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Mashreq Becomes First UAE Bank to Secure In-Principle Approval for Branch in GIFT City.

Banking & Finance | Dated: 07 Jul 2025

On July 2, 2025, UAE-based Mashreq Bank received in‑principle approval from India’s International Financial Services Centres Authority (IFSCA) to establish its first International Financial Services Centre Banking Unit (IBU) in Gujarat International Finance Tec‑City (GIFT City)—marking the first time a UAE bank has entered this global finance hub.

🎯 Key Highlights:

  • - Mashreq’s IBU is expected to launch by Q4 2025, subject to final regulatory clearances. The bank has already obtained approvals from the UAE Central Bank and Special Economic Zone (SEZ) authorities, and is now waiting on the full license from IFSCA.
  • - The new branch will offer foreign currency loans, trade finance, and treasury and risk management products. The strategic advantage of GIFT City’s aligned time zone with the UAE enables faster, more convenient cross-border services. Early operations will also benefit from Tax Deducted at Source (TDS) exemptions, allowing competitive structuring of financial products.
  • - By establishing this presence, Mashreq reinforces India–UAE financial collaboration. Its Group CEO Ahmed Abdelaal highlighted the move as a part of the bank’s strategy to “foster innovation, investment and facilitate trade between India and Gulf corridors”.

💡 Other Important Facts:

  • (i) GIFT City has seen growing global interest, with Mashreq joining other foreign banks like Natixis and First Abu Dhabi Bank to strengthen the ecosystem. As of June 2025, there are 31 IBUs operating in GIFT City—including 14 foreign banks—reflecting India’s expanding financial hub.
  • (ii) This expansion positions Mashreq to serve an increasing flow of capital between India and the UAE, tapping into the India–UAE CEPA framework, rising bilateral investment, and India’s projected 7% GDP growth in 2025.

📚 Test Your Knowledge:

Which bank has recently become the first UAE-based bank to receive in-principle approval to open a branch in GIFT City, India?

Correct Answer: Mashreq Bank

🚀 Quick Recap:

About Mashreq Bank

  • CEO: Ahmed Abdelaal
  • Headquarters: Dubai, United Arab Emirates