Mashreq becomes 1st UAE bank to get nod for GIFT City branch
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New Delhi: UAE-based lender Mashreq has received in-principle approval (IPA) from the International Financial Services Centres Authority (IFSCA) to establish a new International Financial Services Centre Banking Unit (IBU) at Gujarat International Finance Tec-City (GIFT City), marking the first time a UAE-based bank has secured such approval.
Mashreq announced the development on Wednesday and said the branch is expected to become operational by the fourth quarter of 2025, pending final regulatory clearances.
“We are deeply confident in the potential of India’s dynamic financial ecosystem. This milestone complements our commitment to fostering innovation, investment, and facilitating trade between India and multiple key corridors in the Middle East and across the world,” said Ahmed Abdelaal, Group CEO of Mashreq.
The bank confirmed that it has already received approvals from the UAE Central Bank and the relevant Special Economic Zone (SEZ) authority, and is now in the final stages of obtaining a full license from the IFSCA.
Once operational, the GIFT City branch will offer a range of services including foreign currency loans, trade finance solutions, and treasury and risk management products. Its strategic location will allow Mashreq to serve Indian clients more efficiently, offering quicker turnaround and the benefit of operating in a single time zone.
The branch will also benefit from regulatory incentives such as Tax Deducted at Source (TDS) exemptions during the initial years, enabling competitive structuring of financial products and services, the bank added.
With PTI inputs