone.

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