Our friends at Mashreq are preparing to open their first branch in India’s Gujarat International Finance Tec-City (GIFT City) — the Asian country’s equivalent of DIFC and ADGM — in 4Q 2025, Mashreq India’s CEO Tushar Vikram told EnterpriseAM UAE. The lender just became the first in the UAE to secure in-principle approval to establish an International Financial Services Center Banking Unit (IBU) in the city, according to a press release (pdf).

The bank is in the final stages of securing a full license from India’s special economic zones regulator the International Financial Services Centres Authority, after having also secured approvals from the Central Bank of the UAE. It has also already identified a location for the branch and is now recruiting key staff, according to the statement.

The branch will offer services including foreign currency loans, trade finance, and treasury and risk management products, the statement added. The branch will benefit from the incentives on offer at the city, which include tax exemptions that will allow the lender to offer competitive financing structures, it said.

This would make Mashreq the second Middle Eastern lender in the low-tax zone after Qatar National Bank, joining a growing list of global banks using the hub for cross-border financing and acquisition lending. First Abu Dhabi Bank is also eyeing expansion there.

Mashreq is going big on India: The bank’s post in India is currently their largest offshore hub, housing a quarter of all its international assets, Vikram said. The bank’s India branch raised a USD 150 mn AT1 bond last year to support its growth plans, he added.

The UAE is also ramping up investments there: In February 2024, the Abu Dhabi Investment Authority received regulatory approval to establish a local subsidiary and launch a USD 4-5 bn fund in GIFT City. In October, the UAE and India also announced a USD 2 bn food corridor initiative and agreed to set up joint investment offices in both countries. The two sides were also in talks to raise UAE foreign direct investment in India to USD 100 bn, up from around USD 75 bn in existing commitments. This all comes as the two countries aim to bring bilateral non-oil trade to USD 100 bn by 2030.

More Indian firms are pouring investments in the UAE — and vice versa. This puts Mashreq in a strategic position to “play on both sides,” Vikram said. Mashreq is the largest AED-clearing bank in India, so the lender plays a big role in facilitating growing trade relations between the countries, he added. The bank is sector-agnostic, but some strategic sectors that are a good fit for Mashreq India include oil and gas, metals and mining, pharma, auto, chemicals, and retail, Vikram said.

Mashreq is also banking on the growth and expansion of Indian firms and banks. India is the fastest growing country in the world right now, with GDP expected to grow 7% y-o-y in 2025, and this is reflected in the ambitions of local entities, Vikram said.

Mashreq’s global network is a big part of its success in India: “We are seeing a lot of interest in India, and we as a bank bring our distribution reach in the Middle East and the GCC to Indian firms and banks,” Vikram said. The bank’s corporate banking and FI businesses have a healthy pipeline for the next quarter, he added.

WATCH THIS SPACE- The bank is also considering introducing gold leasing sometime this year or next year, he added.

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