Mashreq Becomes First UAE Bank to Enter GIFT City

Mashreq, a major bank from the United Arab Emirates (UAE), has received in-principle approval to open a branch in GIFT City, located in Gujarat, India. This makes it the first UAE-based bank to enter India’s international financial centre. This move is a major step toward strengthening India-UAE financial ties and supporting international banking activities.

Mashreq Gets Approval to Join GIFT City

The International Financial Services Centres Authority (IFSCA) has given Mashreq Bank the initial go-ahead to start its operations in Gujarat International Finance Tec-City (GIFT City). This branch will be an International Financial Services Centre Banking Unit (IBU). The bank is planning to begin full operations by the end of 2025. Mashreq has also received approvals from the UAE Central Bank and relevant Indian authorities.

Purpose and Services of the New Branch

The new GIFT City branch will focus on helping international and cross-border clients. It will offer services like foreign currency loans, trade finance, and risk management tools. GIFT City’s location and time zone will help make transactions faster and easier for both Indian and Gulf region customers. The branch will also benefit from some tax relaxations, making it cheaper to offer services.

Strengthening UAE–India Financial Relations

This move is seen as a way to make India and UAE’s financial connection stronger. Mashreq, being one of the top banks in the Middle East, can now help Indian businesses reach global partners. Experts believe this can help increase investment, trade, and capital flow between the two nations.

Why GIFT City Attracts Global Banks

GIFT City is becoming popular among international banks because of its modern facilities and helpful rules. It is built to be a global financial hub. With Mashreq’s entry, the city is likely to attract even more foreign banks and companies in the future, showing the growing trust in India’s financial system.